What: NRF forecasts U.S. holiday retail sales will surpass $1 trillion for the first time in 2025, with growth of 3.7% to 4.2% over last year despite economic headwinds.

Why it is important: The shift toward experiential and curated retail strategies is essential as traditional discounting loses effectiveness in a saturated market.

The US retail sector is poised to reach a significant milestone in 2025, with holiday sales expected to exceed $1 trillion for the first time, reflecting a projected growth rate of 3.7% to 4.2% over the previous year. This achievement comes despite a challenging economic environment marked by persistent inflation, rising tariffs, and the threat of a federal government shutdown. Consumers remain fundamentally resilient, continuing to drive economic activity even as they become more value-conscious, prioritising holiday gifts while seeking savings in nonessential categories. Retailers are responding to these pressures by streamlining operations and scaling back seasonal hiring, with projections for temporary workers at their lowest since 2008. The evolving landscape is further complicated by generational shifts in spending, as younger consumers cut back while older generations maintain or increase their holiday budgets. These dynamics underscore the adaptability of both retailers and consumers, as the industry navigates volatility while still achieving record-breaking sales.

IADS Notes: Industry sources from NRF and Deloitte in November and September 2025 confirm the historic sales milestone and continued consumer resilience, while Forbes highlights the impact of tariffs, inflation, and reduced seasonal hiring on retail strategies. PwC’s September 2025 report emphasises generational divides and the growing importance of value-driven, cautious spending, illustrating how retailers are adapting to economic uncertainty while maintaining strong holiday performance.

NRF expects holiday sales to surpass $1 trillion for the first time in 2025

What: Macy’s is redefining the Golden Quarter by combining immersive experiences, new products, and emotional engagement to stand out amid widespread discounting.

Why it is important: The shift toward experiential and curated retail strategies is essential as traditional discounting loses effectiveness in a saturated market.

As the Golden Quarter extends and discount fatigue sets in, Macy’s is setting a new standard for holiday retail by blending immersive experiences, product innovation, and emotional engagement. Rather than relying solely on early and aggressive promotions, Macy’s “100 Days to Christmas” campaign introduces a significant proportion of new products and transforms stores into festive destinations, complete with pop-ups, food vendors, and interactive events. This approach positions Macy’s as the emotional heart of the season, offering customers reasons to visit beyond just price. In a climate where economic pressures and promotional saturation make it difficult for any single discount to stand out, Macy’s strategy demonstrates the power of combining value with exclusivity, curated assortments, and memorable experiences. Loyalty programmes and personalised perks further enhance customer engagement, helping the retailer maintain margins and foster long-term loyalty. The evolving holiday landscape shows that retailers who prioritise experience and differentiation are best positioned to succeed when every competitor is on sale.

IADS Notes: Recent industry coverage, including Inside Retail and Retail Dive in November and September 2025, highlights Macy’s leadership in experiential and product-focused holiday strategies. Nordstrom’s holiday campaign and BCG’s December 2024 analysis confirm that traditional loyalty programs and discounting are losing impact, while PwC’s September 2025 report emphasises the need for value, meaning, and flexible engagement to win over today’s consumers.

What retailers can learn from Macy’s approach to the Golden Quarter

What: Ikea and Best Buy are partnering to create in-store planning and shopping experiences, blending furniture, appliances, and expert advice across 10 U.S. locations.

Why it is important: This collaboration reflects a broader industry trend of strategic partnerships and experiential retail, enabling brands to reach new audiences and enhance customer engagement.

Ikea has entered into its first U.S. shop-in-shop partnership with Best Buy, launching curated planning and shopping experiences in 10 stores across Texas and Florida. These in-store Ikea shops feature immersive vignettes that combine Ikea’s home furnishings with Best Buy’s appliances, allowing customers to design kitchen and laundry spaces while receiving guidance from both Ikea and Best Buy staff. Select locations also serve as free pick-up points for Ikea products purchased online, enhancing omnichannel convenience. This collaboration exemplifies the growing trend of retailers leveraging strategic partnerships and store-in-store concepts to drive foot traffic, differentiate their offerings, and create engaging, cross-category experiences. The initiative coincides with Best Buy’s holiday push, which includes immersive tech showcases and AI-powered experiences, intensifying competition for consumer attention and setting new standards for experiential retail in the U.S.

IADS Notes: Ikea’s partnership with Best Buy to launch shop-in-shop concepts across 10 U.S. locations marks a significant evolution in retail collaboration, blending home furnishing expertise with technology leadership to create a comprehensive, cross-category shopping experience (Retail Dive, August 2025). This initiative is part of Ikea’s broader strategy of retail format innovation and urban accessibility, as seen in its major investments in city-center locations like London’s Oxford Street and experiential pop-ups such as the ‘Hus of Frakta’ (Financial Times, May 2025; Fashion United, November 2024). The collaboration mirrors a wider industry trend of retailers leveraging partnerships and store-in-store models to drive foot traffic, differentiation, and mutual growth, as illustrated by Magasin du Nord’s Lindex shop-in-shop (Press Release, March 2025). These developments are underpinned by the growing importance of omnichannel integration and experiential retail, with smart store technologies and engaging environments now central to customer experience and operational efficiency (Journal du Net, January 2025; The Robin Report, January 2025). The timing of the Ikea-Best Buy partnership, coinciding with Best Buy’s holiday innovation push and the sector’s competitive race for digital engagement, highlights the strategic value of such alliances in today’s rapidly evolving retail landscape (Store Brands, November 2025).

Best Buy opens first-ever in-store Ikea shops in select locations 

What: Amazon’s legal action against Perplexity’s AI agents signals a power struggle over the future of automated commerce.

Why it is important: The dispute underscores the risks and opportunities of agentic AI, aligning with documented shifts in retail power structures and customer engagement.

