What: Macy's Inc. plans to expand its small-format store network, potentially tripling its total number of small-format stores by fall 2025.

Why it is important: Macy's aims to leverage its brand to deliver sustainable and profitable sales growth through this small-format strategy.

The company intends to open 30 new Macy's small-format locations across the United States, starting in 2024. The specific locations and timing have not been disclosed yet. These small-format stores offer a convenient shopping experience in an open environment that is approximately one-fifth the size of full-line stores, providing customers with a curated selection of products.

Over the past three years, Macy's small-format stores have achieved positive sales growth, and the company has focused on creating a unique shopping experience with convenience, curated merchandise, local events, and services. Currently, Macy's operates 15 small-format stores.

Macy’s to open up to 30 small-format stores by fall 2025 

What: Showfields Inc., a retail company, has filed for bankruptcy and secured financing for restructuring.

Why it is important: The company is navigating how to maintain their outstanding liabilities while still expanding into new markets.

While the amount of funding obtained from existing investors remains undisclosed, the new funds will be used to cover expenses related to store closures, outstanding bills, marketing, and expansion of the Brooklyn store.

Showfields is utilizing the Small Business Reorganization Act, Subchapter V, to restructure without creditors taking control. Despite the restructuring, the company's plan to launch stores in Europe is still underway.

Showfields operates on a fee-based model, charging brands to display their products in their stores. The company overhauls its merchandising every six months with a new assortment of brands.

Showfields is restructuring and gets new financing

What: A piece from Microsoft arguing how AI could help people in cyberdefence to be more prepared against threats, at a fraction of the cost.

Why it is important: Should department stores focus on AI applied to cyberdefence to kill two birds with one stone instead of focusing on customer-facing interfaces?

The rapid innovation in technology also means a constant evolution in cyber threats.  Historically, defenders have faced challenges as attackers can strike anywhere, anytime, often taking months to detect.

However, as technology becomes even more integral in our lives, there's a pressing need to empower defenders against cyberattacks. AI has the potential to be this game-changer, offering real-time insights and defenses against threats.

Generative AI, a result of years of research, will be transformative for cybersecurity, providing tools that anticipate and prevent attacks. Modern AI models can be harnessed to enhance security measures, enabling faster breach detection and threat response.

Meanwhile, the security industry faces challenges like talent shortages and lack of diversity. AI can help bridge these gaps, providing training and assistance for new entrants and optimizing the tasks of experienced professionals. The security industry needs to be as diverse as its adversaries.

To harness AI's full potential, the industry must embrace varied perspectives, ensuring that this transformative technology benefits everyone.

AI shifts the balance of powers in cybersecurity

What: John Lewis chairwoman Sharon White expressed concerns about the safety of store staff due to an increase in organized gangs targeting high-value items.

Why it is important: The rise of organized gangs targeting high-value items and the lack of police response poses a threat to the safety of store staff and results in substantial financial losses for retailers like John Lewis.

White stated that the lack of police response has reduced the fear of punishment for these criminals. The rise in shoplifting this year has cost John Lewis an additional GBP 12m compared to last year. White, along with other retail bosses, is calling for tougher enforcement on shoplifting and the classification of assault or abuse of retail workers as aggravated offenses. She also mentioned that there has been no noticeable increase in police response to shoplifting despite retailers' demands.

The government recently launched a Retail Crime Action Plan to combat shoplifting. However, White believes that the lack of response signifies a "profound break in the social contract" for both the public and businesses.

John Lewis boss fears for store safety as ‘organised gangs’ turn to shoplifting

What: Walmart's Chief Sustainability Officer, Kathleen McLaughlin, discussed the company's ESG priorities and challenges during the 2023 Goldman Sachs Global Sustainability Forum.

Why it is important: Walmart aims to be a role model for other businesses in the realm of environmental, social, and governance (ESG) issues.

