IADS Exclusive– The Saks saga: Heritage, mergers, and risk in the making of America’s new luxury giant
AI is already disrupting the job market, predictions of "apocalypse jobs" increasing in the US
AI is already disrupting the job market, predictions of "apocalypse jobs" increasing in the US
What: Major US retailers are restructuring and redefining roles as AI accelerates automation and reshapes hiring practices.
Why it is important: Financial markets are rewarding bold AI strategies, but only companies that successfully scale and integrate AI realise lasting value.
The rapid adoption of artificial intelligence in the US is already transforming workforce management and organisational structures in retail, with companies like Walmart and Accenture reducing hiring and accelerating targeted layoffs to adapt to new technological realities. This shift is particularly pronounced for entry-level and white-collar roles, as AI-driven automation and augmentation redefine job requirements and productivity expectations. While some leaders, such as Walmart’s Doug McMillon, emphasise that AI will impact virtually every job, others warn of a looming “jobs apocalypse” that could see half of entry-level white-collar positions disappear. Despite these concerns, the retail sector’s experience over the past year suggests a more nuanced reality: leading retailers are leveraging AI to enhance productivity and upskill employees rather than simply replacing them. The financial markets are closely watching these developments, rewarding companies that demonstrate bold, effective AI strategies, as seen in Alibaba’s recent stock surge. However, the challenge remains for most retailers to scale AI initiatives successfully and balance technological innovation with human capital investment, ensuring operational resilience and sustainable growth.
IADS Notes: In September 2025, research from BCG and the Stanford Digital Economy Lab confirmed that only 36% of retail workers feel prepared for AI-driven change, with generative AI most disruptive for entry-level roles, emphasising augmentation over replacement (“AI is moving faster than your workforce strategy. Are you ready?”; “Canaries in the coal mine? Six facts about the recent employment effects of artificial intelligence”). March 2025 data from Forbes highlighted leading retailers achieving 4.5% annual productivity growth through strategic AI integration (“Redefining productivity in retail”). January 2025 findings from BCG underscored Walmart’s use of autonomous agents to process 850 million product data points and the sector’s focus on upskilling (“From potential to profit: closing the AI impact gap”). In September 2025, Bloomberg reported Alibaba’s stock surge following major AI investments, reflecting positive financial market reactions to ambitious AI strategies, though only a minority of companies realie substantial value (“Alibaba’s shares soar after investors buy into big AI moves”).
Steen & Strøm’s tax-free sales surge
Steen & Strøm’s tax-free sales surge
What: Steen & Strøm’s tax-free sales surged 27% in 2025, driven by international shoppers choosing Oslo over London due to favorable VAT policies.
Why it is important: The development underscores Oslo’s emergence as a leading luxury retail destination, benefiting from policy changes that have disadvantaged London.
Steen & Strøm has reported a 27% surge in tax-free sales for the first eight months of 2025, marking its fourth consecutive year of growth. This robust performance is attributed to the increasing appeal of Oslo as a luxury shopping destination, particularly among international shoppers who are now favouring the Norwegian capital over traditional hubs like London. The abolition of tax-free shopping for tourists in the UK has redirected both international and British consumers to cities where VAT-free purchases remain available, with Oslo’s strategic positioning and service innovation proving decisive. Chinese shoppers have emerged as the most significant international segment, followed by visitors from the US, UK, Thailand, and India, highlighting the global nature of this shift. Steen & Strøm’s investment in a new tax-free refund service has further enhanced its attractiveness, quickly establishing the store as a central hub for VAT reclaims in Norway. These developments reflect a broader transformation in European luxury retail, where policy, consumer behaviour, and targeted investment are reshaping competitive dynamics.
IADS Notes: Steen & Strøm’s exceptional growth in tax-free sales during 2025 mirrors a wider European trend, as highlighted in Forbes (March 2025), with Oslo’s favorable tax policies and retail investments drawing international shoppers away from London, which has faced a £640 million revenue loss due to the end of tax-free shopping, as reported by Retail Week (February and July 2025). Chinese travellers, now a major force in Oslo’s luxury retail scene, exemplify the global shift in consumer flows and preferences. The store’s strategic innovations and Oslo’s competitive positioning have enabled it to capture demand that previously favoured other European capitals, illustrating how policy and investment are redefining the luxury retail landscape (Forbes, March 2025; Retail Week, February and July 2025).
Steen & Strøm’s tax-free sales surge
Nordstrom Local to open in San Francisco
Nordstrom Local to open in San Francisco
What: Nordstrom re-enters San Francisco with a neighbourhood service hub offering online order pickup, returns, alterations, and local partnerships
Why it is important: Nordstrom’s approach demonstrates how retailers are adapting to urban challenges by prioritising service, local relevance, and experiential engagement.
Nordstrom’s launch of its first Nordstrom Local in Northern California signals a strategic shift in how the retailer serves urban customers. The 1,750-square-foot Fillmore Street hub is designed as a service-only location, providing online order pickup, returns, alterations, and personalised styling without traditional in-store merchandise. This model responds directly to consumer demand for convenience and proximity, especially in neighbourhoods where department stores have recently closed. By offering services such as gift wrapping, beauty packaging recycling, and clothing donations for local charities, Nordstrom Local integrates itself into the community while enhancing the customer experience. The opening marks a notable return to San Francisco for Nordstrom, which had previously exited the city’s retail scene, and reflects a broader industry trend of reimagining physical retail through smaller, service-driven formats. The inclusion of local art and validated parking further underscores the brand’s commitment to neighbourhood relevance and experiential retail.
IADS Notes: Nordstrom’s San Francisco opening builds on its June 2025 Brooklyn service hub launch, which emphasised omnichannel integration and community partnerships. The model mirrors Falabella’s September 2025 digital-personal shopper blend and responds to the urban retail recalibration seen with Bloomingdale’s closure in January 2025 and the broader downtown department store retreat discussed in March 2025. Community engagement, highlighted by Forbes in April 2025, is central to this strategy, positioning Nordstrom Local as a blueprint for future department store relevance.
Nordstrom Local to open in San Francisco
Impact of Trump tariffs is beginning to show in US consumer prices
Impact of Trump tariffs is beginning to show in US consumer prices
What: The impact of Trump’s tariffs is driving up US retail prices, forcing retailers to overhaul supply chains and adjust pricing strategies amid eroding consumer trust.
Why it is important: This development illustrates how trade policy is fundamentally reshaping retail pricing, supply chain management, and consumer relationships in the US market.
