What: Selfridges stands out as a winner amidst Signa’s financial challenges.

Why it is important: Despite Signa’s challenging process of determining viable assets, Selfridges continues to thrive, with its festive season offerings attracting crowds and evolving with the times.

While Signa owns various retailers in Germany, Italy, and the Netherlands, Selfridges remains a highly regarded and sought-after asset. However, many of Signa's other department stores are likely to require significant redevelopment to have a sustainable future.

The Covid-19 pandemic and online shopping have further impacted the retail sector, making it a difficult time for commercial real estate. Germany, in particular, has been a challenge for Signa, with insolvency proceedings initiated for its Galeria Kaufhof and Karstadt stores. Forced asset sales may be part of Signa's survival plan as the situation evolves rapidly.

Selfridges stands out as a winner in Signa’s retail implosion

What: A semi-promotional piece about how Ikea is leading its sustainable efforts in the constraints of limiting its prices.

Why it is important: sustainability is often associated with high prices by both retailers and customers, and this is what limits the possibilities to go greener and more efficient at the same time in terms of business.

Karen Pflug, the chief sustainability officer at Ingka Group, Ikea's largest retail franchisee, is leading the group's ambitious transition to a circular business model by 2030. This initiative includes making sustainable living affordable and accessible to all, incorporating circularity in store design, and educating consumers about sustainable practices. Ikea aims to reduce its greenhouse gas emissions by 50% by 2030 and achieve full circularity in the same year. The company is focusing on using recycled or renewable materials in its products and making them easy to reuse, refurbish, or recycle.

Ingka Group conducts a global survey every two years to understand consumer attitudes towards sustainability, informing its strategy to work with municipalities and governments for better legislation and initiatives. An example of this effort is in the Netherlands, where Ikea collaborated with local authorities to recycle over a million mattresses.

The challenge for Ikea is to alter consumer perceptions of its products as disposable and low-priced, and instead emphasize durable, sustainable, and affordable products. Ikea stores now feature sustainable living shops and circular hubs, offering second-hand furniture and products that support a sustainable lifestyle. The company's buyback & resell service is also gaining popularity, with significant increases in customer usage and items given a second life.

Ikea, under Ingka Group, is committed to reducing its carbon footprint and fostering a more sustainable business model, demonstrating that environmental consciousness can coexist with affordability in retail. Pflug envisions a future where sustainability is so ingrained in Ikea's operations that her role as a sustainability officer becomes obsolete.

How Sustainability And Affordability Can Go Hand-In-Hand: The Case Of Ikea

What: Neiman Marcus recently hosted a Bejeweled Ball at the Hotel Swexan in Dallas, showcasing USD 140 million worth of gems to dazzle top jewellery clients and boost holiday sales.

Why it is important: The Bejeweled Ball created an intimate atmosphere for clients and brands to interact while showcasing the luxury jewellery offerings available at Neiman Marcus.

The Bejeweled Ball was the first of 500 events to be held at Neiman Marcus stores nationwide across different categories. The event marked the beginning of the holiday season and showcased the breadth of jewellery assortment available at Neiman Marcus. It featured six high jewellery vendors, including Assael, Bayco, Boucheron, Chopard, Margot McKinney, and Paul Fisher. Each vendor presented a table of pieces and offered a larger selection of merchandise in a hotel suite.

Neiman Marcus hosts Bejeweled Ball, high jewellery sales event

What: Walmart has announced that it is introducing sensory-friendly shopping hours in all of its stores in the U.S. and Puerto Rico.

Why it is important: The company aims to make the shopping experience more comfortable for its customers and associates.

These special hours, from 8 a.m. to 10 a.m. local time, are designed to support shoppers with sensory disabilities. During this time, the stores will turn off the radio, lower the lights where possible, and change the TV walls to a static image.

Walmart initially tested out these sensory-friendly hours during the back-to-school season, and due to positive feedback, they have decided to make it a permanent feature.

In addition to this initiative, Walmart has made other changes to accommodate customers' needs, including setting aside a grocery pickup hour for high-risk shoppers during the COVID-19 pandemic. The retailer is also investing over USD 9 billion to upgrade its stores with new features, layouts, and product selections.