Amazon’s cease and desist letter to Perplexity over its AI purchasing agents marks a defining confrontation in the evolution of retail. As AI agents automate shopping tasks and mediate transactions, they threaten to disintermediate retailers, shifting the customer relationship from platform to agent. Amazon’s resistance is rooted in the desire to maintain control over the shopping journey, data, and monetisation through ads and upsells, while Perplexity argues for user empowerment and seamless automation. This legal standoff highlights broader industry trends: the rapid adoption of agentic commerce, the reconfiguration of retail power structures, and the growing importance of transparency and trust. Retailers are compelled to rethink their digital strategies, optimise for AI-driven discovery, and address new operational and legal risks. Despite the promise of improved customer satisfaction and efficiency, the sector faces significant challenges in scaling these technologies and safeguarding brand identity. The outcome of this dispute will shape the standards and strategies for AI-driven retail in the years ahead.

IADS Notes: In November 2025, the Financial Times highlighted how agentic commerce is shifting retail power from traditional platforms to AI intermediaries, forcing brands to reconsider their digital strategies and customer engagement. September 2025 articles from Journal du Net examined the reconfiguration of retail power structures and the automation of e-commerce transactions by AI agents, emphasising the urgent need for trust and transparency. The same month, Journal du Net also explored the operational and legal challenges of scaling agentic AI, while in January 2025, Hugging Face detailed the complexities of implementing these technologies in retail. Finally, July 2025 coverage from Journal du Net confirmed that agentic AI is improving customer satisfaction and service efficiency, even as the sector navigates significant risks and the need for responsible innovation.

Amazon vs. Perplexity: Welcome to the battle for the future of commerce

What: Saks Off 5th will close nine stores in early 2026, focusing on high-performing locations and optimising its retail footprint.

Why it is important: This move reflects a broader trend of luxury retailers optimising store networks and reallocating resources to high-potential locations.

Saks Off 5th, the off-price division of Saks Global, is set to close nine of its 79 stores beginning in January 2026, following a comprehensive review of market dynamics, lease expirations, and customer behaviour. The closures are part of a broader strategy to concentrate on high-performing and high-potential locations, with the company emphasising ongoing investments in these stores to enhance customer experience and drive performance. The decision to vacate the 57th Street Manhattan location was influenced by impending construction and property redevelopment, reflecting the increasing impact of real estate changes on retail strategies. Saks Off 5th is offering transfer opportunities and severance packages to affected employees, demonstrating a commitment to workforce management during this transition. These store closures coincide with recent management changes at Saks Global, including the appointment of Genny Siller as senior vice president and general manager, and the shift of Kim Miller to chief customer officer, following the departure of Emily Essner. The company’s actions underscore a deliberate approach to optimising its store footprint and adapting to evolving market conditions.

IADS Notes: Saks Off 5th’s store closures and the vacating of its 57th Street location mirror Saks Global’s post-merger strategy to rationalise its retail network, as highlighted in WWD (September 2025). These actions are consistent with the closure of other flagship stores, such as Palm Beach (The Sun, January 2025), and reflect a broader industry shift toward consolidating store networks and investing in high-performing sites, as discussed in WWD (February 2025). The operational changes are supported by significant organisational restructuring and leadership transitions reported in WWD (April 2025; October 2025), illustrating Saks Global’s commitment to long-term transformation and efficiency.

Saks Off 5th to close nine stores

What: JD.com’s $2.5 billion acquisition of Ceconomy, parent of MediaMarkt and Saturn, positions the Chinese e-commerce giant to reshape Europe’s consumer electronics retail sector and directly challenge Amazon’s dominance.

Why it is important: This acquisition demonstrates the growing influence of Chinese e-commerce in Europe and signals a major shift in the region’s retail power dynamics, as confirmed by recent expansions and regulatory responses.

JD.com $2.5 billion bid for Ceconomy, which owns MediaMarkt and Saturn, marks a transformative moment for European consumer electronics retail. By integrating its advanced logistics and digital infrastructure with Ceconomy’s extensive store network, JD.com aims to redefine the omnichannel experience and accelerate innovation in a sector facing structural challenges. This move is part of JD.com’s broader international strategy, following its recent expansion into France and ongoing efforts to compete with Amazon. The acquisition comes at a time when European authorities are tightening regulations in response to the influx of Asian e-commerce, introducing new customs fees and stricter compliance measures. Meanwhile, the European retail sector, particularly in Germany, is experiencing significant financial distress due to weak consumer spending and increased competition. JD.com’s entry not only intensifies the competitive landscape but also tests the adaptability of both Chinese and European retail models in an era of rapid digital transformation and regulatory scrutiny. 

IADS Notes: JD.com’s international expansion, highlighted by its strong financial results and the Ceconomy acquisition, reflects a wider trend of Chinese e-commerce platforms entering Europe, as noted in March 2025 (“JD.com reports USD 1.4 billion profit as Chinese consumer spending rises,” Tech in Asia) and October 2025 (“To compete with Amazon, China's JD.com launches its e-commerce site in France,” LSA Conso). The competitive landscape is rapidly evolving, with JD’s logistics and digital strengths challenging Amazon’s position, while regulatory responses to the influx of Asian e-commerce are intensifying, as seen in April 2025 (“Asian parcel invasion: Europe under pressure, France prepares its response,” Journal du Net) and August 2025 (“When geopolitics hits the shopping cart – how trade disputes are changing retail,” GDI). These developments are unfolding as the European retail sector faces record levels of financial distress, particularly in Germany, as reported in June 2025 (“Retail emerges as most distressed sector in Europe,” BoF), underscoring the urgency for innovation and adaptation in the face of global competition and regulatory change.

JD.com to take over Ceconomy, the parent company of German giants MediaMarkt and Saturn

What: M&S is expanding its partnership with Zalando to use the ZEOS logistics solution for its entire online direct-to-consumer business in continental Europe.

Why it is important: The move highlights the growing importance of scalable, capital-light models and technology-driven logistics in international retail expansion.