Trump’s sweeping tariffs are now directly influencing US retail, with persistent trade levies pushing up prices on a wide range of consumer goods. Retailers, facing mounting import costs and projected inflation of up to 1.5%, are increasingly passing these costs onto consumers, particularly in categories such as footwear and apparel. Department stores like Macy’s and Nordstrom have implemented notable price hikes, reflecting the limits of their ability to absorb additional costs. This environment of rising prices and economic uncertainty has led to significant operational changes, including supply chain restructuring, the adoption of AI-powered analytics, and a renewed focus on resilience and agility. Discretionary spending is contracting, job cuts are rising, and consumer trust is eroding, with a majority of Americans believing companies are exploiting economic conditions for profit. These shifts are fundamentally altering the relationship between retailers and consumers, as well as the competitive dynamics of the US retail sector.
IADS Notes: Since April 2025, the introduction of a 10% minimum tariff has driven widespread price increases, with department stores raising prices across key categories (Inside Retail, April 2025; CNBC, July 2025). Retailers have responded by overhauling supply chains and investing in operational resilience, while consumer trust has eroded, with 63% of Americans suspecting companies of profiteering (Forbes, July 2025). The convergence of tariffs, inflation, and weak consumer confidence has accelerated structural change, forcing the industry to adapt rapidly (The Robin Report, September 2025; Forbes, October 2025).
Impact of Trump tariffs is beginning to show in US consumer prices
Elevating retail value: The impact of Intelligent Operations
Elevating retail value: The impact of Intelligent Operations
What: Intelligent operations and workflow optimisation have directly contributed to measurable gains in retail profitability and revenue growth.
Why it is important: This development demonstrates that technology-driven workflow optimisation is now a proven lever for financial performance in retail, as confirmed by recent industry data.
The retail sector is experiencing a significant transformation as intelligent operations and workflow optimisation deliver tangible improvements in both profitability and revenue. Over the past year, retailers who have embraced advanced operational strategies, particularly those leveraging artificial intelligence and data-driven processes, have reported profit increases of up to 1.8 percentage points. This shift marks a departure from the industry’s historically modest productivity growth, with leading companies now achieving annual gains far above previous benchmarks. However, while the benefits of these technologies are clear, only a minority of retailers have managed to scale their implementations effectively, leaving substantial value unrealised due to persistent inefficiencies. The most successful retailers are those who not only adopt new technologies but also integrate them deeply into their organisational processes, creating new revenue streams and optimising core operations. As competition intensifies and margins tighten, the ability to harness intelligent operations is becoming a critical differentiator, setting apart digital leaders from those at risk of falling behind.
IADS Notes: Recent industry reports from March, May, June, July, and November 2025 consistently highlight the transformative impact of intelligent operations on retail performance. Leading retailers have achieved significant productivity and revenue gains through AI integration, but only a small fraction have scaled these solutions effectively. Persistent inefficiencies continue to erode potential profits, yet those who embrace comprehensive digital strategies and new business models are outperforming their peers and redefining industry standards.
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Agentic commerce is redefining retail—Here’s how to respond
Agentic commerce is redefining retail—Here’s how to respond
What: AI shopping agents are transforming retail by automating the consumer journey and shifting power from retailers to digital intermediaries.
Why it is important: The rapid adoption of AI shopping agents underscores the necessity for retailers to build robust operational foundations and embrace generative experience optimization to remain competitive.
Agentic commerce is rapidly redefining the retail landscape as AI shopping agents become central to the consumer journey, automating everything from product discovery to payment and delivery. This shift is fundamentally altering how consumers interact with retailers, as AI agents embedded in platforms like Perplexity, ChatGPT, and Google Gemini increasingly mediate purchasing decisions and erode direct customer relationships and brand loyalty. The rise of these agents is pushing retailers toward a new reality where traditional e-commerce websites and homepage-centric strategies are losing relevance, replaced by algorithmic mediation and data-driven engagement models. As a result, retailers face significant risks of disintermediation, with tech giants and AI platforms controlling access to consumers and diminishing the value of first-party data. To remain competitive, retailers must invest in generative experience optimization and generative paid media, shifting from SEO to strategies that prioritize visibility within AI-driven ecosystems. The urgency to develop proprietary AI-driven customer experiences and robust operational foundations is underscored by the rapid adoption of generative AI, with leading retailers reporting notable gains in revenue and efficiency. Looking ahead, the evolution toward agent-to-agent commerce—where autonomous AI agents transact with minimal human involvement—demands that retailers adapt swiftly, recalibrating their digital strategies and ensuring their platforms are optimized for both human and machine interactions.
IADS Notes: Recent industry analysis from September and October 2025 confirms that agentic commerce is shifting power structures in retail, with AI agents automating transactions and redefining consumer relationships. Reports highlight that 38% of global consumers are already using AI shopping tools, and 87% of retailers implementing generative AI have seen at least a 6% increase in revenue. The transition is validated by major retailers like Walmart and Amazon, who are actively reinventing their strategies to remain visible in AI-mediated commerce. The need for robust standards of trust and transparency, as well as the importance of generative engine optimization, is emphasized across multiple sources, with Target and other leaders preparing for agent-to-agent commerce and contextual product discovery. These developments collectively demonstrate that the window for retailers to lead in this new era is rapidly closing, making strategic adaptation an urgent imperative.
IADS Exclusive– The Saks saga: Heritage, mergers, and risk in the making of America’s new luxury giant
IADS Exclusive– The Saks saga: Heritage, mergers, and risk in the making of America’s new luxury giant
The formation of Saks Global in July 2024 was positioned as a landmark moment in luxury retail, a merger meant to give Saks and Neiman Marcus dominance in a shrinking department store business. Backed by tech allies Amazon and Salesforce, and reinforced by a partnership with Authentic Brands Group, the deals promised operational synergies, expanded customer and brand reach, and digital acceleration. So much has happened since then, and behind the headlines lies a more fragile reality. What was touted as a strategic move may, in fact, be a high-stakes gamble with a limited margin for error.
At the time of the merger, the IADS took stock of the freshly minted Saks Global company. A year or so later seemed to be the right time to pause and reflect on Saks Fifth Avenue’s history, a history marked by mergers from its inception in 1867 to its struggles in 2025.
A store is born: The foundations of Saks
Innovation, family legacy, and the first major merger that shaped Saks
In 1867, at the age of 20, Andrew Saks and his brother opened a men's clothing store in Washington, D.C. Early on, the small company implemented what would be recognised as department store innovations, such as banning bargaining, merchandise returns, and product catalogues. By 1897, Saks & Company had six stores, including one in Washington and two in New York City. In 1902, while Andrew’s sons, Horace and William, had joined the family business, they secured a long-term store lease at New York’s Herald Square. When Andrew died in 1912, Horace took over management of the company.