Walmart adds sensory-friendly hours to all stores

What: Frasers Group has signed a binding agreement with Signa Retail Department Store Holding to acquire SportScheck, a leading German sports retailer.

Why it is important: The acquisition of SportScheck by Frasers Group is important as it allows Frasers to expand its presence in the German sports market.

The purchase price was not disclosed, and the completion of the deal is subject to merger control clearance, expected to be finalized in Q1 2024. This acquisition allows Frasers Group to expand its presence in the large European sports market and intensify its competition with JD Sports. SportScheck operates 34 stores in prime city locations across Germany, generating an annual revenue of approximately EUR 350 million and attracting over 13 million visitors each year.

Frasers Group plans to leverage its Elevation Strategy, which focuses on investing in store concepts, digital capabilities, and brand relationships, to enhance SportScheck's performance.

Frasers Group signs deal to acquire Germany's SportScheck

What: Falabella announced the creation of a new corporate management that is aimed at synching falabella.com and Falabella Retail.

Why it is important: The goal of the omnichannel management is to achieve greater efficiency and profitability for the company.

The new management will focus on improving the customer offering and enhancing omnichannel capabilities and will be led by the former general manager of falabella.com, Benoit de Grave starting October 1st.

Falabella announces its new omnichannel corporate general management

What: Saks Off 5th has announced the appointment of Kim Miller as its chief marketing and analytics officer.

Why it is important: Saks Off 5th has been making several executive team changes to strengthen its position in the market.

Miller will be responsible for overseeing customer analytics, insights and engagement, personalisation and loyalty, growth marketing, corporate strategy, and business development. She brings more than 20 years of experience in fashion, retail, and e-commerce to the role.

Saks Off 5th names Kim Miller Chief Marketing and Analytics Officer

What: Indian conglomerate Reliance posts better than expected results.

Why it is important: Retail operations contributed to the growth, thanks to their integration in a broader tech ecosystem allowing a “super app” proposal to customers.

Reliance Industries Ltd exceeded Q2F24 EBITDA predictions by 2%, primarily from impressive energy and retail sales, leading to a 27% rise in net profit to ₹17,394 crore. The company's consolidated revenue also saw a 1% increase, reaching ₹2.34 lakh crore for the quarter.

This positive performance is attributed to the completion of the 5G network and the growth of its retail ecosystem. While there were costs from commissioning MJ1, the company still surpassed Retail and O2C expectations. The company reduced its net debt by ₹8,000 crore, achieving a net debt of ₹1.2 lakh crore since March, aided by a ₹15,300 crore capital raise from retail venture stake sales.

In terms of outlook, analysts expect significant EBITDA growth for RIL's consumer sector, and it's a promising refining phase for RIL. Several financial firms maintain a positive stance on RIL's shares, citing potential growth in the retail sector and digital initiatives. Lastly, InvestingPro highlights RIL's strong financial position, noting its consistent dividend payments and growth.

Reliance Retail outperforms expectations

What: Unibail-Rodamco-Westfield (URW) has reported a 1.9% increase in sales for the first nine months of 2023, amounting to EUR 2.78 billion.

Why it is important: The first nine months' results were a record increase, and the company raised its financial targets for the full year, indicating positive growth and potential profitability.

Footfall in URW's shopping centres increased by 6.3%, while retail sales grew by 7.9%, surpassing the period's inflation rate of 5.6%. URW aims for a recurring earnings per share of at least EUR 9.50, up from the previously expected range of EUR 9.30 to EUR 9.50. The group continues to focus on reducing its debt and repositioning its presence in major European cities.

URW releases impressive Q3 results 

What: Saks and Dior have teamed up to create an immersive holiday experience called "Dior's Carousel of Dreams at Saks.”

Why it is important: This collaboration marks the first time Saks has partnered with a fashion house for such an event and can generate sales for the store as Dior’s collaboration with Harrods last year did.

As part of the collaboration, Saks will exclusively offer Dior merchandise on its website, including men's and women's ready-to-wear, accessories, maison and baby, as well as La Collection Privé Christian Dior. The flagship Saks store in New York City will be transformed into a winter wonderland, featuring a light show, a visual takeover of the facade, and an extensive holiday window display in collaboration with Dior. Additionally, Dior Parfums will have a dedicated pop-up space on Saks' beauty floor.