McLaughlin highlighted the importance of shifting consumption towards a circular approach and addressing challenges related to data and the political environment. Walmart's ESG efforts are focused on economic opportunities for workers and suppliers, sustainability in retail operations and supply chain, strengthening communities, and maintaining ethics and integrity. McLaughlin mentioned the company’s decision to utilise EV vehicles for its last-mile fleet but also how there are issues with getting the technology and batteries that can replace its heavy tractors due to the vehicles’ loads and distances. Walmart’s Project Gigaton initiative to reduce or avoid supply chain emissions by 1 billion metric tons by 2030 has now engaged more than 5,000 suppliers.

The company considers corporate governance and digital citizenship as crucial aspects of its international business practices and has made progress by collaborating with Pepsi on a USD 120 million investment in regenerative agriculture. The retailer recognizes its global visibility and takes into account the expectations of all stakeholders.

Walmart’s chief sustainability officer talks ESG priorities, challenges

What: Shin Yoo-yeol, Lotte Group's Heir Apparent, is set to revitalise the struggling retail business.

Why it is important: Shin Yoo-yeol taking on a more prominent role in Lotte Group's retail business is a generational shift to inject fresh momentum and strengthen the company's struggling retail channels.

While specific details about his responsibilities have not been confirmed, Shin has been making more public appearances at key Lotte Group events. He attended the group's leadership meeting earlier this year, where the chairman emphasized the need to strengthen Lotte's global competitiveness. With his international experience and Japanese nationality, Shin may focus on overseeing Lotte's overseas operations. He currently holds positions at Lotte Strategic Investment and Lotte Financial and joined Lotte in 2020 for management succession.

Lotte’s third-generation heir to tighten grip on retail business

What: Fenwick is looking, just like John Lewis, for new development routes.

Why it is important: Entering the restaurant business is a bold move, and raises the question to do it under the umbrella name, Fenwick, and not their restaurants name, Fuego

Fenwick is scouting for a 3,000sq ft pilot site for its Fuego restaurant, focusing on locations like Newcastle and Surrey.

While Fuego has outlets in cities like Kingston, Newcastle, Bracknell, and Brent Cross, Fenwick also operates a café-style branch in Canterbury. The company sees potential in introducing its patisserie brand, Mason & Rye, to the high street.

Restaurants within Fenwick contribute over 10% of the company's total sales, emphasizing their quality offerings, including in-house pastries for Mason & Rye. Fenwick has nine stores in the UK, with diverse F&B options in their Newcastle store and a notable vegan sushi restaurant in their soon-to-close London store.

Fenwick is eyeing standalone restaurants

What: The Council of the European Union has voted for revised legislation to strengthen the framework for split and deferred payments.

Why it is important: Concerns have been raised about the potential impact on interest-free short-term credits, which may face the same regulatory burden as long-term credit.

This legislation aims to regulate credits of less than EUR 200 and Buy Now Pay Later offers, which have seen significant growth in recent years, especially among younger consumers. Service providers offering these credits will be required to clearly present the total cost of repayment and ensure that customers are able to repay their loans. Consumers will also have a 14-day period to cancel their credit.

The revised legislation also includes stricter rules on advertising to reduce abusive credits and measures against overbilling.

The European Union will strengthen the framework for split and deferred payments

What: Neiman Marcus Group CEO, Geoffroy van Raemdonck, discussed the luxury retailer's transformation strategy.

Why it is important: The CEO highlights the company's efforts in building relationships with luxury brands and top customers, despite a negative sales trend in the fourth quarter of fiscal year 2023.

Fiscal year 2023 sales were relatively flat compared to the previous year, and revenue in the fourth quarter of 2023 saw double-digit growth compared to the same period in 2019. NMG's liquidity stood at USD 1 billion, allowing for investments in the supply chain, distribution centres, and store renovations. The company also saw a nearly 20% increase in business with its top customers, who spend an average of USD 25,000. Notable designer labels at NMG include Chanel, Dior, Gucci, Brunello Cucinelli, Christian Louboutin, and Louis Vuitton.

