What: John Lewis is criticised for the lack of social housing in sufficient proportion in its housing programme.

Why it is important: Diversification is not easy as it forces to confront to new problematics.

London officials criticised John Lewis for planning to build a flagship development in Bromley with potentially as low as 10% affordable housing. Though John Lewis initially aimed for 20% affordable units, the Greater London Authority Planning Unit found this insufficient given the project's scale. The retailer plans to construct 353 flats above a Waitrose store. Discussions are ongoing with the goal to increase affordable housing in the development to 35%.

John Lewis criticised for its housing programme social aspect

What: Saks Fifth Avenue has unveiled "The Studio" on the 10th floor of its Manhattan flagship store as a new format aimed at attracting talent.

Why it is important: The goal is to attract talent that prefers working in the Saks ecosystem but may not be interested in traditional retail settings.

The Studio offers a space for personal shoppers, digital sellers, independent stylists, and influencers to promote and sell merchandise from Saks. The initiative is a response to the increasingly remote and independent work styles of style advisors who generate business outside traditional selling floors. The Studio provides access to Saks merchandise, along with resources such as filming sets, a photo studio, and workstations for content creation.

Saks sees this as a long-term commitment and an innovative approach to driving productivity and attracting talent. The move follows the shelving of a previous plan to open a casino on floors nine to eleven of the flagship store.

A new format for the Saks Fifth Avenue flagship

What: Visa argues that second-hand is poised to grow given the increasing inflation and growing environmental concerns.

Why it is important: If this is the new trend, how can it become profitable for retailers? For now, no-one has found the solution.

The circular economy is gaining traction globally due to increased environmental concerns, policy drives for resource efficiency, and shifting consumer preferences towards sustainability. Factors like high inflation, evident in spikes in the UK and Australia, have led consumers to opt for second-hand goods.

Visa data reveals increased card transactions in used merchandise stores during these inflation periods. Technology, particularly digital apps, have facilitated the growth of the circular economy. For instance, there was a 200% surge in the UK's resale app usage in 2022. The fashion industry is a significant player, with the second-hand market projected to surpass fast fashion by 2029.

The sector could also create new commerce platforms and payment infrastructures. AI and blockchain will further enable the circular economy, from product lifecycle management to supply chain transparency.

As inflation promotes circular consumption behaviors, technology, coupled with a robust payment ecosystem, will catalyze the circular economy's expansion.

Fashion resale apps enable circular economy’s broadening appeal

What: The European Commission has given its approval to Farfetch's acquisition of a 47.5% stake in Yoox Net-a-porter (YNAP).

Why it is important: This partnership aims to accelerate the online presence of Richemont's brands and establishes YNAP as a neutral online platform for the luxury industry.

The deal, which was announced in August 2022, was also approved by the UK Competition and Markets Authority. The completion of the acquisition is still subject to certain conditions that Farfetch and Richemont, YNAP's parent company, are working towards fulfilling. Richemont plans to sell a majority stake in YNAP to Farfetch and Alabbar, its partner in the Middle East. After the deal is finalized, Richemont will hold a 49.3% stake in YNAP.

Farfetch is expected to acquire the entirety of YNAP over the next five years. In exchange, Richemont will receive Farfetch Class A ordinary shares, representing around 12 to 13% of Farfetch's issued share capital.

European Commission approves Farfetch acquisition of YNAP

What: Walmart's Mexico unit, Walmex, reported a 12.2% increase in net profit for the third quarter compared to the same period last year.

Why it is important: The significant increase in net profit and stronger sales for Walmex demonstrates the company's financial growth and success in the market.

The growth was primarily driven by higher sales. The company generated a net profit of MXN 13.63 billion (USD 782 million) during the quarter. Quarterly revenue rose by 7.7% to reach MXN 213.07 billion, slightly below the estimated figure. Walmex noted that its revenue was impacted by the appreciation of the Mexican peso, and without foreign exchange effects, its sales growth would have been even higher. Walmex experienced sales growth of 9.5% in Mexico and 9% in Central America.

The company opened 24 new stores in Mexico and three in Central America during the quarter, contributing to the increase in revenues. Earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 8.5% to MXN 23 billion. Walmex exceeded the estimated earnings per share, with MXN 0.78 compared to the expected MXN 0.74.