M&S is set to deepen its collaboration with Zalando by adopting the ZEOS logistics platform for all its direct-to-consumer online operations across continental Europe. This strategic shift follows a period of rapid online growth, with M&S reporting a 131% year-on-year increase in Zalando-facilitated sales. By integrating ZEOS, M&S aims to streamline inventory management through a unified stock pool and advanced order management system, covering fashion, home, and beauty products. The partnership is expected to enhance the customer experience by reducing delivery times by up to three days and improving returns processes. M&S anticipates that these operational improvements will drive a sales uplift of up to 30%, halve logistics costs, and boost operating margins. This move is central to M&S’s ambition to build a global omnichannel business using scalable, capital-light models and leveraging the expertise of strategic partners to support international growth and operational efficiency.

IADS Notes: The expanded logistics partnership between M&S and Zalando, leveraging the ZEOS B2B solution, reflects a broader acceleration in cross-border e-commerce logistics across Europe, as highlighted by Zalando’s 2024 results and its ongoing fulfilment innovation with Next (March 2025). This move is emblematic of a wider industry trend, with the European E-commerce Report (October 2025) noting that technology-driven logistics and AI-powered inventory management are delivering tangible gains in profitability and customer experience, though only a select group of retailers have managed to scale these solutions effectively. M&S’s strategy to build a capital-light, scalable omnichannel business is further underscored by its focus on digital resilience and supply chain modernisation following a significant cyber-attack, as detailed in Drapers (September 2025) and Retail Week (July 2025). The partnership with Zalando not only positions M&S to cut delivery times and improve margins but also aligns with the industry’s shift toward intelligent operations and collaborative models that drive operational efficiency and international growth.

M&S taps Zalando’s B2B unit to handle European orders

What: Walmart has introduced a suite of AI-driven features—including in-store savings, AR shopping, and digital party planning—to enhance customer convenience and engagement both online and in stores.

Why it is important: By integrating advanced AI and AR capabilities, Walmart is redefining the holiday shopping journey and raising consumer expectations for both online and in-store retail.

Walmart is transforming the holiday shopping experience with a comprehensive rollout of AI-powered tools designed to make gift-giving faster, easier, and more personalized. The retailer’s latest features include an in-store savings tool that highlights local deals, enhanced search and navigation for real-time product availability, and wish list management that organizes shopping trips by aisle. AI-driven innovations such as the Sparky digital assistant for party planning, audio summaries of product reviews, and immersive AR-powered 3D shopping scenes further elevate the customer journey, blending convenience with inspiration. Walmart’s partnership with ChatGPT enables contextual, multimedia, and conversational commerce, moving beyond traditional search bars to proactive, agentic shopping experiences. Data shows that app users spend 25% more per trip, underscoring the commercial impact of digital engagement and personalization. As these technologies become central to both online and physical retail, Walmart is setting a new standard for customer experience and intensifying competition across the sector.

IADS Notes: Walmart’s launch of AI-powered shopping tools and its landmark partnership with OpenAI in October 2025 mark a pivotal shift in retail, as the company moves beyond traditional search bars to embrace personalized, conversational, and agentic commerce (Retail Week, October 2025; Retail Dive, October 2025). This strategic alliance exemplifies the sector’s broader pivot toward AI-driven innovation, with major retailers racing to adopt generative AI solutions that transform product discovery, customer engagement, and operational efficiency. Walmart’s integration of features such as Instant Checkout within ChatGPT, hyper-personalization, AR/VR, and AI-powered party planning reflects the industry’s rapid evolution toward seamless, multimedia, and predictive shopping experiences (Inside Retail, March 2025; The Robin Report, December 2024). These developments are driving measurable commercial impact, with digital engagement and AI-driven personalization contributing to record-breaking results, increased e-commerce penetration, and higher average spend among app users (WWD, February and November 2025). The competitive landscape is intensifying as retailers like Nordstrom also invest in digital innovation for the holiday season, underscoring the urgency for robust digital adaptation and strategic tech partnerships to remain relevant and capture consumer attention in an AI-first retail environment.

Walmart Rolls Out New AI Tools

What: Marks & Spencer’s profits fell 55% after a cyber-attack shut down its online business for six weeks.

Why it is important: This case demonstrates the severe financial and operational risks cyber-attacks pose to major retailers, reinforcing the need for robust digital resilience.

Marks & Spencer experienced a dramatic 55% drop in profit before tax for the first half of 2025, falling to £184.1m, following a cyber-attack that forced the closure of its online business for six weeks. The disruption led to a significant decline in fashion, home, and beauty sales, with online operations only fully restored by August. CEO Stuart Machin initially estimated the attack would cost the business £300m, though recovery efforts and insurance are expected to offset some losses. Despite the setback, M&S continued to invest in new stores, supply chain modernisation, and technology infrastructure, aiming to restore profitability by year-end. Food sales, less affected due to their in-store nature, rose by 7.8%, while the Ocado food delivery partnership posted a small loss. The phased recovery of online services and the return of third-party brands highlighted the complexity of restoring digital operations. The incident, linked to organised cybercrime groups, also resulted in customer data theft, underscoring the persistent threat to retail security.

IADS Notes: The M&S cyber-attack, which led to a £136mn profit hit and a six-week online shutdown, reflects a broader trend in retail, as seen in sector reports from May to November 2025. The Financial Times (November 2025) details the financial and reputational damage to M&S, while Retail Week (September and July 2025) and Retail Insight Network (May 2025) highlight similar incidents at Co-op and Harrods, exposing acute financial and operational risks from cybercrime and third-party vulnerabilities. Inside Retail (June 2025) emphasises the sector’s shift toward resilience and rapid recovery, with robust cybersecurity and technology investment now essential for business continuity and customer trust.