While NMG faced pent-up demand early in the year, business normalized and has been consistently ahead of 2019 levels. The company added 800 points of distribution with designers over the past two years, and almost 200 new and emerging brands were added to its assortment. NMG experienced softening in business with its aspirational customers, leading to increased promotionality. Efforts to manage inventory resulted in a relatively flat position compared to the previous year, despite some pressure on profitability in the fourth quarter.

How Neiman’s transformation is working out

What: The Robin Report reviews the evolution of DTC stores at Nike and how they used the learnings on the way to craft their new iteration.

Why it is important: Nike is not about sport or performance, but wellness, which is a lucrative USD 1.5bn market.

Nike introduced its House of Innovation as a blend of an interactive museum and store in 2018, with locations in New York, Paris, and Shanghai. As part of its "Move to Zero" sustainability initiative, Nike has pledged to produce products with at least 20% recycled content, achieve 100% renewable energy in their facilities by 2025, reduce carbon emissions by 30% by 2030, and divert 99% of footwear manufacturing waste from landfills.

Parallelly, Nike shifted its retail strategy by cutting ties with some long-term wholesalers and focused on localized and personalized retail experiences, launching several prototype store concepts, such as Nike Live and Nike Rise. The recent addition is the "Nike Well Collective" stores, which focus on holistic fitness, particularly tailored for women, and are designed according to the local market needs.

Nike is promoting its Direct-to-Consumer (DTC) model without sidelining its wholesale commitments, exemplified by a collaborative approach between the new Collective stores and Dick's House of Sport, whereby they refer customers to each other based on merchandise availability. The goal is a harmonious balance between DTC and wholesale channels.

Nike’s DTC stores development culminates with the new Nike Well Collective

What: Microsoft plans to help retailers willing to go retail media.

Why it is important: The race to retail media is going to intensify soon.

Microsoft has unveiled a new advertising network for U.S. retailers to streamline the initiation of retail media campaigns. This platform connects retailers with a broad consumer base, amplifies their offsite reach to boost website traffic via co-branded ads, and introduces an alternative purchasing route. Even those with their own retail media marketplaces can tap into this network for extra high-margin revenue. Establishing a retail media program usually demands considerable effort and resources, but Microsoft promises a swift and profitable program launch. The tech giant acquired PromoteIQ, which later became Microsoft Retail Media, to aid retailers in enhancing shopping experiences. Retailers now leverage AI and ML to offer tailored ads. Insider Intelligence reports underscore the growing influence of retail media in search ad spending, with Amazon dominating the scene. U.S. retail media search ad income is predicted to grow significantly faster than other search advertising in the current year.

Microsoft goes Retail Media

What: Weak signals on the art market are no good for the luxury industry.

Why is that important: any downturn in luxury will affect department store businesses, where the category has been a lifesaver so far.

Art collectors in Hong Kong recently faced hesitation from bidders, leading auction house Phillips to advise sellers to reduce prices. They mentioned at a summit that artworks, which once sold at thrice their auction estimates, are now fetching around half that.

Concurrently, luxury goods, closely linked to contemporary art, are seeing shifts. Shares of LVMH, which owns brands like Dior and Louis Vuitton, dropped by 7% after disclosing slowing sales. While LVMH still reported strong revenues, there was a deceleration in growth from 17% to 9%.

This could be a gentle sobering from post-pandemic consumption or a return to cyclical luxury spending. Factors like global conflicts and China's restrictions on wealth export also impact luxury and art sales.

Despite this, luxury brands still largely depend on the super-rich; a small shift in their purchasing habits can impact majorbrands. LVMH's Arnault remains optimistic about continued growth, but adapting to changing markets is crucial for both art and luxury sectors.

The art market might give a glimpse of what luxury retailers should expect

What: a full feature about Steen & Strom in a glossy magazine.

