What: A new task force has been launched in New York City to address the growing issue of retail theft.

Why it is important: Reported cases of shoplifting have increased by 44% between 2021 and 2022, prompting action from city officials.

The task force, led by Deputy Mayor Philip Banks III, aims to advise the administration on legislative proposals and implement best practices to combat retail theft. It is based on recommendations gathered from a Retail Theft Report, which was formed in December 2022 after a summit with 70 stakeholders. The report suggests a combination of increased law enforcement efforts and enhanced social service programming to prevent shoplifting.

While retail theft has decreased this year, Mayor Eric Adams acknowledges the need for further action to safeguard businesses, protect jobs, and create a safer city environment. This task force aims to take a comprehensive approach and collaborate with experts and practitioners to address retail theft and its impact on the city.

New York City to crack down on retail theft through new task force

What: According to Boston Consulting Group, e-commerce is projected to account for 41% of global retail sales by 2027, a substantial increase from its 18% share in 2017.

Why it is important: The study highlights the lasting transformation in the e-commerce landscape due to the COVID-19 pandemic, with increasing rivalry between emerging entrants and established incumbents.

BCG's report, "Winning Formulas for E-Commerce Growth," is based on a global survey of 410 retail companies and 415 consumer packaged goods (CPG) companies, encompassing revenues ranging from USD 50 million to over USD 10 billion.

In 2022, e-commerce sales in Europe increased by 3%, while the US and Asia saw a 7% growth. The global e-commerce market is anticipated to achieve a compound annual growth rate of 9% through 2027, doubling the projected growth of physical stores, which is expected to be only 4%.

E-commerce to be 41% of global retail sales by 2027 says BCG

What: Mumbai, India has opened its first luxury mall, the Jio World Plaza, owned by Reliance Industries Ltd.

Why it is important: The mall aims to cater to the growing number of high-net-worth individuals in India.

The 750,000-square-foot mall is centrally located and features global luxury brands such as Louis Vuitton, Gucci, Cartier, Bally, Giorgio Armani, Dior, Saint Laurent, and Bulgari. The opening was preceded by a star-studded event with top Bollywood actors and brand ambassadors in attendance. It also includes first-time store launches for brands like Balenciaga, Pottery Barn Kids, Rimowa, and the Giorgio Armani café. The mall's design and architecture reflect a blend of Indian craftsmanship and international luxury standards.

India’s largest luxury mall opens in Mumbai

What: Luxury resale is making its way into travel retail, with airports and cruise lines embracing the trend to offer pre-owned luxury goods.

Why it is important: The integration of pre-owned luxury goods into travel retail caters to the sustainability-conscious, price-conscious, and collectors market segments, while also offering a unique value proposition of exclusivity and tax-free prices for travellers.

The global market for pre-owned luxury goods grew by 28% in 2022 to EUR 43 billion, driven by sustainability concerns and affordability for aspirational consumers. In the travel retail sector, sales of luxury goods increased by 40% in 2022, but still remain below pre-pandemic levels.

ARI, a travel retailer, plans to open a pre-owned luxury boutique at Lisbon Airport and expand the concept to other airports worldwide. Harding+, a cruise liner retail operator, is also expanding its preloved offer and introducing a vintage lounge concept called 'Reloved'.

Leather goods, watches, and jewellery are the best performers in pre-owned luxury on cruise ships, providing travellers with exclusivity, tax-free prices, and access to rare and limited-edition pieces. Curation plays a vital role in the limited space of travel retail, with vendors combining passenger data and demographic information to create unique assortments for different ships and destinations.

Luxury resale hits airports and cruise lines. Can it scale?

What: Signa’s bankrupcy might endanger Globus department stores.

Why it is important: Switzerland is a relatively small country for 3 chains of department stores. Any capitalistic move might durably change the retail landscape.

The future of the Globus department stores, part of René Benko's Signa Group, is increasingly uncertain. While Globus reportedly has enough liquidity to manage through the Christmas period, its future beyond that is unclear. According to Inside Paradeplatz, key divisions of Signa may have to declare bankruptcy unless Benko can secure 500 million Swiss francs to stabilize his empire, which seems unlikely.

Since being sold by Migros four years ago, Globus, operating under "Magazine zum Globus AG," is 50% owned by Signa, with the remaining half held by Thailand's Central Group. There had been talks of selling Signa's share to its Thai partner, but the complex structure managing Globus has made this difficult.