M&S cyber-attack slashed Q1 profits, 55% drop in profit before tax

What: Following French prime minister suspension proceedings,Shein has temporarily suspended its marketplace in France to review compliance and strengthen consumer protection following government scrutiny.

Why it is important: The news reflects the growing importance of brand reputation management in the face of legal and consumer challenges.

Shein has decided to temporarily suspend its marketplace in France, a move prompted by heightened government scrutiny and a commitment to reinforcing consumer protection. The company’s French director of external relations, Quentin Ruffat, emphasised that this decision allows Shein to strengthen its responsibility mechanisms and ensure all products meet legal and safety standards. The suspension is being overseen by Shein’s Marketplace Integrity Taskforce, which is conducting a comprehensive audit of product listings, enhancing vendor controls, and increasing platform surveillance. This pause is intended to guarantee full compliance with French legislation and the highest level of consumer protection, while also opening a dialogue with French authorities to address their concerns. The decision follows a series of regulatory actions and public controversies, underscoring the operational and reputational risks faced by global e-commerce platforms operating in increasingly regulated environments. Shein’s proactive approach signals a broader shift in the industry, where compliance and consumer trust have become central to sustaining market presence and brand credibility. 

IADS Notes: Shein’s marketplace suspension in France is part of a wider trend of regulatory scrutiny and reputational challenges. In July 2025, French authorities fined Shein €40 million for deceptive pricing and misleading discounts (Fashion Network, Inside Retail). This was compounded by a June 2025 complaint from the EU consumer group BEUC over manipulative digital tactics (Inside Retail), and further public and legislative backlash in November and October 2025 regarding Shein’s business model and store launches (Inside Retail). These developments illustrate the mounting legal and operational pressures on fast-fashion platforms to prioritise compliance, transparency, and consumer protection.

Shein’s marketplace temporarily suspended in France

What: Cybercriminals are using OpenAI’s API as a covert command channel to deploy persistent backdoors and evade detection in retail digital environments.

Why it is important: The abuse of trusted AI APIs for cyberattacks exposes new vulnerabilities in retail IT, requiring urgent updates to security and vendor oversight.

The discovery of the SesameOp backdoor, which utilises OpenAI’s API as a stealthy command-and-control channel, marks a significant escalation in the sophistication of cyber threats targeting retail digital environments. By exploiting legitimate AI APIs, attackers can maintain persistent, covert access to compromised systems, bypassing traditional security measures and blending in with normal network activity. This approach leverages trusted developer tools and advanced obfuscation techniques, making detection and remediation particularly challenging for retail IT teams. The campaign’s focus on long-term espionage and operational control raises serious concerns about data security, customer privacy, and the integrity of retail operations. As AI-powered integrations and third-party APIs become increasingly embedded in retail workflows, the sector faces heightened risks from both external and supply chain attacks. These developments underscore the urgent need for retailers to strengthen cybersecurity governance, enhance vendor oversight, and implement continuous monitoring of all AI and API-driven processes to protect against emerging threats and safeguard business continuity.

IADS Notes: The Robin Report (August 2025) and BCG (August 2025) both highlight how AI systems and APIs introduce new vulnerabilities, with 41% of breaches linked to third-party providers and average losses exceeding £1.4 million. RH-ISAC (April 2025) and Retail Week (August 2025) document the rise of sophisticated, AI-driven cyberattacks on retail, while Trustwave (May 2025) details the evolving tactics of advanced cybercrime groups exploiting both traditional and AI-powered vectors.

Microsoft detects "SesameOp" backdoor using OpenAI's API as a stealth command channel

What: Nordstrom Rack is solidifying its position as a leading premium off-price retailer through strategic growth and customer-focused initiatives.

Why it is important: The shift underscores the transformation of department stores and the premium segment in response to evolving consumer expectations.

Nordstrom Rack’s rise as a premium off-price powerhouse demonstrates how the retailer is capitalizing on changing consumer preferences and economic pressures. By expanding its store footprint and enhancing its omnichannel capabilities, Nordstrom Rack is able to reach a broader audience seeking value without sacrificing quality. The retailer’s revamped loyalty program, which now offers instant savings and immediate rewards, is designed to foster deeper customer engagement and retention in a highly competitive market. These efforts are set against a backdrop of increased consumer selectivity, with shoppers gravitating toward retailers that provide both affordability and a premium experience. As department stores and luxury brands face mounting challenges from shifting market dynamics, Nordstrom Rack’s approach highlights the necessity of innovation and adaptability. The brand’s evolution not only reflects the broader industry trend toward value-driven retail but also signals a redefinition of what it means to be a premium player in today’s retail environment.

IADS Notes: In December 2023, The Robin Report highlighted concerns about Nordstrom’s increasing reliance on Rack stores and the potential risks of brand dilution as consumers shifted toward off-price and secondhand channels. The transformation of Nordstrom Rack’s loyalty program, reported by WWD in April 2025, reflects a broader industry move toward customer-centric innovation. Store expansion and omnichannel strategies, as discussed in Inside Retail and Retail Dive in March and September 2025, have become critical for growth among leading retailers. Rising living costs and the growing importance of value-driven shopping were analysed in Retail Asia in December 2024 and BoF in January 2025, illustrating the accelerating shift in consumer behavior. Finally, Retail Week in August 2025 emphasised that department stores remain relevant when they invest in modernisation and experiential retail, reinforcing the significance of Nordstrom Rack’s adaptive strategies.

Nordstrom Rack emerges as premium off-price powerhouse

What: M&S suffered a £136mn profit hit after a cyber attack forced a seven-week suspension of online sales and disrupted its digital operations.

Why it is important: This incident demonstrates how cyber attacks can cause severe financial and reputational damage, echoing recent patterns of escalating risk and operational disruption in retail.