Why it is important: Steen & Strom is winning its bet to revamp and be perceived as a global luxury destination.

Steen & Strøm is the historic art deco department store in Oslo, Norway. It opened in 1797 as a grocery shop and is now a 6-story luxury fashion hub.

Promenaden Management is the property company that manages Steen & Strøm as well as the Nedre Slottsgate luxury fashion district in downtown Oslo.

In the late 2000s, Promenaden began buying up properties in central Oslo with the goal of creating a high-end shopping district.

Promenaden has brought in luxury brands like Louis Vuitton, Chanel, Dior and Hermes to open stores on Nedre Slottsgate.

Promenaden and Steen & Strøm aim to support and showcase local Norwegian fashion brands alongside international luxury names.

The success of the luxury district has helped establish Oslo as a global fashion capital and destination for high-end shopping.

Norway’s Steen & Strom featured in Monocle Magazine

What: Marks & Spencer has announced the relaunch of its 'Early Careers Programmes' for 2024, increasing the number of available places fourfold.

Why it is important: Increasing the availability and scope of the 'Early Careers Programmes'  helps the company identify, develop, and nurture talented individuals who can become future leaders in the retail industry.

The programs have been redesigned to focus more on the in-store experience and are aligned to key business areas such as Retail and Clothing & Home. The Retail Leaders Programme aims to attract 114 participants, including 38 school leavers and 76 graduates, reflecting M&S's commitment to developing future leaders. Participants in the program will gain hands-on experience from day one and by the end of the two- or three-year program, they will be managing their own store. M&S CEO Stuart Machin has been personally involved in shaping the programs, drawing on his own career trajectory.

M&S boosts Early Careers Programmes in search for future retail leaders

What: Chinese travels are recovering fast, but not as fast as expected by the government.

Why is that important: the country is accelerating toward normalization, but the government’s unmet optimism shows some febrility.

China's domestic travel during the eight-day Golden Week holiday surpassed previous pandemic levels and increased by 71.3% compared to last year, with 826 million domestic trips. Data from the Ministry of Culture and Tourism revealed these figures were up 4.1% from 2019. However, this growth was slower than the increases seen during other holidays earlier in the year, indicating a deceleration in the service sector's recovery, as noted by Goldman Sachs.

Despite the travel surge, the figures fell short of the government's forecast, which had anticipated 896 million trips generating CNY782.5 billion ($108.75 billion) in revenue. Actual revenue was recorded at CNY753.4 billion, a considerable rise from the previous year and a 1.5% increase from 2019.

In terms of international travel, inbound and outbound trips during the holiday recovered to 85% of the pre-pandemic figure, but this too was below government predictions. Retail sales by major companies grew by 9% compared to last year, while the nation's movie box office saw revenues of CNY2.7 billion, higher on a daily basis than 2022 but lower than 2019 and 2021. Meanwhile, China's property sector appears to be facing challenges, with new-home transactions in selected cities dropping approximately 20% compared to both last year and 2019 figures.

China travel continues recovery during golden week, but below Government expectations

What: India sees a surge of retail square meters in all categories.

Why it is important: Are you ready to see India become a retail giant?

Retail space leasing surged by 46% across eight cities to 4.73 million square feet from January to September, compared to 3.23 million square feet in the same period the previous year, as reported by CBRE. Bengaluru, Delhi-NCR, and Pune combined contributed to over 61% of this leasing activity.

Anshuman Magazine, CEO of CBRE in multiple regions, highlighted the impressive growth in retail absorption and anticipated a further increase due to the festive season.

The retail sector is undergoing significant transformation, with a focus on enhancing in-store experiences. The primary sectors contributing to leasing were fashion & apparel (34%), home & department stores (17%), and food and beverage (13%). The report also provided specific leasing figures for various cities.