Notably, Globus' retail operations are part of Signa Retail Selection AG, while its real estate assets, including the iconic Zurich building, are under another division, European Industry Holding AG. NZZ am Sonntag raised questions about the valuation of the Zurich property in Signa's accounts, which appears high given the revenue it generates. However, according to experts and sources, Globus' retail operations are profitable.

Globus stores are endangered by Signa’s woes

What: Korn Ferry argues that while retailers have for long focused on the younger generations, the retiring Boomers might be a pocket of growth for the coming years.

Why it is important: This is exactly what was discussed at the last IADS CEO meeting in London.

Retailers, traditionally focused on marketing to younger customers, are now recognizing the significant spending power of senior citizens. Since the pandemic, seniors in the US have accounted for 22% of all retail spending, despite being just 17% of the population. This surge in spending by baby boomers, now the wealthiest segment in society, is attributed to factors like paid-off mortgages and student loans, less financial support needed for children, and being less affected by recent interest rate spikes. Many are also working later into life, maintaining full-time incomes.

However, attracting spending from seniors is challenging. They tend to have established needs in terms of clothing and furniture and are often cautious about splurging on luxury items due to concerns about future expenses. Retailers are advised to focus more on what seniors want, like unique customer experiences and health products tailored to them.

There's a growing trend towards offering experiences in travel, entertainment, and active senior living with various amenities. This shift aligns with seniors' desires for hospitality-driven environments and activities suitable for their lifestyle. While it's uncertain whether this emphasis on experiences is a temporary effect of pent-up demand from the pandemic or a long-term trend, it's clear that enticing senior customers will require exceptional products and innovative experiences.

Catching the new big spenders

What: Signa, has filed for insolvency after failing to raise additional funds.

Why it is important: The company cited a lack of necessary liquidity and severe economic pressure as the reasons for its financial struggles.

Restructuring experts may consider selling Signa's stakes in an effort to generate funds, potentially leading to a new landlord for Selfridges. However, Selfridges confirmed that it continues to operate normally and has the ongoing support of Central Group.

Selfridges shareholder Signa files for insolvency just weeks after stake sale

What: Marks & Spencer has opened a new store at the Lakeside shopping mall in Essex, increasing its visibility at this popular centre.

Why it is important: The Lakeside store is one of the nine new M&S openings in November, representing a total investment of GBP 80 million and creating over 2,200 jobs across the UK.

The store has undergone a reconfiguration with a new, enlarged entrance as part of a GBP 20 million investment. It features spacious departments for Clothing, Home & Beauty, a 140-seat M&S Café, and highlights various M&S customer favorites and popular brands.

M&S Lakeside opening boosts visibility at key mall

What: Upstart footwear brands, including On Holding and Hoka, are gaining more shelf space in global retailers, challenging Nike and Adidas with their popular styles and focus on premium running shoes.

Why it is important: Market share for On Running and Hoka has increased while Nike and Adidas have experienced a decline.

These brands have been successful in attracting customers with innovative product offerings in the running and performance shoe categories. Market share for On Running and Hoka has increased while Nike and Adidas have experienced a decline. The appeal of these newer brands lies in their new aesthetic and their ability to cater to everyday runners.

Consumers in the US are willing to try out alternative brands, driven by a desire for newness and choice.

On, Hoka starting to take more retail shelf space from Nike, Adidas

What: The acquisition of SportScheck by Frasers Group is in jeopardy as the German sporting chain faces collapse.

Why it is important: The potential collapse of SportScheck and Frasers Group's acquisition deal exposes the significant impact of funding crises and insolvency on retail chains and their expansions.

Frasers Group, led by Mike Ashley, intended to fuel its European growth with the acquisition of SportScheck's 34-store chain. However, SportScheck's owner, Signa Holding, is experiencing a funding crisis and has filed for insolvency for its Signa Sports division. Suppliers are hesitant to do business with SportScheck, and administrators may be called in as early as Monday.

Frasers Group is exploring the possibility of rescuing the deal. Under Germany's bankruptcy laws, Frasers Group could potentially fund the collapse and acquire SportScheck through an insolvent sale. Frasers Group was also among the interested parties in the administration of Wiggle, an online bike retailer owned by Signa Sports.

Frasers’ SportScheck acquisition at risk as retailer borders on collapse

What: BOF reviews the current situation of luxury shopping in Mumbai and how it could evolve in the coming years.

Why it is important: Mumbai is the next hotspot on the planet and many department store companies including IADS member Galeries Lafayette intend to become significant players there.

Jio World Plaza, a new luxury mega mall in Mumbai, has officially opened after 4 years of construction. It is part of Indian billionaire Mukesh Ambani's Reliance Industries.