The company is currently facing an antitrust panel for alleged monopolistic practices after a three-year investigation. Walmex is confident in its compliance with the law and will defend itself against the allegations. If found guilty, the company could face a fine of up to 8% of its annual income in Mexico.

Walmart Mexico Q3 net profit jumps more than 12%

What: Macy's has launched a new digital fashion platform called "mstylelab" that offers immersive experiences for shoppers.

Why it is important: The "mstylelab" platform aims to redefine fashion by seamlessly integrating immersive experiences and technology, empowering discovery, self-expression, and connectivity for both existing and new shoppers.

The platform features a metaverse journey where users can navigate a surrealistically depicted New York City and explore styles from Macy's On 34th private brand. The experiences on mstylelab are shoppable, allowing users to add items to their shopping cart. The platform aims to connect with existing Macy's customers and attract new ones, especially those who are more web- and tech-inclined. The next activation on mstylelab will focus on the Macy's Thanksgiving Day Parade.

Macy's partnered with Journee, a company specializing in immersive digital spaces, to create the mstylelab fashion experience. The platform is accessible on any device, using any browser, at macys.com/mstylelab.

Macy’s launches ‘Mstylelab’ digital fashion platform

What: The FT reviews what is currently at stake at Louis Vuitton and how the brand plans to reach the €30bn mark.

Why it is important: LV is increasingly identifiying itself as a “cultural brand” rather than a luxury one. Department Stores should observe and apply some of LV’s recipes to their own branding.

Louis Vuitton, a fashion house owned by LVMH, has experienced impressive growth, doubling its size in the past five years to surpass €20bn in annual sales.

Its success is attributed to its positioning as a cultural brand, rather than just a fashion label. In recent times, Louis Vuitton's visibility has been boosted by stars like Zendaya and collaborative ventures such as the appointment of entertainer Pharrell Williams to design menswear, even though men's fashion only accounts for about 5% of the brand's sales.

Despite these successes, LVMH sales slowed to a 9% growth in the recent quarter, down from 17% in the previous three months.

Regardless, HSBC predicts the brand will achieve €30bn in sales in upcoming years. Expansion opportunities in areas like perfume, cosmetics, and potentially hospitality are also on the horizon.

However, there are challenges ahead. The brand's womenswear line is perceived as weaker, and there's concern that the brand's growth could make it seem less exclusive. Recent market trends also show a softening in the luxury sector, with LVMH's share prices falling.

Louis Vuitton juggles volume and value as luxury boom ebbs

What: China domestic aviation regulation expects domestic flights to increase +34% vs. prepandemic levels in 2023-2024.

Why it is important: Domestic retail has significantly increased in the country since the pandemic, but is it at the expense of international travel?

China's aviation regulator plans to increase domestic flights by 34% compared to pre-pandemic levels, aiding the recovery of Chinese airlines. Following this announcement, China's top airlines reported their first quarterly profits in over three years, indicating a positive turnaround from the COVID-19 pandemic's impact. The Civil Aviation Administration of China's new flight schedule, active until March 30, will introduce 7,202 new weekly flights from 516 new domestic routes, resulting in a total of 96,651 domestic flights weekly.

Flights in China to increase beyond prepandemic levels

What: Netflix is planning to open physical stores across the globe by 2025, offering restaurant areas, souvenir shops, and immersive shows.

Why it is important: The move towards physical stores is seen as a logical strategy to further engage fans and expand the Netflix brand.

These stores, called "Netflix Houses," aim to promote Netflix content and provide a mini-Disneyland-like experience. The platform has previously opened pop-up stores and immersive experiences inspired by its series, but these new stores will be permanent establishments. Currently, only two stores are planned in the United States, but more will appear in major cities worldwide. The restaurants in these stores will offer dishes inspired by Netflix series and upscale culinary experiences.

Netflix to open permanent physical stores 

What: Kering Group experienced a 13% decrease in revenue in the third quarter.

Why it is important: This decline reflects the ongoing slowdown in the luxury industry.