Retail space in India is increasing +46%

What: Saks Fifth Avenue is showing support for mental health initiatives by donating a portion of the purchase price of items in their branded collection.

Why it is important: The company’s support for mental health initiatives and organizations helps increase access to resources and prioritise mental health care in vulnerable communities as well as show their commitment to helping meaningful causes to all stakeholders of the foundation.

At least 50% of the proceeds will go towards supporting mental health resources and initiatives through the Saks Fifth Avenue Foundation. The collection includes hats, gloves, blankets, T-shirts, hoodies, and sleepwear, all made in Italy and featuring the Saks Fifth Avenue logo. The collection is available for purchase on the Saks Fifth Avenue website.

Additionally, the Saks Fifth Avenue Foundation is providing grants totalling USD 250,000 to nonprofit organizations that support mental health, with a focus on diverse communities and disadvantaged groups.

Saks furthers support for mental health

What: A piece exploring the reasons why Sharon White is the shortest chairman at John Lewis in the history of the retailer.

Why is it important: John Lewis has been struggling for the past decade or so, and is in need of a structural fix.

Sharon White's decision to leave her role as the boss of John Lewis took many in the company by surprise. Her tenure of five years will make her the shortest-serving chair in the company's history. Her leadership came at a challenging time, as she joined just before the COVID-19 pandemic, which turned many city centers into ghost towns. White faced scrutiny for various strategic moves, including store closures, slashing debt, and restructuring efforts. However, she was also criticized for her lack of retail experience and her decisions that seemed to divert focus from the core retail business.

Some criticized her leadership style, suggesting she wasn't listening enough to experienced staff. There were also concerns about her political decisions and the potential sale of significant assets. Her successor will need to decide whether to continue with her strategies or shift direction. As she departs, there are rumors of her potential involvement in a senior role within a new Labour government. The future of John Lewis now hangs in the balance, especially with an upcoming important Christmas season.

Was Sharon White too clever for retail?

What: Thai luxury mall Siam Paragon opens a space dedicated to innovation, accessible to all.

Why it is important: Due to the local competition, Thailand is now a strategic scene in terms of retail innovation.

Siam Paragon, a renowned shopping center in Bangkok, in partnership with SCBX, has unveiled the Siam Paragon Next Tech x SCBX. This is described as a collaborative tech ecosystem dedicated to learning, technology, investment, and social media.

Established with an investment of over 200 million baht (about $5.48 million), this 4,000 sq.m. hub promotes the exchange of knowledge and is designed to prepare individuals for the digital age.

Its grand launch gathered influential tech figures from companies such as NFT Now, Microsoft, and Ant Group. Siam Paragon views this initiative as a pioneering platform for collaborative innovation, aiming to redefine lifestyles for the "World of Tomorrow". The concept emphasizes co-creation and sustainability, with initiatives like the 'Trusted By Synnex E-Waste' project for electronic waste management. SCBX aims to make this facility a cornerstone for fintech in the region, featuring areas dedicated to developers, innovation workshops, and financial tech showcases. Seven "Future Communities" focus on areas such as blockchain, health tech, AI, gaming, and social media. Moreover, a dedicated stage for events can host up to 300 people for seminars and art displays.

Siam Paragon intends to invest over 3 billion baht (approximately $81.4 million) this year in its transformation.

Siam Paragon unleashes collaborative digital tech ecosystem

What: House of Fraser may disappear from the high street as part of a major rebranding effort, according to CEO Michael Murray.

Why it is important: Murray stated that House of Fraser was a failing business that needed significant changes in its operating model.

The company plans to move away from the traditional department store model and focus on a premium concept filled with its own brands and it intends to downsize some of its larger stores, as most department stores could achieve the same turnover in half the space.

Frasers Group, the parent company, has seen a significant increase in profits— from GBP 335.6m last year to GBP 660m—  due to its diverse range of brands and focus on capturing a younger demographic.