Marks & Spencer’s recent cyber attack has exposed the acute vulnerabilities and far-reaching consequences of digital threats in the retail sector. The breach, which forced the suspension of online sales for seven weeks, resulted in a £136mn profit hit and nearly £700mn wiped from the retailer’s market value. The disruption to daily digital sales and click-and-collect services not only impacted revenue but also led to a 7% drop in share price and a marked decline in customer recommendation rates, falling from 87% to 73%. The incident, traced to human error at a third-party supplier, highlights the risks associated with complex supply chains and the increasing frequency of breaches originating from external partners. M&S’s phased recovery, including the restoration of third-party brands to its website, reflects the broader sector’s shift toward accelerated technological transformation and resilience. With average losses from cyber attacks now reaching £1.4mn per incident and 41% of breaches linked to third-party providers, the retail industry faces mounting pressure to invest in robust cybersecurity and rapid response strategies to safeguard operations, reputation, and customer trust.

IADS Notes: In April 2025, M&S’s cyber crisis resulted in a suspension of online operations, a £700mn market value loss, and a 7% share price drop (Financial Times). By May 2025, customer recommendation rates had fallen sharply, highlighting reputational risks (Retail Week). The profit impact, attributed to a third-party supplier breach, reached £300mn (Financial Times, May 2025). Recovery efforts in June 2025 included restoring third-party brands, underscoring the need for technological transformation (Retail Week). By August 2025, the sector’s vulnerability to cybercrime was further emphasized, with 41% of breaches linked to third-party providers and average losses of £1.4mn per attack (Retail Week).

M&S takes £136mn profit hit from cyber attack

What: Singapore retail sales rose 2 per cent in September, with growth moderating from previous months and online channels accounting for 17.6 per cent of sales.

Why it is important: The moderation in growth and divergence across categories reflect a maturing retail market, with digital transformation and evolving consumer priorities shaping sector performance.

Singapore’s retail sector experienced a 2 per cent year-on-year increase in September, marking a slowdown from August’s 4.7 per cent rise and reflecting a broader trend of fluctuating but resilient growth throughout 2025. The estimated retail sales value reached SG$3.5 billion, with online channels accounting for 17.6 per cent, underscoring the ongoing digital transformation of the market. Watches and jewellery continued to outperform, posting a 16.6 per cent year-on-year increase, while recreational goods and supermarkets also saw notable gains. In contrast, petrol service stations and apparel and footwear retailers recorded declines, highlighting the polarisation between essential and discretionary categories. Food and beverage services faced further pressure, with sales falling 1.6 per cent, driven by a weak restaurant sector, and 26.3 per cent of F&B sales occurring online. These results illustrate the evolving nature of consumer demand and the importance of digital channels, as well as the need for retailers to adapt strategies to sector-specific trends and shifting market dynamics.

IADS Notes: In July 2025, Singapore’s retail sales rose 4.1 per cent, led by technology, jewellery, and supermarkets, with online channels at 15.5 per cent (Inside Retail). June and May 2025 saw modest or flat growth, with online penetration steady at 14–16 per cent and sector performance diverging. March 2025 highlighted watches and jewellery as a growth leader, while December 2024’s 4 per cent decline underscored the polarisation between categories and the acceleration of digital adoption (Inside Retail).

Singapore retail sales see moderating growth in September

What: Shein’s expansion into French department stores has sparked fierce opposition from lawmakers, retailers, and regulators over its fast-fashion model and market practices.

Why it is important: This development underscores the growing tension between digital disruptors and traditional retail, echoing recent regulatory and industry responses in France.

Shein’s attempt to establish a permanent presence in French department stores has ignited significant backlash from lawmakers, retail associations, and regulators, who argue that its low-cost, fast-fashion model undermines local businesses and jobs. The controversy has led to coordinated campaigns by politicians to block Shein’s expansion, including direct interventions with department store executives and public institutions. French authorities have imposed substantial fines on Shein for deceptive pricing and data violations, while new legislation targeting platforms that introduce thousands of new items daily is set to further restrict its operations. The company’s partnerships with local retailers, such as SGM and Pimkie, have resulted in reputational damage and industry expulsions, illustrating the risks for French brands aligning with global fast-fashion giants. At the same time, the removal of customs exemptions for low-value imports and heightened scrutiny of market dumping signal a broader shift in European retail policy. These developments reflect the mounting pressure on digital-first brands to adapt to evolving regulatory and ethical standards in France’s retail sector.

IADS Notes: Shein’s expansion in France has intensified resistance from lawmakers and retailers, as seen in Fashion Network (October 2025), with sector-wide protests, regulatory fines, and the withdrawal of key partners. The introduction of new customs and compliance measures, highlighted in Journal du Net (April 2025), alongside the expulsion of brands like Pimkie from industry associations (Fashion Network, September 2025), underscores the reputational and operational risks for both Shein and its French collaborators. These events, also covered in Inside Retail (November 2025), illustrate the broader challenge of balancing innovation, competition, and sustainability in the European retail landscape.

Inside Shein’s fast-fashion fight in France

What: French lawmakers and retailers are intensifying opposition to Shein’s business model and online content, as the brand faces regulatory threats and public backlash during its physical retail expansion.

Why it is important: The mounting backlash against Shein highlights the operational, reputational, and regulatory risks facing fast-fashion platforms and their partners in Europe’s evolving retail landscape.

Shein’s attempt to establish a permanent retail presence in France has ignited unprecedented resistance from lawmakers, retailers, and regulators, fueled by a scandal involving the sale of childlike sex dolls and broader concerns over its ultra-fast fashion model. French authorities have threatened market bans, citing repeated violations and the risk of further reputational harm, while industry bodies have expelled partners like Pimkie for aligning with Shein. Staff protests and the withdrawal of key brands from BHV Marais illustrate the operational and financial instability that can result from such controversial partnerships. The surge of low-value Asian imports has prompted France and the EU to introduce new customs and compliance measures, aiming to level the playing field for domestic retailers and address sustainability and consumer protection. Regulatory scrutiny has intensified, with Shein fined €40 million for deceptive pricing and environmental claims, signaling a shift toward stricter oversight of fast-fashion business practices. This evolving landscape reflects a broader transformation in European retail, where ethical, legal, and sustainability considerations are increasingly shaping market access and competitive strategies.