In 1923, Saks & Company merged with department store company Gimbel Brothers, Inc., which was owned by Horace’s cousin, setting the stage for future expansion. Having their Herald Square store rent doubled, Horace Saks and Bernard Gimbel decided to relocate their business. In September 1924, they opened New York’s iconic store at 611 Fifth Avenue, marking the first time a large retailer had established a presence in what was then primarily a residential district. Adam Gimbel (Bernard’s cousin) took over the leadership from 1926 when Horace Saks died. In 1931, a couture salon opened its doors, Salon Moderne, which soon ranked among New York’s most glamorous retail spaces. Ran by talented Adam’s wife Sophie, the salon sold her in-house designs alongside fashion from Chanel, Vionnet, Schiaparelli and more. By offering the finest quality, as well as an extraordinary programme of customer services, Saks Fifth Avenue soon became the reference for taste and elegance.
During the Great Depression, Saks proved relatively resilient thanks to its luxury positioning and the instalment options offered to customers, then a common practice among department stores. These challenging times also triggered innovation. Adam Gimbel revolutionised retail presentations by implementing creative solutions. New display techniques were introduced, along with cost-cutting practices such as using cardboard and papier-mâché instead of wood, stone and metal.
By 1940, Saks Fifth Avenue had 12 locations: four flagship stores (in New York, Chicago, Los Angeles’ Beverly Hills and Detroit) and seasonal resort stores. During World War II, in response to changing customer needs, Saks opened Navy and Army shops, which later evolved into University shops after the war, catering to the Ivy League communities.
The mall era and corporate hands
From the 1950s, the shift from downtown shopping to suburban shopping malls gained momentum, opening a new chapter for the department store. Saks Fifth Avenue's first mall location opened in 1954, at The Galleria in Fort Lauderdale (Florida). Twenty new stores opened between 1972 and 1989. While a few of the new suburban stores were still freestanding in suburbs that had a significant downtown shopping district, dozens of new Saks stores opened in malls until the 1990s.
In 1973, Saks & Company was acquired by tobacco conglomerate B.A.T. Industries PLC, forming the Batus company to run US retail operations. Implementing efficiency policies, Batus also financed store modernisations. In 1979, Saks announced that the flagship store would be remodelled, including the installation of the store’s first escalator, marking the first significant renovation in the store's history. Then, a proposal for an adjacent 36-story mixed-use tower was presented by a joint venture of Saks and Swiss Bank Corporation in 1986. Completed in 1990, the store’s selling floor was expanded by nearly 30% through the first nine storeys of the tower, the other floors allocated to offices. Also, under Batus management, Saks launched Saks Off 5th in 1990, an off‑price concept aimed at monetising clearance merchandise without compromising full‑price sales. Finally, as summarised by The New York Times in 1982, “by hiring highly qualified merchants at high salaries and allowing them free rein, Batus has scored a success at Saks Fifth Avenue, where profits have largely improved after a prolonged slide in the late 1960s and early 1970s.” That said, Batus was a mixed success for B.A.T., as Gimbels struggled.
In 1990, affiliates of Bahrain‑based Investcorp S.A. and a group of international investors acquired Saks & Company. In 1994, to intensify its presence on the West Coast, the company acquired four former I. Magnin luxury department stores in Beverly Hills, Carmel, San Diego and Phoenix. In 1996, Saks became a public company as Saks Holdings, Inc. Public equity provided a currency for the 1998 merger with Proffitt's, Inc., a Tennessee‑based department store. The resulting entity, renamed Saks, Inc., briefly oversaw 330 stores under nine flags.
A century turns, and so does Saks: dot com, financial woes and more mergers
In 2000, Saks launched Saks.com and expanded its presence internationally, opening stores in the Middle East and Mexico. In 2008, the global financial crisis struck with force. While retailers were already discounting merchandise, no one thought luxury brands would be included in this frenzy. Saks decided to cut prices on designer clothes by up to 70%. The strategy helped Saks reduce excess stock, but it took three years before the company could resume selling at closer to full price. Management used this issue as an impetus for structural change, including tighter inventory management and the establishment of the invitation-only Fifth Avenue Club, completed with private lounges and concierge services.
In 2013, Hudson's Bay Company (HBC) acquired Saks, Inc. for US$2.9 billion, marking another significant change in ownership and paving the way for synergies between its own banner and Saks. HBC Chairman Richard Baker announced the group would open up to ten Saks stores in Canada and more than twenty Saks Off Fifth outlet stores. In the end, only three full-price stores opened, whose operations were shut down in 2025 when HBC Canada went bankrupt. In 2015, Baker also launched a US$250 million project to reimagine the Fifth Avenue flagship, elevating the luxury experience.
In 2021, HBC separated Saks Fifth Avenue’s e-commerce operations into a standalone company named Saks, in partnership with Insight Partners, bringing $500 million from venture capital. The move splits the 40 physical stores from the online sales channel, aiming to position better Saks.com to compete with digital competitors. However, the move raised questions about the very relevance of such a split. The initial idea was based on a financial reasoning that Saks.com could go public at six times revenue, an idea immediately pushed by activist investor Jana Partners at Macy’s. Whatever the strategy was worth, it overlooked the role physical footprint plays in driving online sales.
In July 2024, HBC disclosed that it would acquire the previously bankrupt Neiman Marcus Group at a US$2.65 billion price tag (including debts) and fold its assets into a newly formed holding called Saks Global. Last episode of the Saks series for now, in October 2024, Authentic Brands Group (ABG) and Saks Global announced they would build a $9 billion luxury ecosystem through their new venture, Authentic Luxury Group (ALG), which is expected to account for approximately 60% of luxury distribution in the US.
Saks Global: Big bet, bigger risks
What the deal promises in scale, synergy and innovation
Considered inevitable to some and mainly driven by the need to consolidate market share in the face of the ongoing department store contraction, the Saks-Neiman Marcus landmark deal is one of the most significant mergers in the luxury retail sector in recent years, at a time when the retail industry is at a crossroads, facing changing consumer habits, digital transformation, and economic pressures.