Gucci, the largest brand under Kering, saw its sales decrease by 14% on a reported basis and 7% on an underlying basis. Yves Saint Laurent and Bottega Veneta also experienced declines in revenue. The "other houses" division, which includes brands like Balenciaga and Alexander McQueen, saw a 19% decrease in sales. Despite the challenging market conditions, Kering aims to strengthen its brands and distribution through recent acquisitions and internal restructuring. The acquisition of Creed, a luxury fragrance house, is expected to boost Kering's ambitions in the beauty sector.

Kering Group revenue falls 13% in Q3

What: Nordstrom has announced the appointment of Lisa Price as the Chief Human Resources Officer, effective November 6th.

Why it is important: With nearly 30 years of experience in the retail and hospitality industry, Price will oversee various aspects of human resources, including recruitment, learning and development, diversity and inclusion, and rewards.

Price has previous experience at Nordstrom, where she served as Senior Vice President of Human Resources from 2015 to 2019. Nordstrom's CEO expresses confidence in Price's expertise and believes that her focus on creating an exceptional employee experience will enhance customer service.

Nordstrom appoints Lisa Price as Chief Human Resources Officer

What: As the chairman just announced her departure in 2 years, making it the shortest tenure in the history of the retailer, the company maintains its plans to diversify towards housing

Why it is important: Many critics argue this is making the company lose focus on its core mission. Advocates maintain this is a way to address the future.

John Lewis Partnership (JLP) is advancing its property-to-rent initiative, aiming to develop its brownfield sites for housing. This decision remains steadfast even as chairman Sharon White, who initiated this plan, is set to depart at the end of her term. Nina Bhatia, JLP's executive director for strategy and commercial development, highlighted the company's substantial property estate, indicating its potential for creating quality housing on brownfield sites. The plan involves offering long-term rental options, including affordable housing, without selling the homes. While the scheme addresses the UK's housing shortage, some criticize it for shifting JLP's attention from retail, especially when their John Lewis and Waitrose chains face challenges. Initial developments target London, where a significant portion of the population rents. JLP views this venture as an opportunity to enhance local communities, creating jobs, new communal spaces, and introducing new Waitrose shops – which also serve as John Lewis click & collect locations. Investment firm Abrdn is backing the Build to Rent business with a £500 million investment, aiming to construct 1,000 homes. JLP aspires for this project to constitute 40% of its profits by 2030. Recent figures showed JLP reduced its losses, with sales rising 2% year-on-year. However, the company acknowledged a more extended turnaround period due to inflation.

In spite of opposition John Lewis keeps focusing on real estate

What: The second location of the new generation department store, WOW, will open on Serrano Street in Madrid by the end of the year, aligning with the Christmas season.

Why it is important: The Serrano Street location will cater to different target audiences, enhance the brand appeal, and attract both local clientele and foreign tourists.

This new store, located in a former El Corte Inglés building at 52 C. de Serrano, will emphasize luxury fashion. The Serrano store aims to attract a predominantly Madrid-based clientele due to its location in the luxury-centric Salamanca neighbourhood, while the Gran Vía store expects a majority of foreign tourists. The Serrano location will feature 340 brands, including premium international names like Nanushka, ByFar, Coperni, and Bluemarine and will allow brands to rent and personalise their own spaces.

WOW will open its doors on Madrid’s Calle de Serrano at the end of the year 

What: Inside Retail analysis of the key success factors at Central Retail.

Why it is important: Due to the intense competition there, Thailand has become a playground for experiential retail innovation.

Central Retail, a major Thai conglomerate, inaugurated its second eat-shop-play lifestyle center in the Chalong district of Phuket on October 6th. This follows the opening of their first Robinson lifestyle center in Thalang, Phuket, a year prior. The new Chalong mall boasts 17,000sqm of leasable area, with an 8,000sqm Robinson department store as its anchor. Central Retail has launched 28 such lifestyle centers across Thailand, hosting 4,700 tenants and receiving 120 million customer visits yearly.

Although located in tourist hotspots, these centers primarily cater to Thais. They fill a niche in areas that don't necessarily draw primary tourism but have enough consumer demand for a sophisticated shopping experience. The design is sleek, functional, and compact, accommodating a variety of merchandise, food, and leisure options.

Each center is modified slightly for local preferences. For instance, the Chalong center is themed as a “carnival village,” reflecting Phuket’s tourist culture. These centers follow a formulaic design: a ground floor with a Robinson department store, fashion brands from Asia, a mixed merchandise zone, and a Tops supermarket. They also feature Moshi Moshi, a popular Thai chain offering diverse lifestyle products. The upper floor transitions to hard goods, food, and entertainment with brands like Major Cineplex, Banana, Jaymart, Power Buy, Office Mate, B2S, and a food court.