IADS Notes: In October 2025, Shein’s Paris store launch at BHV Marais triggered sector-wide backlash, with Galeries Lafayette blocking Shein’s entry and Pimkie expelled from retail associations after its Shein alliance (Inside Retail, Fashion Network). Staff protests and financial instability at BHV Marais mirrored these tensions, while the April 2025 surge in Asian e-commerce imports led to new customs and compliance measures (Journal du Net). Regulatory scrutiny peaked in July 2025 with a €40 million fine for deceptive pricing, reinforcing the growing influence of ethical and legal standards in retail partnerships.

Shein’s fast-fashion fight in France goes up a gear with sex doll scandal

What: The rise of ultra-cheap, frictionless global marketplaces is forcing local retailers to adapt through curation, agility, and new value propositions.

Why it is important: The success of global marketplaces underscores the importance of regulatory adaptation, strategic partnerships, and a renewed focus on customer experience for local players.

The rapid expansion of global e-commerce platforms such as Temu, Shein, and Amazon is fundamentally altering the competitive landscape for local retailers. These digital-first giants leverage scale, supply chain innovation, and aggressive pricing to deliver unprecedented convenience and affordability, setting new consumer expectations for speed and value. Local retailers, constrained by higher costs, regulatory burdens, and limited reach, are challenged to differentiate themselves through curated assortments, storytelling, and superior service. As regulatory changes—such as the closure of tax loopholes—begin to level the playing field, local players have an opportunity to reclaim market share by emphasizing quality, ethics, and unique experiences. The most resilient retailers are those who adapt quickly, embrace collaboration, and leverage marketplace infrastructure to enhance their offerings. In this evolving environment, success depends on the ability to innovate, build trust, and deliver value that goes beyond price alone, ensuring relevance and resilience amid global digital disruption.

IADS Notes: The rapid rise of global e-commerce platforms like Temu and Shein is fundamentally reshaping retail competition, pricing, and consumer expectations, as seen in their capture of 3.6% of South Africa’s retail clothing market and 37.1% of e-commerce fashion sales within just five years (Inside Retail, August 2025). Their disruptive, digital-first strategies—built on ultra-low pricing models and supply chain innovation—have challenged both local and international players, but also face increasing regulatory scrutiny, as detailed by The Diplomat (March 2025). The impact of regulatory changes is evident in the US, where the elimination of the $800 duty-free threshold led to a dramatic drop in user engagement for Shein and Temu, creating new opportunities for domestic retailers and established platforms like Amazon (Financial Times, June and February 2025). In response, local retailers are focusing on supply chain agility, curation, and storytelling to differentiate themselves, as highlighted by Forbes (August 2025), while also redefining value to emphasize quality, trust, and experience over price alone (BoF, January 2025). The most resilient retailers are those who adapt by integrating new revenue streams, leveraging marketplace infrastructure, and embracing collaboration, as shown in BCG’s June 2025 analysis. These developments underscore the need for continuous innovation, strategic adaptation, and a renewed focus on customer value in the face of global digital disruption.

Does outrage over Shein and Temu miss the real retail lesson?

What: M&S is leveraging TikTok Shop to make its beauty and fashion products instantly shoppable, targeting younger, digitally native consumers.

Why it is important: The strategy highlights the effectiveness of integrating shoppable content and live engagement to boost product discovery and conversion.

Marks & Spencer’s launch on TikTok Shop marks a significant evolution in its retail strategy, focusing on making beauty and fashion products instantly accessible to a new generation of consumers. By introducing a dedicated TikTok Shop and offering live shopping sessions, M&S is capitalising on the platform’s viral potential and the growing trend of social commerce. This approach not only amplifies brand visibility through influencer-driven content but also allows for real-time customer interaction, enhancing the overall shopping experience. The move comes after several M&S products achieved viral status on TikTok, resulting in rapid sell-outs and heightened demand. By prioritising shoppable content and live demonstrations, M&S is meeting consumers where they are most engaged, particularly younger, digitally native audiences who value convenience and interactive experiences. This strategy positions M&S at the forefront of experiential retail, ensuring it remains relevant and competitive in an increasingly digital marketplace. 

IADS Notes: Recent reports confirm TikTok Shop’s rapid ascent as a major retail force, with over half of its transactions from new customers and a strong focus on fashion and beauty (Forbes, February 2025; Journal du Net, January and March 2025). The integration of live, shoppable content and influencer-driven engagement is reshaping how brands like M&S connect with younger audiences and drive conversion, reflecting broader trends in experiential and social commerce (Los Angeles Times, March 2025; Press Release, February 2025).

M&S launches on TikTok shop

What: Armani Beauty launched its flagship in Mumbai, reinforcing its presence and commitment to India’s growing beauty and luxury sector.

Why it is important:  This move reflects the rapid growth of India’s luxury market and the increasing presence of global brands, as highlighted in recent industry reports.

Armani Beauty’s flagship opening in Mumbai’s Phoenix Palladium Mall marks a pivotal moment in the brand’s expansion strategy, underscoring its commitment to India’s burgeoning luxury and beauty market. The launch comes amid a surge of international retail brands entering India, with the luxury sector experiencing robust growth and a notable shift in consumer demographics, as nearly half of luxury shoppers now reside outside major metropolitan areas. The strategic choice of a high-traffic mall for the flagship highlights the enduring value of physical retail spaces as centers for innovation and customer engagement, even as digital channels continue to drive a significant portion of beauty sales. This development also reflects the broader trend of experiential retail, where immersive brand experiences are increasingly vital for differentiation and loyalty. As competition intensifies among global beauty brands in India, Armani Beauty’s investment in both physical presence and experiential retail positions it to capture a larger share of this dynamic market.