The CEO of Saks, Marc Metrick, expressed excitement about the collaboration, highlighting the power of the Saks Fifth Avenue brand and its partnerships with leading fashion brands. Delphine Arnault, CEO of Dior, also expressed delight and pride in the partnership, which pays tribute to the magic of the holiday season and the visionary fascination Dior had for the United States.

The holiday extravaganza will run from November 20 to January 5.

Saks and Dior team up to transform the NYC flagship 

What: Retail keeps on facing issues when it comes to recruiting new generations.

Why it is important: It is not only about replacing departing employees but also acquiring new competencies to address the new strategic issues.

In 2018, a student in New Jersey was excited to work as a "stylist" at a clothing store, only to discover the role was more akin to a typical sales associate.

Retail sales jobs have historically been low-paying and perceived as mundane in the US. However, challenges during the pandemic, such as a tight labour market and increased resignations, led retailers to reconsider their approach to these roles. Some retailers are rebranding these jobs with titles like "brand ambassador" or "stylist" and offering more perks, but many have not substantially improved the roles or increased pay enough to attract new workers.

Retail experts stress the importance of understanding employees' needs, similar to understanding customer needs. Features like flexible scheduling, clear communication channels with management, and recognition are valuable for modern retail workers. Although wages have increased recently, more than just monetary incentives are essential for job satisfaction. Retailers are urged to be transparent about job responsibilities and to genuinely invest in improving the retail employee experience.

Why retailers still need to fix their hiring approach to Gen Z

What: The new group CEO at Macy’s believes that Bloomingdale’s will be supporting the group’s growth in the coming years.

Why this is important: Bloomingdale’s and Macy’s are going to differentiate even further to widen their customer base.

The incoming CEO of Macy’s, Tony Spring, alongside the current CEO, Jeff Gennette, revealed that the company is capitalizing on the success of its brands, including Bloomingdale’s and luxury beauty store Bluemercury.

Spring, set to replace Gennette in February, has led Bloomingdale’s since 2014 and believes in the importance of product curation and improving customer experience. He emphasized Bloomingdale's as a growth vehicle without sidelining Macy's, as both cater to different customer bases.

Macy's announced plans to expand its "small-format store strategy", increasing the presence of smaller Macy's and Bloomingdale’s outlets, given the success of the smaller Bloomingdale's branches termed "Bloomie's". Gennette highlighted Macy’s strength in holiday retail, noting beauty and gifts account for over 40% of Q4 sales.

They have already initiated strategies for the next holiday season, confident in their holiday marketing approaches.

New Macy’s CEO Tony Spring interview

What: Walmart is making a renewed effort to establish itself as a fashion destination by revamping its apparel offerings and store layouts.

Why it is important: Walmart’s strategic shift towards fashion signals a potential shift in the affordable fashion market landscape.

The retailer has added over 1,000 new brands, including Reebok and Levi’s, and is working with designer Brandon Maxwell on two private labels. They are remodelling hundreds of its stores to make them more appealing for clothing shopping, with features like softer lighting and mannequin displays.

Despite past failed attempts to revamp its apparel category, Walmart believes the current economic climate and changing consumer attitudes present a new opportunity. The company aims to attract younger, fashion-conscious customers and capitalise on the trend of value-driven shopping.

Can Walmart finally crack fashion?

What: Central is planning a new project in central Bangkok, where there are already many mixed-use projects.

Why it is important: Thailand is a hub for retail and innovation, and competition is making the market accelerate significantly.

Central Pattana, a Thai mall operator, will invest THB 20 billion  (US$541 million) in a new development under the Central Park brand in Bangkok's central business district. This development will feature a shopping centre and office building, with the shopping centre set to open in Q3 2025. This venture is part of the USD 1.2 billion mixed-use Dusit Central Park project, anticipated to draw 25 million visitors yearly. Emphasizing "Legacy meets Luxury", the project aims to blend Thai heritage with global luxury standards. Wallaya Chirathivat, CEO of Central Pattana, likens the Central Park shopping centre's ambition to landmarks like New York’s Central Park. As of March's end, Central Pattana managed a vast portfolio of shopping malls, community malls, food courts, office buildings, hotels, and residences. The company recently revealed plans to construct 50 large retail projects within the next five years.