Central Retail's potential influence in Vietnam is anticipated through their growing Go! mall chain. Central Retail ranks as one of Thailand's largest retail conglomerates, with sales being led by its fashion segment, recording a 22% growth year on year.

Eat, Shop, Play at Central Retail malls

What:  Marks & Spencer has announced Mother as its new creative agency for its UK clothing business.

Why it is important: The aim of the partnership is to evolve M&S and drive style perceptions by improving the visual aesthetic of communications and incorporating customer-centric thinking into marketing.

The partnership will replace the former deal of House 337 as M&S's creative agency. Mother will collaborate with the retailer's in-house creative team on certain projects.

M&S names Mother as its new creative agency for clothing

What: Mango continues its digital transformation by incorporating the 'Lisa' conversational generative AI platform.

Why it is important: This platform aims to streamline processes from fashion collection development to post-sales service.

'Lisa' utilizes a conversational interface similar to Chat GPT and leverages various models, including private ones tailored for Mango and open-source models. The integration of 'Lisa' aligns with Mango's previous adoption of machine learning platforms such as 'Inspire', 'Gaudí', and 'Iris'.

Mango launches 'Lisa', a conversational generative AI platform

What: Private labels are growing in US groceries to the expense of international brands.

Why it is important: Private labels are not only all about price point, but also retailer’s brand expression.

Casey's General Stores, a Midwest-based convenience chain, has observed a shift in customer preferences from well-known brands like Frito-Lay to its cheaper store-brand options due to inflation and other economic pressures. Over the past year, the sale of Casey's in-house chips has risen, reaching 25% of all chip sales this summer. The CEO of Casey's, noted that as inflation increases, customers are more willing to try less expensive alternatives, especially if they are displayed alongside pricier brands.

This trend is reflected nationwide. Large food companies, which dominated market share during the pandemic, are now competing with growing private-label brands. The share of grocery dollars spent on private-label foods and beverages has increased from 18.7% pre-pandemic to 20.6%. Other research indicates that private labels are securing significant market shares in categories like canned vegetables, cheese, and coffee.

Economic pressures, including resumed payments on federal student loans, rising credit card and mortgage rates, and the end of increased food-stamp payouts, are pushing customers towards more economical choices. A study by McKinsey revealed that two-thirds of consumers were opting for cheaper grocery items in July, a trend especially pronounced among households earning under USD 100,000 annually.

Big brands have begun to react by offering sale prices on certain products. Still, the expansion of private-label goods signifies a larger shift in the grocery landscape, with competition intensifying due to mergers like that of Kroger and Albertsons and the US entry of discount chains like Aldi. The improvement in the quality of store-brand products and the positive reviews on social media platforms are driving their popularity.

Retailers, such as Aldi and Wegmans, are emphasizing the quality of their private-label offerings while also aiming to cater to a broad range of customers, from budget shoppers to gourmet enthusiasts. They are also looking to offer unique products not available from national brands.

In summary, rising costs and economic challenges are pushing consumers towards more affordable grocery alternatives. This has led to a surge in the popularity and market share of private-label products, prompting retailers to expand their in-house offerings and compelling established brands to reevaluate their pricing strategies.

In the US, rising prices make the fortune of food private labels

What: Unibail-Rodamco-Westfield has announced its plan to reduce carbon emissions by 90% by 2050.

Why it is important: Unibail-Rodamco-Westfield is the first retail real estate company in Europe to receive net-zero certification from the Science-based Targets Initiative and wants to apply its reduction plan to the entire group.

The company aims to achieve carbon neutrality on its direct emissions (Scope 1 and 2) by 2030 through a 90% reduction based on 2015 levels. Unibail-Rodamco-Westfield plans to compensate for the remaining 10% of emissions. The goal is to reduce overall emissions, including those from clients and retailers in its centres, by 50% by 2030 and 90% by 2050.

To achieve its sustainability goals, the company plans to enhance energy efficiency, implement renaturation projects, promote water saving, and reduce waste. It will increase renewable energy production through solar panels and aims to produce 30% of on-site consumption through renewable sources by 2030.