IADS Notes: The opening of Armani Beauty’s Mumbai flagship aligns with a broader transformation in India’s luxury retail landscape, as documented in February and October 2025 by India Economic Times and in March 2025 by Vogue Business, which highlight the influx of international brands, robust market growth projections, and the strategic importance of flagship locations. Inside Retail’s August 2025 analysis underscores the enduring relevance of flagship stores as innovation and engagement hubs, while Forbes (March 2025) and Inside Retail (March 2025) confirm the explosive growth of beauty and cosmetics in emerging markets. The July 2025 Forbes report further illustrates how experiential retail is setting new standards for luxury, reinforcing the competitive intensity and innovation driving the sector forward in India.

Armani Beauty unveils flagship in Mumbai

What: Lotte Department Store is introducing Line Pay Taiwan across all stores to cater to the growing number of Taiwanese tourists.

Why it is important: This move reflects the growing importance of cross-border payment solutions and tailored services for international tourists in retail.

Lotte Department Store is rolling out Line Pay Taiwan as a payment option in all its locations, responding to a significant increase in Taiwanese visitors to Korea. By enabling tourists to use a familiar digital wallet, Lotte removes barriers related to currency exchange and payment friction, directly enhancing the shopping experience for this key demographic. The initiative is supported by special promotions, including gift certificates and payback benefits, designed to incentivise spending and foster loyalty among Taiwanese customers. This strategy not only addresses the practical needs of international tourists but also positions Lotte as an innovator in adopting cross-border payment solutions. The move comes at a time when Korean department stores face stagnating domestic growth, making the attraction of foreign shoppers increasingly vital. By being the first in the industry to implement Line Pay Taiwan, Lotte demonstrates a proactive approach to capturing new market segments and differentiating itself through customer-centric digital innovation. 

IADS Notes: Lotte’s adoption of Line Pay Taiwan is consistent with the 40% boost in foreign sales reported during the October 2025 golden holidays, driven by targeted promotions for international visitors (ChosunBiz, October 2025). This approach mirrors broader regional trends, such as The Mall Group’s partnerships with payment platforms like UnionPay to enhance the tourist shopping experience (The Nation, August 2025; Bangkok Post, June 2024). With domestic sales growth stagnating (Maeil Business Newspaper, January 2025), Lotte’s focus on payment innovation and tailored services for tourists positions it at the forefront of retail adaptation and competitiveness. Debenhams’ launch of a new credit payment service (Drapers, March 2025) further illustrates the industry-wide shift toward digital payment solutions.

Lotte Department Store adds 'Line Pay Taiwan' for Taiwanese tourists

What: Digital product passports are set to transform retail by mandating transparency, compliance, and sustainability across the industry.

Why it is important: Mandating digital product passports accelerates digital transformation in retail, reinforcing trends seen in recent sustainability and compliance initiatives.

The introduction of digital product passports (DPPs) is poised to fundamentally reshape the retail landscape by enforcing new standards of transparency, compliance, and sustainability. With the EU’s revised sustainability directives, including CSRD, CSDDD, and ESPR, retailers face a mandate to implement DPPs by 2028, requiring significant changes to compliance processes and data management systems. This regulatory evolution is driving retailers to address complex reporting requirements and adapt to a fragmented landscape of sustainability standards. As sustainability becomes a core expectation, retailers are integrating environmental responsibility throughout their value chains to meet both regulatory and consumer demands for transparency and lifecycle accountability. The adoption of circular economy strategies is moving from theory to practice, with business models increasingly focused on repair, resale, and waste reduction. Leading retailers are embedding ESG principles into their operations, signaling a broader industry shift toward measurable environmental and social impact. These changes collectively accelerate the digital transformation of retail, positioning the industry for a future defined by accountability and innovation.

IADS Notes: In March 2025, Drapers reported that the EU’s updated sustainability directives, including CSRD, CSDDD, and ESPR, are set to make digital product passports mandatory by 2028, requiring retailers to transform compliance and data management. Vogue Business in February 2025 highlighted the industry’s struggle with complex supply chain reporting rules and the push for standardized transparency. Euromonitor, also in February 2025, observed that sustainability is now a baseline for innovation, with retailers integrating environmental responsibility throughout their value chains. The Retail Bulletin in March 2025 discussed the practical adoption of circular economy strategies, emphasizing regulatory and consumer-driven shifts toward repair, resale, and waste reduction. By July 2025, Maeil Business Newspaper documented how leading retailers, such as Hyundai Department Store, were embedding ESG management and transparency into their core operations, reflecting the industry’s broader move toward measurable sustainability and governance.

The Digital Product Passport: regulation or revolution?

What: Saks Global strengthens its executive team by recruiting talent from Bloomingdale’s for senior positions in store strategy and flagship management.

Why it is important: Recruiting experienced leaders from competitors supports Saks Global’s strategy to enhance customer experience and drive growth in flagship locations.

Saks Global has strategically appointed Matt Dunphy as senior vice president of store growth and experiences, and Christina DeGrezia as vice president and general manager of the Saks Fifth Avenue flagship in Manhattan, both reporting to Mary McGreevy. These leadership changes come as part of a broader transformation aimed at maximising the potential of Saks Fifth Avenue and Neiman Marcus stores, with a strong emphasis on innovation and customer-centric experiences. Dunphy and DeGrezia, both with significant experience at Bloomingdale’s, bring valuable external perspectives to Saks Global’s evolving executive team. Their roles are central to implementing the company’s “The Art of You” vision, which prioritises personalised service, data-driven strategies, and immersive in-store activations. The appointments also coincide with a recent management reorganisation designed to streamline operations and strengthen brand partnerships. By focusing on flagship store leadership and integrating talent from leading competitors, Saks Global is positioning itself to redefine luxury retail experiences and reinforce its brand identity in a rapidly changing market. 