Hence, in 2024, the merger could be seen as a strategic move to strengthen further the companies’ ability to compete against both traditional rivals, such as Bloomingdale’s and Nordstrom, as well as platforms like Net-a-porter, Farfetch and MyTheresa. By combining resources, inventory, and customer data, Saks Global would enhance both its in-store and online offerings, streamline operations by integrating technology platforms and logistics networks, eliminate duplicative roles in commercial, finance, operations, human resources, technology, and transformation teams, and negotiate more favourable terms with vendors. When it comes to real estate, the merger could optimise the store portfolios for better competitiveness and margins, potentially leading to the monetisation of overlapping locations in major cities.
Additionally, the move was expected to position the company to better adapt to the ongoing digital transformation, bringing significant financial resources and technological expertise to the new entity. Amazon and Salesforce’s minority stakes would leverage technology to modernise operations and compete in luxury e-commerce. Central to Saks Global strategy is the rollout of AI-powered personalisation, designed to create highly tailored shopping experiences across both digital and physical channels. Early results showed significant improvements in conversion rates and revenue per visitor, validating the group’s investment in advanced data analytics and machine learning. In August 2025, Saks partnered with AWS to launch Sophie, an AI-powered virtual voice assistant that handles customer inquiries while reducing agent call volume by 20%.
The merger was also said to offer other strategic advantages. Neiman Marcus attracts more affluent customers (median income is $112,800 vs. Saks' $102,900) and has access to more family-oriented shoppers (26.2% vs. 23.7% of households with children).
The merger was also said to offer other strategic advantages. Neiman Marcus attracts more affluent customers (median income is $112,800 vs. Saks' $102,900) and has access to more family-oriented shoppers (26.2% vs. 23.7% of households with children).
The price of consolidation: Why vendors, shoppers and analysts remain unconvinced
However, the merger raised concerns due to the differences in branding, clientele, and business models between Saks, primarily operating through concessions and moving further away from wholesale, and Neiman Marcus, which is more wholesale-focused. Brand differentiation appeared as a challenge, as the suggestions to reposition Saks as ‘accessible luxury’ and Neiman Marcus as ‘true luxury’ seem risky. Additionally, although a payroll decrease was on the table during the merger, the significant layoffs, particularly at Neiman Marcus’ Dallas headquarters, made headlines. Finally, with some Saks and Neiman Marcus stores close to each other and serving the same customers, deciding which ones should survive will be challenging, and exiting leases may be more costly and complex than anticipated.
Mounting challenges are exacerbated by the luxury slowdown:
- Saks Fifth Avenue sales fell 16% in Q1 2025, and combined Neiman Marcus and Bergdorf Goodman sales dropped 10% while Bloomingdale's saw 10% growth. Operating in the more favourable accessible luxury price bracket, underlying growth, Nordstrom and Bloomingdale’s have upped their game with new brands, installations, events and services designed to entice.
- Saks faces vendor payment issues for months, with $275 million in overdue bills. CEO Marc Metrick assured vendors that overdue payments would be settled in 12 instalments starting July 2025. New payment terms were announced (90 days from the receipt of inventory for all future orders), causing tension with suppliers, some pausing shipments and others filing lawsuits. However, in August 2025, many suppliers remained unpaid. These methods raise concerns among Neiman Marcus suppliers, putting at risk the stores' procurement as it diverges from the industry-standard 30-day payment terms.
- Customer service has deteriorated, with increasing complaints about damaged deliveries and delayed refunds, coinciding with significant cost-cutting measures.
- The company's attempts to streamline operations through store closures and workforce reductions have further complicated its market position.
- Recent financing efforts highlight ongoing liquidity concerns.
- Last but not least, luxury brands, the very essence of both department stores, are wary of Amazon's involvement.
Now what: Saks' balancing act
Mounting debt, risky financing
Saks is in a weak financial position. The company borrowed heavily to fund the acquisition of Neiman Marcus, and it now faces a cash crunch. In May 2025, the company had secured $350 million in financing to stabilise its operations and cope with interest payments. But mounting pressures have required additional funding, especially as Saks recorded a US$100 million loss in FY 2024. No later than June 2025, Saks secured a new $600 million debt arrangement with existing lenders, providing an immediate $300 million loan, with potential for an additional $300 million through a debt exchange. Also, the company's bonds have faced significant pressure, trading at record lows of 34.5 cents on the dollar, reflecting market concerns about its financial stability. In July 2025, the company's financial weakness led to a credit rating downgrade from S&P Global Ratings from CCC+ to CC and concerns about its $600 million financing transaction. S&P believed the company’s market position would further weaken, as illustrated by the new downgrade to CCC- in September 2025. Additionally, interest expense to cover the debt loan is expected to reach approximately $400 million over the next 12 months, which will come on top of overdue payments to vendors and new merchandise, S&P said. A reason enough to announce just days later that the company considers selling a stake in Bergdorf Goodman to inject much-needed capital and restore confidence among stakeholders. However, the sale might be challenged by the fact that only the retail operation, not the Fifth Avenue property, is considered.
When it comes to cost saving, the company projected $600 million in annual synergies over five years, with $285 million expected by the end of fiscal 2025. Illustrating this, Saks Global transitioned from four different purchase order and supply chain systems to one in early September 2025, marking a first and significant streamlining effort. However, the handover resulted in $110 to $180 million in cancelled orders, with no assurance that they can be fulfilled during the critical holiday period.
How brand reductions threaten Saks’ fashion credibility
In May 2025, Saks announced plans to eliminate 500 to 600 brands while increasing focus on strategic brand partnerships and aiming to achieve 20% of sales from higher-margin private label products. This reduction will include brands that Saks is dropping, as well as those that choose to discontinue their relationship with the retailer. While it makes sense to increase the private label share, eliminating brands can put the assortment diversity at risk. A product offer rationalisation is probably needed, but Saks must maintain the retail diversity, flair, and excitement that luxury shoppers need, with curated assortments mixing emerging labels and established global brands. Additionally, delayed vendor payments make this crucial requirement increasingly difficult to fulfil, as independent and small brands are particularly affected, many of which are lacking the cash reserves to absorb payment delays.
Trading prestige for volume
Reflecting the company’s current weakness, Saks let Nieman Marcus’ super personal shopper to the stars, Catherine Bloom leave for Nordstrom, probably taking more than $10 million in revenues with her. She is set to launch an innovative 350 sqm Catherine Bloom for Nordstrom private shopping destination in Los Angeles’ Melrose Place, bringing her eight-person team and decades of luxury retail expertise with her. In September 2025, veteran shoe force Will Cooper exited the company.