House of Fraser could vanish from high street 

What: While Indonesian regulation was a premiere, and some European countries might follow suit, TikTok is actively looking for ways to go around regulation.

Why it is important: Department Stores can not count on regulation to escape TikTok and need to polish their competitive advantages instead.

TikTok, owned by Beijing-based ByteDance, is devising strategies to sustain its ecommerce arm in Indonesia, which is its largest market. This move comes after Jakarta banned transactions on social media platforms, a decision seen as primarily targeting TikTok's shopping platform launched in Indonesia in 2021.

TikTok's response includes the idea of creating a separate online commerce platform distinct from its video app, to appease regulators.

The ban impacts approximately 6 million sellers and nearly 7 million influencers on TikTok Shop in Indonesia.

Previously, ByteDance had aspirations of achieving around $6 billion in gross merchandise value in Indonesia for 2023. Indonesia was the foremost and most significant market for TikTok Shop, indicating a potential model for other markets. Still, ByteDance has had challenges in the west replicating the popularity of its in-app livestream shopping model.

Management is considering partnerships with local retail entities, such as technology leader GoTo, to resume ecommerce operations. Concerns exist about the implications of creating a separate app for other markets, particularly if it sets a precedent for markets like the U.S.

Some analysts believe TikTok should abandon its Indonesian ecommerce ambitions to prioritize opportunities in larger markets like the U.S.

TikTok shops around for options in wake of Indonesia app ban

What: A piece from the FT about how much luxury packaging has impacted our psychology in the past 40 years.

Why it is important: For department stores, the notion of image carried through the packaging is even more important today.

At the Sprüth Magers gallery in London's luxury district, Swiss artist Sylvie Fleury's installation showcases dated, possibly empty, luxury-branded bags such as Prada, Versace, and Chanel. Originally introduced in the early 1990s, these bag installations provoke reflections on the powerful allure of luxury branding and our consumerist tendencies. Fleury's work underscores the power of luxury packaging, which has historically signified a certain status. Professor Paurav Shukla comments on the design and appeal of luxury bags, associating their design with feelings of love and gratitude. The growth of online luxury shopping and the emergence of a secondary market for luxury packaging on platforms like eBay emphasize the persistence of this allure. Fleury's London exhibition further delves into consumerism themes, while avoiding a moralistic stance on the subject.

Luxury packaging tells a lot about customers… and the faith they put in retailers

What: M&S has launched its first dedicated menswear campaign since 2015, called 'Anything but Ordinary'.

Why it is important: M&S hopes that this campaign will reinforce its journey to elevate its style credentials and challenge the existing perception of the male audience.

The campaign aims to inspire menswear customers with outfitting ideas and different ways to wear key pieces during the Autumn/Winter season. It focuses on easy-to-style smart separates, versatile wardrobe staples, elevated outerwear, and tonal dressing. It was shot at the Salford Lads' & Girls' Club in Manchester and is supported by a comprehensive marketing plan.

M&S launches first standalone menswear campaign in eight years

What: The Selfridges Corner Shop in London will showcase the collaboration between Prada and Magnum Photos that explores the relationship between humanity and nature through photography.

Why it is important: The exhibition boosts Selfridges' image as a retailer that goes beyond mere shopping and provides a platform for meaningful and immersive experiences.

The project will showcase 150 works of photography in an exhibition titled "Witness to Nature,” which features our key themes and eight photographers, including Paolo Pellegrin, Trent Parke, Cristina García Rodero, Cristina de Middel, Nanna Heitmann, Alec Soth, Hiroji Kubota, and Newsha Tavakolian. The themes explore topics such as transformation, costumes and cultures, community and seclusion, and the effects of global warming.

The exhibition will be displayed through November 11th and will then travel to other international cities. In addition to the exhibition, customers will be able to shop for items that reflect the photography and the attire of nature photographers. These items will be available at Selfridges Corner Shop.

Prada Reporter debuts at Selfridges Corner Shop