IADS Notes: Saks Global’s recruitment of senior leaders from Bloomingdale’s and the creation of new executive roles reflect the company’s ongoing integration and transformation efforts following its merger with Neiman Marcus in December 2024 (“How Saks Global Aims to Shake Up Retailing,” WWD, December 2024; “Saks Global forms senior team, blending talent from Neiman Marcus and Saks,” WWD, January 2025; “Saks Global resets the buying team,” WWD, April 2025). These changes are part of a strategy to blend cross-brand expertise, drive innovation, and reinforce the importance of flagship stores as hubs for customer engagement and brand differentiation, as highlighted in “Why the global flagship still matters” (Inside Retail, August 2025).

Saks Global fills two key store roles

What: The rapid adoption of agentic commerce is shifting retail power from traditional websites to AI platforms, forcing brands to rethink digital strategies and customer engagement.

Why it is important: Retailers who fail to engage with AI platforms risk losing visibility, valuable data, and direct customer relationships to new digital gatekeepers.

Agentic commerce, driven by generative AI platforms like ChatGPT, is rapidly transforming the retail landscape by enabling consumers to discover and purchase products directly within conversational interfaces. Major retailers such as Walmart, Etsy, Shopify, and PayPal are integrating their offerings into these AI-powered chatbots, fundamentally altering the traditional path to purchase. This shift is attracting significant financial interest, with retail site traffic from AI browsers surging and McKinsey projecting agentic AI could drive up to $5 trillion in global retail revenue by 2030. However, the move to AI-mediated shopping channels presents new risks for retailers, including diminished opportunities for impulse purchases, loss of valuable consumer data, and the emergence of AI platforms as powerful new gatekeepers. As AI platforms increasingly control brand visibility and customer access, retailers must adapt their digital strategies to maintain relevance, optimize for AI-driven discovery, and safeguard direct relationships with their customers in an evolving answer economy. 

IADS Notes: The rapid rise of agentic commerce—where AI platforms like ChatGPT mediate product discovery, purchase, and brand visibility—is fundamentally reshaping the retail landscape. As highlighted by Modern Retail (August–September 2025), the integration of instant checkout within ChatGPT marks a pivotal shift, transforming AI from a research tool into a direct sales channel and raising concerns about market fairness and data access for smaller merchants. Inside Retail (September–October 2025) and Journal du Net (September 2025) confirm that AI-driven commerce is outpacing retailer readiness, with algorithms now controlling brand visibility and requiring brands to optimize for generative engine optimization and machine readability. Forbes (September 2025) and BoF (January 2025) emphasize that the explosive growth of AI-driven shopping is forcing retailers to recalibrate their digital strategies, as traditional marketing and loyalty tactics lose effectiveness. The convergence of major payment providers and AI platforms, as seen in PayPal’s and Walmart’s partnerships with OpenAI (Techcrunch, October 2025; Retail Dive, October 2025), is democratizing advanced commerce technologies but also intensifying competition and shifting power away from traditional retailers. The Robin Report (August 2025) and BCG (September 2025) further highlight the urgent need for robust cybersecurity, transparency, and responsible AI governance as agentic commerce becomes the new standard. Collectively, these developments signal a fundamental reconfiguration of retail, where success depends on adapting to AI-driven environments and maintaining relevance in the answer economy.

AI is a double edge sword for retailers

What: Online resale platforms are shifting from offering vast inventories to providing curated, AI-enhanced shopping experiences that blend technology with human expertise.

Why it is important: This shift reflects a broader industry trend toward personalisation and operational innovation.

Online resale platforms are undergoing a significant transformation, moving away from the traditional model of maximizing inventory in favor of delivering more curated and personalized shopping experiences. This change is driven by evolving consumer expectations, shaped by digital platforms that prioritise tailored recommendations and streamlined browsing. To meet these demands, secondhand retailers are increasingly investing in AI and data analytics, which enable them to identify in-demand products, optimise inventory, and enhance the overall customer journey. At the same time, these platforms are integrating human expertise through collaborations with celebrities, influencers, and staff curators, adding a layer of authenticity and social proof that resonates with shoppers. Operational challenges unique to the resale sector, such as managing vast and constantly changing inventories, are being addressed through innovative technology and business models. As a result, platforms that successfully blend technological advancements with human touchpoints are seeing improved customer engagement, higher conversion rates, and greater profitability, positioning themselves at the forefront of the rapidly growing secondhand market. 

IADS Notes: Drawing on recent developments in the second-hand retail sector, the shift from mass inventory to curated experiences is increasingly evident as retailers prioritise quality control, brand partnerships, and hybrid digital-physical models, as highlighted in "E-commerce: the secret of second-hand fashion survivors" (April 2025, Journal du Net). This evolution is driven by changing consumer expectations for more personalized and streamlined shopping, with platforms leveraging AI and data analytics to optimize assortment, demand forecasting, and inventory management, resulting in measurable gains in operational efficiency and customer satisfaction, as seen in "How AI-driven hyper-personalisation is transforming retail" (March 2025, Inside Retail) and "AlixPartners launches AI profit engine" (April 2025, WWD). The integration of technology is complemented by a renewed focus on human expertise, with leading retailers blending digital innovation and emotional branding to foster loyalty and deepen engagement, as discussed in "The future of loyalty, according to luxury department stores" (May 2025, Inside Retail) and "Why luxury resellers and department stores are rekindling their relationship" (August 2024, Vogue Business). Operational challenges unique to resale, such as authentication and unsold inventory, are being addressed through AI-powered tools and inventive business models, with profitability hinging on the ability to adapt and innovate, as demonstrated in "The business of second-hand clothing is booming" (March 2025, The Economist) and "Second-hand fashion creates only third-rate profit" (December 2024, Financial Times). This convergence of curation, technology, and human connection is redefining the competitive landscape for second-hand platforms.

Resale sites try a new strategy: sell less stuff