Also, Saks has undercut its status as a luxury player by partnering with less premium retail partners. Not only has Saks created a presence on Amazon, but the company has plans for the Saks men’s private brand to debut at Costco (with plans to extend to women's), raising concerns about brand dilution and questioning whether customers will continue to shop high-end brands at Saks when the nameplate is available at Costco. The deal emerges from Centric Brands, a division of Authentic Luxury Group, which will oversee the development and production of the Saks-branded merchandise for Costco. This move may weaken long-term strategic positioning at a time when Saks should allocate resources towards innovation and a clear brand story.
Authentic Luxury Group: A beacon of hope?
Authentic Luxury Group aims to expand luxury brands like Hervé Léger, Judith Leiber Couture, Vince and Barneys New York globally. The latter should see the rollout of retail locations or in-store shops, expansion of existing brand categories, and wider distribution both in the US and abroad. Besides luxury retail, Authentic Luxury Group plots hospitality, travel, experiences and entertainment, reflecting a broader shift in luxury as fashion volumes decline. While this diversification becomes essential to generate new revenue streams beyond apparel, the project leverages the partnerships with Amazon and Salesforce to scale both online and offline. Also, Authentic Luxury Group could help shift power from vendors to retailers, driving higher margins, tighter control, and exclusivity. In May 2025 at the World Retail Congress, Authentic Brand Group CEO Jamie Salter and Saks Global chairman Richard Baker emphasised distribution, data, and customer experience as cornerstones of growth.
Barely a year into its new chapter, the newly consolidated Saks Global stands in a curious position, being both a 158-year-old institution and a new experiment in platform retailing. While most retail mergers (50%+) fail outright, this one is, to some, a ‘last man standing’ strategy rather than visionary merchant leadership. Saks Global finds itself on unstable ground, with media coverage amplifying challenges that often overshadow the company’s strategic ambitions and fuel scepticism about its future. While Saks' history is a succession of mergers, consolidation alone doesn’t guarantee customer loyalty and credibility with brands. Neither does it guarantee the survival of merging companies, as exemplified by Proffitt’s locations ultimately converted into Belk stores, for example. Also, efforts to chase volume with Amazon and Costco risk undermining Saks’ luxury positioning at the very moment it needs to reinforce it. Whether it can move from survival mode to market leadership will determine if Saks Global becomes a new blueprint for luxury retail, or just another cautionary tale of overreach. Too big to fail or not, the actual test begins now.
Credits: IADS (Christine Montard)
AI will anchor tomorrow’s shopping malls
AI will anchor tomorrow’s shopping malls
What: Shopping malls are evolving through AI, flexible leasing, and sustainability, responding to new consumer behaviours and market pressures.
Why it is important: Integrating AI, new commercial models, and sustainability is now critical for mall operators to remain competitive, as shown by recent market leaders.
The retail real estate sector is undergoing a profound transformation as shopping malls adapt to the demands of a digital-first, experience-driven era. AI and advanced analytics are empowering operators to make sharper decisions, optimise layouts, and enhance both tenant and customer experiences, as demonstrated by Liverpool One’s adoption of real-time footfall analytics. Gen Z’s growing economic influence is compelling retailers to shift from traditional approaches to strategies that prioritise technology, flexibility, and social engagement. Malls are increasingly being reimagined as experience hubs, with projects like Singapore’s City Square Mall showcasing how AI, sustainability, and community-centric design can create vibrant, relevant destinations. Flexible leasing models, such as Simon Property Group’s micro-spaces, are enabling emerging brands to bridge digital and physical retail, while sustainability is becoming a foundational element of innovation and operational strategy. These developments collectively signal that the future of shopping malls lies in their ability to integrate technology, adapt to shifting consumer values, and embed sustainability at every level, ensuring continued relevance and resilience in a rapidly changing retail environment.
IADS Notes: In November 2024, Liverpool One’s use of AI analytics set a benchmark for operational optimisation in malls. February 2025 saw Retail Week highlight Gen Z’s transformative impact on retail strategies. Singapore’s City Square Mall’s April 2025 renovation illustrated the power of blending AI and sustainability for experiential retail. Simon Property Group’s micro-space initiative in September 2025 exemplified the rise of flexible, omnichannel leasing models. Finally, Euromonitor’s February 2025 report confirmed that sustainability is now a baseline for retail innovation and competitiveness.
New World Annual Report 2024
New World Annual Report 2024
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Takashimaya Financial Statements 2024
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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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Frenchfounders - Present and future of department stores in Japan
Frenchfounders - Present and future of department stores in Japan
What: Frenchfounders invited the IADS to interview Davide Sesia, Executive Vice President and Director at Sogo Seibu, to explore the situation of department stores in Japan and discuss the reopening of the Ikebukuro flagship store in Tokyo.
Why it is important: The Ikebukuro Sogo Seibu store is the second largest in terms of revenue in Kanto (Tokyo region) and the third largest in Japan, after Isetan Shinjuku in Tokyo and Hankyu Umeda in Osaka. The store has been closed for more than three years to undergo a radical restructuring under the helm of the first non-Japanese national to lead the company since its inception.
Frenchfounders - Present and future of department stores in Japan
NRF 2025: Retail’s Big Show Europe
NRF 2025: Retail’s Big Show Europe
What: Over 15,000 retail professionals gathered at the debut NRF Europe 2025 in Paris to explore unified commerce, marketplaces, payments innovation, and social commerce trends.
Why it is important: The event highlights how retailers are adapting to economic uncertainty with AI-driven scalability, social commerce disruption, and creator-led marketing, setting the tone for the future of global retail strategies.
The IADS attended the first edition of NRF Europe 2025 in Paris, which attracted over 15,000 professionals to discuss the transformation of retail amid political and economic challenges. Several major themes emerged:
- Payments innovation: PayPal emphasised the importance of localisation in building customer trust when entering new markets, addressing issues like hidden currency fees and integrating solutions with PrestaShop to ease international growth.
- Marketplace evolution: Decathlon shared its shift from a vertically integrated retailer to a global marketplace, scaling to €700 million in GMV. The company uses automation and AI for catalogue management and multilingual operations, while maintaining in-house customer support to protect brand integrity. Its future goal is transitioning into a comprehensive sports platform with both product and service integration.
- Social commerce growth: TikTok Shop showcased its rapid rise, highlighting that affluent and older customers now drive most revenue, while Gen Z fuels engagement. Its creator-led affiliate model empowers ordinary users to act as brand marketers, shifting commerce from search-based to discovery-based experiences.
- Retail startups: The House of Innovation Pavilion, led by IADS partner RetailHub, highlighted 16 startups in AI, retail media, in-store intelligence, reverse logistics, and customer insights. Featured players included Footprints AI, iF Returns, Secret View, and RealO, all offering tested retail solutions.