Central Pattana plans a new shopping mall in Bangkok, Central Park

What: Klarna has launched a new program called "Spotlight Fall" which includes 13 new products built upon Klarna's previous applications of AI by introducing features like shoppable videos and an AI-powered image search.

Why it is important: The company aims to bridge the gap between the physical and digital world by using AI to provide personalized recommendations and access to intelligence and context in retail.

According to Klarna, 80% of consumers expressed interest in having an AI shopping assistant. The image search feature allows shoppers to snap a picture of an item and find similar products with over 50 million store offers. Klarna's app also includes barcode scanning and a 10% cash-back program. The in-app shopping lens is available in several countries, including the US, UK, Germany, Sweden, Denmark, and Norway.

Klarna rolls out 13 new products for fall

What: Fenwick is profitable again, thanks to the sale of the New Bond Street store.

Why it is important: Is that a good sign?

Fenwick reported a pre-tax profit of GBP 57.1m last year, a significant turnaround from a GBP 5.2m loss the previous year, largely due to the GBP 430m sale of its New Bond Street store. Gross sales increased by 31% to GBP 315m, with online sales up 51% in the year leading up to January 28, 2023.

CEO John Edgar emphasized the importance of the sale in bolstering the company's transformation, allowing greater investment in digital avenues and physical stores, especially in Newcastle.

Despite some inconsistent trading this year, largely due to unpredictable weather, the company maintained a focus on full-priced sales and improved inventory management. Edgar is optimistic about the upcoming Christmas season and has no plans to close any stores, instead looking to potentially open more in strategic locations.

Fenwick returns to profits thanks to the sale of its London flagship

What: Duty free operator Heinemann goes digital and smart with its new store format in Copenhagen.

Why it is important: Department stores need to pay attention to what’s happening in travel retail to remain on par with tourists’ expectations.

Gebr.Heinemann has launched a digital 'experience space' at its travel retail store in Copenhagen Airport. Themed 'fluid perspectives', this innovative space has interactive digital floors showcasing moving water and screens offering details about the significance of water in Denmark. Five brands are currently featured in this pilot phase, including Narciso Rodriguez and MessyWeekend, all highlighting their environmental connections. The brands will rotate frequently, aiming to provide regular travelers with a constantly evolving experience.

On a separate note, Heinemann is set to expand its 'all yours' retail and F&B concept at Nuremberg Airport, merging duty-free, dining, and convenience into one space, doubling the current commercial space to 13,000 square feet. The brand is planning further expansions to other European airports.

Duty Free operator Heinemann releases new airport store format

What: Frasers Group is among the potential buyers for online bike retailer Wiggle, which recently entered administration.

Why it is important: The potential acquisition of Wiggle by Frasers Group is significant as it showcases the continued expansion strategy of Frasers and highlights the ongoing challenges faced by online retailers in the current market.

Frasers has been acquiring various companies in recent months, including German retail chain SportScheck and increasing its stake in Boohoo. Wiggle, which employs approximately 450 people, is still trading during the administration process. Frasers Group already owns Evans Cycles and bought online cycling retailer ProBikeKit earlier this year. The administration of Wiggle is being handled by FRP Advisory.

Frasers Group considers their bid to buy Wiggle

What: Amazon is testing a new feature called "Consult-a-Friend" within its app that allows shoppers to request, view, and manage friends' feedback on products.

Why it is important: The feature enhances the decision-making process as it allows Amazon shoppers to easily request and manage feedback from friends on products before making a purchase.

The "Consult-a-Friend" tool is being tested with select customers in multiple countries, including the US, Australia, Germany, and the UK. The feature aims to make sharing products with friends and family easier. Early testing shows that customers are particularly interested in getting feedback on apparel, shoes, electronics, and furniture items. Users can send products to anyone using the "share" button and toggle the "Ask for your friends' votes" button to receive feedback. Friends receive a message directing them to the Consult-a-Friend link where they can view product details and react using emojis or add commentary.

Amazon pilots collaborative shopping tool within app

What: Fenwick has announced plans to renovate its flagship store in Newcastle as part of a GBP 40 million investment program.

Why it is important: The company aim to create a modern and inviting shopping experience to attract new customers and maintain the store's market position.