The opening coincides with India emerging as a major luxury market, with rapid wealth creation and Indians spending more domestically due to capital controls. The mall includes 750,000 square feet of retail space and houses the first Indian stores for brands like Rimowa, Balenciaga, and Valentino. Major brands like Louis Vuitton and Gucci also have large stores there.

Historically, the lack of high-quality retail spaces has been a challenge for luxury brands expanding in India. Jio World Plaza aims to address this. While impressive, however, the mall lacks local flavor and could be anywhere globally.

In contrast, the old South Mumbai district is developing into a luxury hub with more local character. Luxury brands like Hermès, Sabyasachi, and soon Galeries Lafayette are opening stores there.  If more luxury brands open stores around Horniman Circle in South Mumbai, it could become India's equivalent of Bond Street or Fifth Avenue.

For now, Jio World Plaza dominates as a luxury destination in Mumbai and finally gives luxury shoppers a world-class mall, but South Mumbai may eventually rival it by offering a more distinct luxury shopping experience.

Will Mumbai have its own version of 5th Avenue? 

What: Harrods has partnered with Valentino to create a "luxury wonderland"  pink Christmas for the festive season.

Why it is important: The display will elevate the overall holiday shopping experience for customers and encourage in-store traffic.

The collaboration includes a nine-meter-tall Christmas tree adorned in Valentino Pink and a pop-up truck serving Valentino hot beverages and festive treats. Valentino has also taken over some of the Hans Crescent windows with festive displays that capture the enchantment of Christmas at Harrods.

The partnership extends to Harrods' presence in China, with unforgettable winter experiences at The Harrods Tea Rooms and The Harrods Piano Bar in Shanghai.

Valentino has opened a temporary space within the department store, with plans to open an even larger women's ready-to-wear boutique in mid-December as well as a space dedicated to jewellery.

Harrods links with Valentino for spectacular pink Christmas

What: Mugler has partnered with French blockchain specialist Arianee to introduce digital product passports for their Spiral Curve 01 and 02 bags.

Why it is important: The collaboration aims to establish a direct and personalized relationship with customers.

These digital passports will provide authentication, traceability, and digital engagement platforms for users. Owners can register their bags by scanning a QR code, allowing for ownership validation and historical tracking. The digital passports also offer behind-the-scenes content, event invitations, and early access to sales.

The European Commission's requirements for digital product passports, including information on product composition and sustainability, are expected to be implemented from 2026.

Mugler teams up with Arianee for digital passports in bags

What: Kohl's has announced a board transition, with Peter Boneparth retiring from his role as board chair at the end of his term, to be replaced by Michael Bender.

Why it is important: The board's choice of new executives is part of Kohl's ongoing effort to refresh its board with experienced leaders and enhance diversity.

Boneparth has served as a Kohl's director for 15 years and will retire in May 2024. Michael Bender, who has been on Kohl's board since 2019, will assume the position of board chair. Adolfo Villagomez has been appointed as a new independent director, bringing over two decades of leadership and retail experience to the Kohl's team. He will initially serve on the Audit Committee. With Villagomez's appointment, the board now consists of 12 directors, with 11 of them being independent.

Kohl’s announces board transition

What: The situation in Chile is getting tense for all retailers.

Why it is important: World retailers should have a look at what is going on in Cencosud’s markets, where inflation is a well known pheonomenon, to learn how to deal with it.

The Chilean retailer Cencosud reported a 14.7% drop in net profit in the third quarter, attributing the decline to high borrowing costs and a slowdown in consumer spending, partly due to unfavorable weather conditions in some markets. The company's net profit was $176 million for the period.

Cencosud, one of the largest retailers in Latin America, operates in various sectors including department stores, grocery, and home improvement, with a presence in Brazil, Argentina, Colombia, Peru, and its home country, Chile. For the July-September period, its revenues totaled $4.3 billion, a 3.3% decrease from the previous year.

The company's consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) were $422 million for the quarter. The company cited several challenges, including low economic growth, low annual inflation, high interest rates, and persistent decline in discretionary spending. Additionally, the strengthening of the Chilean peso against other currencies and the impact of the El Niño weather phenomenon negatively affected its results.

Cencosud's third-quarter results do not include the financial effects from operations in neighboring Argentina, which is experiencing high inflation. The company has opened nearly 500 new stores this year across its supermarket, DIY, and department store brands and plans to remodel over 60 stores in the region as part of a customer experience improvement initiative.

The report follows a fine imposed on former CEO Matias Videla for insider trading related to the purchase of over 600,000 company shares last year. Recently, Renato Gutierrez was appointed as interim CEO, marking the company's second attempt at filling the position.