The report reinforced how technology, scalable platforms, and new customer engagement models are transforming retail dynamics across Europe and beyond.
Book Review: Risk Savvy: How to make good decisions
Book Review: Risk Savvy: How to make good decisions
Authors: Gerd Gigerenzer
What: Gerd Gigerenzer presents a systematic treatise on practical decision-making informed by the difference between risk and uncertainty.
Why it is important: Gerd Gigerenzer argues that most practical decisions occur under uncertainty, not calculable risk. Since probabilities are rarely known or stable, complex statistical models can mislead both experts and laypeople. Instead, Gigerenzer’s central thesis is that risk literacy enables more dependable judgments than elaborate calculations.
Book Review: Risk Savvy: How to make good decisions
Book Review: Inclusify – The power of uniqueness and belonging to build innovative teams
Book Review: Inclusify – The power of uniqueness and belonging to build innovative teams
Authors: Stefanie K.Johnson
What: Inclusify offers a practical, research-informed approach to creating workplace cultures where people feel both valued for their individuality and included as part of a team. Drawing on leadership studies, behavioural science, and real-world examples, Stefanie K. Johnson introduces “inclusifying” as an active leadership practice that involves balancing uniqueness and belonging. Rather than relying on broad diversity goals or vague culture statements, the book provides a clear path toward inclusive leadership.
Why it is important: Diversity initiatives often focus on who is at the table, but inclusion determines whether those voices are heard and valued. Without psychological safety and a culture of belonging, diverse teams risk becoming disengaged or ineffective. This book addresses a critical gap by helping leaders understand how their everyday behaviours and team dynamics can either promote or prevent inclusion. In a workplace landscape where innovation, retention, and trust depend on culture, Inclusify offers a timely and grounded approach.
Book Review: Inclusify – The power of uniqueness and belonging to build innovative teams
Events
Member News
El Corte Inglés renews its commitment to Spanish tennis
El Corte Inglés renews its commitment to Spanish tennis
What: El Corte Inglés renews its partnership with the Royal Spanish Tennis Federation to support Spanish tennis and promote the Davis Cup playoff in 2025.
Why it is important: This renewal reflects El Corte Inglés’s ongoing strategy to build brand value and customer loyalty through high-profile sports partnerships, as seen in recent cultural and sporting sponsorships.
El Corte Inglés has extended its partnership with the Royal Spanish Tennis Federation for another year, reinforcing its commitment to Spanish tennis during a pivotal season that includes the Spain-Denmark Davis Cup playoff in Marbella. By leveraging its prominent shopping centres in Madrid and Andalusia to promote the event, the retailer strengthens its role as a key supporter of national sports. This collaboration is not only a testament to El Corte Inglés’s loyalty to the sport but also a strategic move to deepen its connection with Spanish society, fostering experiences that unite fans and the national team. The partnership is emblematic of the company’s broader approach to community engagement and experiential marketing, using major sporting events to enhance customer loyalty and brand perception. Such initiatives underscore El Corte Inglés’s ambition to remain at the forefront of retail by integrating cultural and sporting values into its business model, ensuring c ontinued relevance and resonance with its customer base.
IADS Notes: El Corte Inglés’s renewed sponsorship of the RFET aligns with its broader strategy of cultural and sports engagement, as seen in its support for the Fallas festival (28 February 2025, Press Release), the San Silvestre Vallecana race (11 October 2024, Press Release, and its strong brand reputation highlighted in the EY Retail Performance Ranking (28 January 2025, Modaes: link). These initiatives are further reinforced by its focus on exclusive experiences and innovative event-driven marketing.
El Corte Inglés becomes official sponsor of San Diego Comic-Con Malaga
El Corte Inglés becomes official sponsor of San Diego Comic-Con Malaga
What: El Corte Inglés sponsors San Diego Comic-Con Malaga, integrating retail offerings and exclusive experiences to drive engagement at the first SDCC held outside the US.
Why it is important: This initiative demonstrates how cultural sponsorships and experiential retail strategies can strengthen brand relevance and boost customer engagement.
El Corte Inglés’ sponsorship of San Diego Comic-Con Malaga marks a significant step in the retailer’s ongoing evolution toward experiential and culturally integrated retail. By aligning itself with the first-ever SDCC held outside the United States, El Corte Inglés not only amplifies its brand visibility but also creates a direct link between its retail offerings and a major international pop culture event. The event’s diverse programming, featuring over 300 hours of activities and appearances by global celebrities such as Arnold Schwarzenegger, Luke Evans, and Pedro Alonso, is designed to attract more than 100,000 fans. El Corte Inglés leverages this opportunity by integrating its product categories—comics, board games, and video games—into the event’s activities, while simultaneously launching Comic Fortnight promotions and exclusive discounts. This approach not only drives footfall and online traffic but also positions the retailer as a destination for both entertainment and commerce. The strategy reflects a broader industry trend where retailers use cultural engagement and experiential marketing to foster deeper customer relationships and maintain relevance in a rapidly changing market.
IADS Notes: [text]
El Corte Inglés becomes official sponsor of San Diego Comic-Con Malaga [add link, bold, and italiscised to turn into a button : to be deleted]
John Lewis appoints new director of merchandising
John Lewis appoints new director of merchandising
What: John Lewis has appointed Anna Milne as director of merchandising, reinforcing its leadership team amid a major transformation and fashion strategy overhaul.
Why it is important: This appointment reflects John Lewis’s commitment to strengthening its merchandising expertise as it pursues ambitious growth and transformation in a competitive retail market.
The appointment of Anna Milne as director of merchandising at John Lewis in October 2025 marks a pivotal moment in the retailer’s ongoing transformation. This leadership move is closely aligned with John Lewis’s accelerated fashion strategy, which saw the addition of 100 new premium brands and exclusive collaborations in August 2025 as part of an £800 million turnaround programme. The retailer’s focus on merchandising leadership and brand positioning is further supported by plans to double its fashion business, announced in July 2025, and the recruitment of expert talent to drive this ambition. The August 2025 appointment of Dom McBrien as chief digital and omnichannel officer underscores the importance of digital innovation and leadership agility in John Lewis’s growth strategy. Under Peter Ruis’s direction, the company has also restructured its buying and merchandising teams, emphasising brand curation and customer engagement. These strategic changes and investments highlight John Lewis’s determination to reinvent the department store model and secure its relevance in a rapidly evolving retail landscape.