The plans have been submitted to Newcastle City Council. The renovation will include creating a new central entrance on Northumberland Street and opening up ground-floor windows; Fenwick aims to create a "next generation" store and maintain its position as the preferred shopping destination in the region.

Fenwick sets out renovation plans for Newcastle flagship

What: AI might have what it takes in terms of decision-making capabilities to occupy the top job.

Why it is important: Is AI a tool or a threat to retail CEOs?

A recent survey by edX revealed that 49% of CEOs believe AI could replace "most" or "all" of their duties. However, the specifics of which tasks AI would take over were not detailed. While edX's founder, Anant Agarwal, suggests AI will transform the CEO role by removing mundane tasks and allowing a focus on core responsibilities, skepticism remains about the real-world applications of such claims. While AI's introduction can ease some administrative tasks for CEOs, its more profound impact will likely be on guiding companies through AI's broader implications, managing AI-driven workforce changes, and setting ethical standards for AI use. The survey also indicated that executives knowledgeable in AI have better chances of promotion, with 85% believing their next CEO will have AI experience.

Will AI replace CEOs?

What: Frasers has submitted a planning application for a new global headquarters campus in Ansty, Rugby, Warwickshire.

Why it is important: Frasers Group aims to use this move to support its elevation strategy, sector-leading ecosystem, and growth ambitions.

If approved, the move will create 7,500 jobs and contribute GBP 300 million in gross value added to the region. The new campus, designed by Grimshaw Architects, will include logistics space, offices, R&D facilities, retail outlets, a hotel, and leisure facilities. The proposal also includes a gym and bookable courts and pitches that will be open to the public.

In a cost-cutting and streamlining effort, Frasers Group plans to reduce up to 200 head office jobs, accounting for around 20% of its staff in London and Shirebrook. This decision is part of a broader restructuring plan following strategic acquisitions and progress in implementing the elevation strategy.

Frasers Group plots HQ move

What: HBR reviews how AI could be best used by retailers.

Why it is important: More than using AI to cut on costs as we advocate, they believe that it will give an edge to retailers eager to create connections with customers.

The rise of generative AI is sparking both innovative consumer experiences and concerns, especially regarding data privacy and reduced human interaction in sectors like banking and healthcare. While every new technology brings apprehensions, many companies are prioritizing ethical data use and accuracy in their AI strategies. However, there's a potential risk of businesses leaning too heavily on short-term, profit-driven AI models, leading to diminished customer experiences.

In this AI era, the focus should remain on the customer. While metrics to gauge customer sentiment might evolve, the essence remains: every interaction shapes a customer's brand perception. Prioritizing enriching experiences can help businesses navigate an AI-driven future, with studies already showing the benefits of AI tools in enhancing productivity and customer satisfaction.

A pivotal aspect of the AI revolution is personalization. Traditional algorithms might focus on instantaneous returns, but AI promises deeper, more insightful interactions, as shown by banking surveys and examples like the Royal Bank of Canada's digital assistant, NOMI. Furthermore, AI tools not only benefit customers but also empower employees to build stronger client relationships, with large language models now enabling more tailored interactions based on unique customer patterns.

To integrate generative AI effectively, businesses should first adopt tools that augment human capabilities, like AI-driven suggestions for customer interactions. As AI's role grows, we can expect more deeply embedded applications, from predictive call routing to real-time interaction suggestions. Yet, it's crucial that businesses view AI not just as a cost-saving measure but as a means to enhance customer experiences. In the end, companies that prioritize their customers will thrive in the AI age.

Harvard Business Review on using AI to emotionally connect with customers

What: Walmart announced that it will no longer require degrees for some corporate jobs, as part of a broader effort to eliminate unnecessary barriers to career advancement.

Why it is important: By adopting a "skills-first" hiring process, employers like Walmart can expand their talent pools and enhance diversity, equity, and inclusion efforts. The move reflects a growing focus on skills among employers nationwide.

Job descriptions will be redefined to consider relevant degrees or the skills needed for the job, obtained through previous experience or alternative types of learning. This decision aligns with the trend of both private-sector and public-sector employers eliminating or reducing degree requirements for certain positions.

Walmart has not specified the specific skills they will be seeking, but some employers have moved away from degree requirements for jobs that require AI skills, rather than waiting for the availability of graduates in the field.

Walmart scraps degree requirements for some corporate jobs