Chile’s Cencosud profits down -15% due to local demand plumetting

What: Walmart’s shares fell last year following the realization that US consumers are acting more cautious than ever.

Why it is important: After 2 years of splurging in shopping, the US customer mood might change, but the timing is not the best, 3 weeks before Christmas. Expect some market changes as well.

Walmart has observed cautious consumer spending as the holiday season approaches, even though it has raised its sales and profit forecast for the year. The company's focus on groceries has helped mitigate the impact of reduced discretionary spending. However, Walmart's CFO noted a slowdown in purchases in late October, followed by a rebound in early November in categories like apparel and home goods. The company is preparing for a potentially less robust holiday season, reflecting the broader retail industry's sentiment.

Economic factors like higher interest rates and reduced household savings have led to uneven sales. U.S. retail sales have only marginally increased, and wholesale food inflation is showing signs of easing. Walmart's strategy of maintaining low prices has attracted a broader customer base, including high-income consumers seeking budget-friendly options. The company plans to offer price cuts for the holiday season, despite general merchandise prices falling by 3-6%.

Walmart's shares fell 7.7% on the announcement, although they had recently reached an all-time high. The company has updated its fiscal 2024 earnings forecast and now expects a higher rise in comparable sales than previously estimated. Online sales have also increased by 15%. Walmart's performance, including a higher-than-expected adjusted profit in the third quarter, reflects its adaptability in a challenging economic environment.

Walmart sees customers becoming increasingly worried

What: Wealthy Americans are postponing their trips to Paris due to the conflict in the Middle East, affecting tourism demand.

Why it is important: France has raised its terror alert to the highest level, causing the US embassy to advise citizens to be cautious while traveling and to avoid areas of demonstrations. France, being the most visited country, saw cancellations not only in Paris but also in other European capitals.

Premium class airfare sales between New York and Paris surged by 44% in the three weeks leading up to October 7, 2019, compared to the same period in 2019, but dropped to 4% in the three weeks after the attacks. Luxury hotels like the Plaza Athénée, Le Meurice, and Le Bristol experienced cancellations from US customers following the attacks.

Concerns over anti-Semitism, fear of being caught in a war zone, discomfort with chaos, and anti-American sentiment were cited as reasons for cancellations. The war in the Middle East also led to cancellations in Italy's hospitality industry and raised concerns among industry professionals.

Rich Americans cancel trips to Paris following rising conflict in the Middle East

What: Chinese tourists are returning to London after COVID-19 travel restrictions were lifted, but they are spending significantly less than before the pandemic.

Why it is important: The New West End Company, which represents stores and hotels in the district, found that tourists are now aware that the UK no longer offers tax-free shopping post-Brexit, causing them to redirect their purchases to other parts of Europe. As a result, even with an increase in visitor numbers, sales in London are not keeping up; The lack of VAT refunds is estimated to cost the UK GBP 10.7 billion in lost GDP and two million extra visitors per year.

In September, Chinese visitor numbers were just 2% below 2019 levels, but their spending was down 58%. The gap between total international visitor numbers and their spending in the capital compared to 2019 has grown from 1 percentage point in the first quarter to 31 percentage points in the third. The absence of tax-free shopping is viewed as a major disadvantage in attracting high-spending international visitors, with many retailers and business leaders calling for the UK government to reintroduce tax reimbursements.

Chinese tourists are returning to London, but spending far less

What: Walmart's investments of over USD 500 million to upgrade 117 of its stores across 30 states as part of a  larger plan to modernize over 1,400 stores in the US, with a total investment of more than USD 9 billion over two years.

Why it is important: Walmart's construction investments in store upgrades will create more local jobs and make it easier for associates to meet customer demands.

The upgraded stores feature improved layouts, wider product selections, and various technological enhancements as part of Walmart's "Signature Experience" initiative to enhance the shopping experience. Some of the improvements include interactive corner displays, larger pharmacies, rooms for nursing parents, QR codes and digital screens with helpful information for shoppers, and a Dollar Shop with seasonal products. Walmart considers its network of brick-and-mortar locations to be key nodes in its omnichannel operations.

The company aims to serve customers better by offering larger online grocery pickup and delivery areas, a grab-and-go section for quick meal options, refreshed exteriors and interiors, and a new checkout design based on customer feedback.

Walmart invests over $500M to upgrade 117 stores

What: Harvey Nichols is closing one of its 2 locations in HK.