IADS Notes: Anna Milne’s appointment as director of merchandising in October 2025 (Retail Week) is part of a broader leadership renewal, supporting John Lewis’s addition of 100 new premium brands and exclusive collaborations in August 2025 (Retail Gazette). The July 2025 announcement to double the fashion business and the August 2025 hiring of Dom McBrien as chief digital and omnichannel officer (The Retail Bulletin) further reinforce this transformation. Under Peter Ruis, the retailer has restructured its merchandising teams and focused on brand curation and customer engagement, as outlined in October 2024 (Retail Week)
Michael Chalhoub took the stage at RLC Fashion Summit
Michael Chalhoub took the stage at RLC Fashion Summit
What: At the RLC Fashion Summit in Milan, Michael Chalhoub outlined how the Middle East is emerging as a global growth engine for luxury, driven by youthful demographics, local investment, and a focus on quality and customer experience.
Why it is important: The session underscores how demographic advantages, investment in infrastructure, and a focus on quality are enabling the Middle East to outpace mature markets in luxury growth.
At the RLC Fashion Summit in Milan, Michael Chalhoub, CEO of Chalhoub Group, described how the Middle East is defying global luxury’s slowdown, with beauty and fashion growing at high single- to low double-digit rates. He emphasized that the region’s youthful, affluent, and digitally savvy population—65% under 35 in Saudi Arabia—demands authentic engagement, personalized experiences, and seamless integration of technology. Chalhoub Group’s growth playbook combines concept innovation (like Level Shoes), major investments in logistics and talent (including a 50-hectare Riyadh distribution center and Chalhoub University), and a regional platform that balances local specificity with scale. The group’s expansion now extends to Latin America and sub-Saharan Africa, positioning it as a stabilizing partner for global brands. Chalhoub stressed that quality—across product, experience, and people—is the defining trend, and that brands must invest in experiences that make customers want to shop locally. He advised global brands to move early, localize, and invest in talent, as the Middle East is no longer a peripheral market but a core growth engine for luxury worldwide.
IADS Notes: [text]
Department Stores
Breuninger opened a new flagship in Hamburg and featured the grand opening in a pic report by IADS
Breuninger opened a new flagship in Hamburg and featured the grand opening in a pic report by IADS
What: Breuninger opened its first North German store in Hamburg's HafenCity on April 8, offering curated premium and affordable luxury brands across three experiential levels. The IADS prepared a pic report for you, enjoy!
Why it is important: This launch strengthens Breuninger's omnichannel strategy in a key urban market, reflecting the retailer's evolution through digital transformation and physical expansion.
The 13,000-square-metre store features exclusive brands, one of Hamburg's largest premium shoe departments, and services like Click & Collect and private shopping, making shopping an elevated experience.
Printemps NYC unveils innovative department store concept
Printemps NYC unveils innovative department store concept
What: Printemps opened its debut U.S. location in Manhattan's Financial District on March 21st, marking a significant shift in the department store model by prioritising hospitality over traditional sales metrics.
Why it is important: This approach aims to redefine department stores by emphasiSing customer experience and dwell time, aligning with broader retail trends.
The 54,500-square-foot store features a vibrant space with food venues by chef Gregory Gourdet and a historic Red Room. It transforms shopping into a memorable experience.
Galeries Lafayette Lyon Bron transformed and expanded
Galeries Lafayette Lyon Bron transformed and expanded
What: Galeries Lafayette in Lyon Bron has reopened with a impressive 9,200 m² extension.
Why it is important: This renovation signifies a significant step in revitalizing the store, enhancing its offerings, and preparing for further expansion by 2026.
The iconic store, a Lyon landmark since 1964, now boasts revamped spaces and contemporary designs as part of a transformation project exceeding 100 million euros.
El Palacio de Hierro opens its stunning new store in León
El Palacio de Hierro opens its stunning new store in León
What: El Palacio de Hierro, a luxury department store chain, has officially opened its new store in León!
Why it is important: This opening highlights the brand's ongoing commitment to growth and its dedication to providing high-end consumers with a premium shopping experience in the León region.
Located inside the Plaza Mayor shopping center, the new El Palacio de Hierro spans over 18,000 square meters across three beautifully designed levels. The store features an exceptional mix of luxury brands, stunning interiors, and innovative services, including a fully operational "click&collect" point to enhance the customer experience.
This marks the 14th El Palacio de Hierro store in Mexico, further solidifying the brand's leadership in the luxury retail market.
Check out the photos of the new El Palacio de Hierro store in Leon
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
CISA and NCSC release directives to address multiple Cisco platforms exploited by threat actors
CISA and NCSC release directives to address multiple Cisco platforms exploited by threat actors
What: Advanced malware targeting Cisco platforms has triggered emergency directives from US and UK authorities, highlighting critical risks for retailers relying on these systems.
Why it is important: The coordinated response by CISA and NCSC reflects the growing regulatory and operational pressure on retailers to address evolving cyber threats and safeguard business continuity.
The coordinated emergency directives from CISA and the NCSC in response to active exploitation of zero-day vulnerabilities in Cisco networking devices mark a critical escalation in the cyber threat landscape for the retail sector. These vulnerabilities, exploited by sophisticated malware such as RayInitiator and LINE VIPER, expose retailers to heightened risks of network compromise, data exfiltration, and operational disruption. The urgency of the directives, which call for immediate disconnection of obsolete devices and rapid deployment of security updates, highlights the sector’s dependence on robust IT infrastructure and the severe consequences of both malicious attacks and technical failures. Recent industry data reveals that only a minority of retailers have mature digital core security, while high-profile breaches and outages have resulted in substantial financial losses and increased cyber insurance premiums. The retail industry’s response is shifting from basic prevention to comprehensive, resilience-driven strategies, including strategic partnerships and enhanced incident response, to address the evolving sophisticati
IADS Notes: The recent CISA and NCSC directives echo the findings from RH-ISAC in April 2025, which reported a surge in ransomware, phishing, and supply chain attacks, with third-party breaches accounting for 41% of incidents and average ransomware losses reaching $1.4 million. The catastrophic $5.4 billion Crowdstrike outage in March 2025, as detailed by Inside Retail, underscores the sector’s reliance on resilient IT infrastructure and rapid recovery. The Retail Bulletin’s August 2025 analysis found only 18% of retailers have mature digital core security, while high-profile breaches at M&S and Co-op, reported by Inside Retail in May 2025, have driven a 10% rise in cyber insurance premiums and forced a shift toward resilience-focused strategies. Retail Week’s July 2025 coverage of Co-op’s cybersecurity partnership highlights the industry’s move toward collaborative, proactive investment in cybersecurity.