Why it is important: Landmark is no longer the main place to go in HK, and Harvey Nichols wants to focus on Pacific Place, on the other side of the bay. Macro structure of the market has significantly changed in the course of 3 years in HK

Harvey Nichols, a British luxury department store chain owned by Hong Kong's Dickson Concepts, will close its Landmark store in Hong Kong's Central district after the end of this year. According to executive chairman Dickson Poon, the decision was influenced by a change in Chinese tourist behavior, as they are no longer as focused on shopping in Hong Kong as before the pandemic. This trend was noticeable during the Golden Week holidays. With locals also increasingly traveling abroad, there seems to be less need for multiple large-scale department stores in close proximity. The company will now concentrate its efforts on its Pacific Place store to build a local customer base and reduce costs.

Despite weaker consumer sentiment, Dickson Concepts reported a 26.1% increase in revenue to HKD 1 billion (US$128.2 million) for the six months ending September 30, with a net profit increase of 41.5%. Sales in Taiwan and China also saw significant increases. Additionally, Manju Malhotra, CEO of Harvey Nichols, is set to leave her role at the end of the year after a 25-year tenure, with Pearson Poon, executive director of Dickson Concepts, overseeing the business until a new CEO is appointed.

Dickson Concepts to close Harvey Nichols Landmark store in Hong Kong

What: Bain and Aptos’ research reveals that meeting consumers' demand for a seamless shopping experience across multiple channels is a top priority for retailers and brands.

Why it is important: Retailers and brands that invest in technology to deliver a seamless experience experience higher profitability and sales growth than their peers. However, few companies have a clear roadmap for implementing unified commerce.

Integration of back-end and in-store technology is desired, but physical stores are not yet ready for this integration. Retailers are more likely to succeed when they align the entire organization and use data analytics to understand customer preferences across physical and digital channels.

The report highlights the importance of offering in-demand services such as buy online, pick up in store (BOPIS) and ship from store, but it also emphasizes the need to ensure a seamless customer experience, as customers are likely to abandon their purchases if they encounter gaps or disruptions.

Unified commerce: key to profitability and sales growth, according to Bain and Aptos study

What: Fenwick has abandoned negotiations to open a new store in Guildford, a second tier UK City.

Why it is important: Fenwick will close its London store at the end of 2024, but seems to be looking to become a major regional player and make sure it is central in the rest of the country.

Fenwick, a UK independent department store group, has decided not to proceed with its plan to open a new store in Guildford by taking over the former House of Fraser location. The company had considered taking on a 16-year lease for the 180,000 sq ft space from Canada Life, but negotiations fell through without a disclosed reason. Fenwick has been aiming to expand its regional presence, especially after selling its London flagship store for £430 million, a move that brought the company back to profitability. This profit, amounting to £57.1m pre-tax in the 52 weeks leading up to January 28, marked a significant turnaround from a loss of £5.2m in the previous year. Despite this setback in expansion, Fenwick's CEO John Edgar reported that their existing nine stores across the UK and their online operations have been performing well amidst a fluctuating year.

Fenwick ends talks on taking over former HoF store in Guildford

What: The Fenwick building in New Bond Street is set for a makeover, with plans submitted to Westminster Council.

Why it is important: The proposed makeover reflects the changing dynamics of the retail industry and aligns with the growing demand for office spaces.

The new plan focuses on converting the space into offices, despite its location on a prestigious luxury shopping street. Architect Foster & Partners has proposed adding new upper floors and roof terraces to the 136-year-old building, boosting floor space by 40%. The aim is to have "world-class retail accommodation" on street level and the first floor, with upmarket offices above. The building is now owned by Lazari Investments, who purchased it for around £430 million. The current mix of 12,000 sq m of retail and less than 2,300 sq m of offices will be reversed, with the new building housing just under 4,700 sq m of retail and over 16,000 sq m of offices. This retail space will consist of four units accessed from New Bond Street.

Plans for Fenwick Bond St ex-flagship mean big cut in retail space

What: Indian e-commerce player Myntra opens physical stores in a Bengaluru mall.

Why it is important: Forget about the Amazon demise: pure players are still eager to go physical.

Myntra's B2B wholesale division has launched eight stores in a single day at the new Phoenix Mall of Asia in North Bengaluru. The stores include international and in-house brands like Mango, Nautica, and House of Pataudi. This opening marks a milestone for Myntra and introduces the first new format French Connection store in India. Myntra, an online marketplace based in Bengaluru, features over 6000 brands and the Phoenix Mall of Asia showcases a mix of international, national, and debut brands in Bengaluru.

Indian e-commerce player Myntra opens stores in mall