CISA and NCSC release directives to address multiple Cisco platforms exploited by threat actors
RH-ISAC: Microsoft warns of active exploitation of SharePoint via ToolShell zero-day
RH-ISAC: Microsoft warns of active exploitation of SharePoint via ToolShell zero-day
What: Microsoft identifies active exploitation of SharePoint's ToolShell zero-day vulnerability, enabling unauthenticated attackers to gain full remote control of retail servers and extract cryptographic secrets.
Why it is important: The timing of this threat is especially significant as retailers struggle with mounting cyber insurance costs and recovery from recent high-profile breaches, potentially creating a perfect storm for the industry.
Microsoft has uncovered widespread exploitation of a critical SharePoint vulnerability chain known as ToolShell (CVE-2025-53770), which enables unauthenticated attackers to compromise on-premises servers. The vulnerability, demonstrated publicly on social media, allows attackers to bypass authentication through a specific HTTP Referrer header manipulation during POST requests. Once access is gained, attackers can extract the SharePoint server's MachineKey configuration, including the crucial ValidationKey, which can then be used to craft valid payloads for arbitrary command execution without administrative credentials. This zero-day exploit poses a particular threat to retail and hospitality sectors, where SharePoint is extensively used for internal collaboration, document management, and customer-facing portals. The potential for complete compromise of critical internal data, intellectual property theft, and operational workflow disruption has prompted Microsoft and CISA to issue urgent warnings, with patches now available for affected versions.
IADS Notes: The emergence of the ToolShell SharePoint vulnerability in July 2025 represents a critical escalation in retail cybersecurity threats, following a year of unprecedented incidents. In April 2025, M&S's GBP 700 million market value loss from a cyber attack demonstrated how digital vulnerabilities can severely impact retail operations. The incident's connection to third-party suppliers mirrors the current SharePoint exploit's potential to compromise entire retail networks through a single entry point. This risk is particularly concerning given that March 2025 saw a single security update failure cause GBP 5.4 billion in losses across Fortune 500 companies. The retail sector's vulnerability to such threats has already driven a 10% increase in cyber insurance premiums by May 2025, while industry data from April 2025 shows ransomware accounting for 30% of retail security incidents. With 41% of breaches now occurring through third-party providers, this unauthenticated SharePoint exploit presents an unprecedented risk to retail organizations' operational integrity and data security.
RH-ISAC: Microsoft warns of active exploitation of SharePoint via ToolShell zero-day
RH-ISAC: 2025 CISO Benchmark Report
RH-ISAC: 2025 CISO Benchmark Report
What: Global CISO survey reveals critical security gaps in retail sector, with 82% of companies lacking strong digital core security maturity while facing increased ransomware and supply chain threats.
Why it is important: As recent attacks on major retailers demonstrate, the findings highlight an urgent need to strengthen cybersecurity foundations, with ransomware and supply chain vulnerabilities now directly impacting market valuations and customer trust.
The 2025 CISO Benchmark Report reveals significant vulnerabilities in retail cybersecurity infrastructure, with only 18% of companies achieving frontrunner status in digital core security maturity. The survey of 171 CISOs identifies ransomware (70%) and supply chain attacks (58%) as the primary security risks, while budget constraints (71%) and competing IT priorities (69%) emerge as major challenges. Business continuity has become the top cybersecurity priority, rising four places from 2024, reflecting the sector's growing focus on operational resilience. The report highlights a significant shift in security workforce composition, with contractors comprising 52% of InfoSec teams, rising to 60% among frontrunners. Despite these challenges, the sector shows promising developments in NIST Framework adoption, with scores rising 25% since 2024 and frontrunners outperforming peers by 12%. The findings emphasise the critical need for retailers to secure their digital core while balancing rapid technological advancement with robust security measures.
IADS Notes: The 2025 CISO Benchmark Report's findings are starkly validated by recent events in the retail sector. The report's emphasis on ransomware as the top security risk (70% of respondents) was demonstrated by the devastating Marks & Spencer attack in April 2025, which wiped £700 million off their market value. The importance of supply chain security, cited by 58% of respondents, was highlighted when both Harrods and Co-op suffered breaches through third-party vulnerabilities in May 2025, with Co-op's incident affecting up to 20 million customers. The report's revelation that 82% of companies lack strong security maturity aligns with the March 2025 Crowdstrike incident, where a single security update failure resulted in £5.4 billion in losses across Fortune 500 companies. These incidents have transformed the cyber insurance landscape, driving a 10% increase in premiums across the UK retail sector, while demonstrating the report's key finding that business continuity has become the top cybersecurity priority.
RH-ISAC: Sainsbury’s rewards programme targeted by malicious actor for monetary gain
RH-ISAC: Sainsbury’s rewards programme targeted by malicious actor for monetary gain
What: Cybercriminals target Sainsbury's loyalty programme members through unauthorised access and point redemption scheme.
Why it is important: This incident reveals a critical security challenge for retailers as loyalty programmes evolve from simple point-collection systems to valuable digital assets requiring sophisticated protection measures.
Sainsbury's Nectar loyalty programme members are experiencing a significant surge in points theft, with one customer reporting the loss of two years' worth of accumulated points. This follows an earlier investigation that uncovered GBP 63,000 worth of stolen Nectar points over a one-year period, prompting the implementation of a "lock" feature for all accounts. The primary attack method involves unauthorised access and rapid redemption of points at unfamiliar locations, suggesting the use of credential stuffing, phishing, or security vulnerability exploitation. While Nectar maintains that only a small proportion of accounts are affected and highlights protective measures like the "Spend Lock" feature, the recurring incidents indicate an ongoing targeted campaign against one of Europe's largest loyalty programmes. Security experts are particularly concerned about the timing of these attacks during peak accumulation periods like Christmas.
IADS Notes: The Sainsbury's Nectar points theft incident in June 2025 aligns with a broader pattern of sophisticated cyber attacks targeting retail loyalty programs. This follows May 2025's revelation of a complex cybercrime supply chain specifically targeting retail loyalty programmes, where criminals sell stolen credentials for as little as GBP 5. The timing is particularly significant as it coincides with industry data showing ransomware accounting for 30% of retail security incidents, with average losses reaching GBP 1.4 million per attack. The vulnerability of loyalty programs has become increasingly critical as retailers expand their digital engagement strategies, while the Co-op's recent cyber attack affecting 20 million customers demonstrates the scale of potential breaches in major retail loyalty systems.
RH-ISAC: Sainsbury’s rewards programme targeted by malicious actor for monetary gain