The company plans to invest 28 million euros annually for the next seven years, including funds dedicated to solar energy production and the installation of electric vehicle charging stations, and it intends to support environmental initiatives by investing in the Climate Fund for Nature and making contributions to WWF.

Unibail-Rodamco-Westfield outlines carbon neutrality plan

What: The Printemps group and the French Fashion Institute (IFM) have partnered to support young fashion entrepreneurs in France.

Why it is important: Printemps and IFM aim to promote wider access to fashion industry jobs.

They will offer new scholarship schemes to enhance fashion knowledge and entrepreneurship in the country. The scholarships will be based on financial need and merit and will cover tuition fees for a professional training course in fashion at IFM. The course focuses on fashion designing, machinist-fitting, and model-making.

In addition to the scholarships, five brands at the IFM incubator will receive financial support for the development of innovative products and services in the creative industries. The brands selected include Mama Série Originale, Ako, Askiita, Noué, and The Wedding Explorer.

Printemps group teams up with IFM

What: Luis Bernardo Silva has been appointed as the new corporate people manager at Cencosud in the Latin American region, following the departure of Eulogio Guzmán.

Why it is important: Silva brings over 20 years of experience in human resource management, leading teams and driving cultural transformation in multinational companies.

He holds a degree in economics from Pontificia Universidad Javeriana and has specialized in finance at Universidad del Rosario, both in Colombia. Additionally, Silva has a master's degree in human resources from the London School of Economics and an executive MBA from the University of Quebec in Montreal.

Cencosud launches corporate people manager in the region 

What: Siam Piwat is collaborating with 7 regional players, mostly malls, to extend the benefits of its loyalty program.

Why it is important: The IADS calls for clear and concrete collaboration between players in the world. This is a perfect example of regional integration.

Siam Piwat Group has joined forces with seven global retail titans to extend its 'Global Privilege Partnership' program, providing international shoppers with privileges previously exclusive to its VIZ loyalty Thai customers. The partnership includes retail giants like Parco (Japan), Taipei 101 (Taiwan), Times Square (Hong Kong), Ion Orchard (Singapore), Pavilion Kuala Lumpur (Malaysia), Plaza Indonesia, and Fosun (China).

Siam Piwat, a major player in Bangkok's shopping scene, is also in discussions with South Korea’s Hyundai Department Store for further collaboration. They've additionally partnered with Alipay, Klook, and Trip.com Group to enhance shopping experiences, especially for Chinese tourists.

The overarching strategy, "Collaborate to Win," aims to enrich the shopping experience for both local and international visitors, with a particular focus on Gen Y and Gen Z demographics. VIZ members can now avail themselves of exclusive benefits globally.

Support for the initiative is strong among international stakeholders, with many emphasizing mutual benefits, service elevation, and tourism support.

Furthermore, Siam Piwat's OneSiam SuperApp, introduced in 2021, has shown significant growth. The app focuses on enhancing the shopping experience, providing members early access to promotions, and offering a plethora of luxury brands.

Asian retail players unite around Siam Piwat’s loyalty program

What: Selfridges Retail reported a significant increase in revenue and operating profit for the fiscal year ending in January.

Why it is important: The company’s annual report gives an insight into how it was able to achieve its improved financial performance despite the pandemic and supply chain disruptions due to Brexit.

Revenue rose by 29% to GBP 843.7 million, while operating profit reached GBP 38.9 million, an improvement from the previous year's GBP 38.1 million operating loss. Sales were strong in the physical stores, particularly at the flagship store on London's Oxford Street and the Exchange Square branch in Manchester. However, the company still reported a loss before tax of GBP 37.9 million, better than the previous year's loss of GBP 121.5 million.

The loss is partially attributed to the application of accounting standard IFRS 16 'Leases'.

Selfridges faced challenges due to the pandemic's impact, including the Omicron variant and international Covid restrictions. Despite these challenges, Selfridges' new owners continue to drive the retailer's vision of reinventing retail and focusing on sustainability. The full impact of the new ownership on the company's accounts will likely be seen next year.

Selfridges has filed its January 2023 year end results 

What: UPS has acquired Happy Returns, a reverse logistics start-up, from PayPal.

Why it is important: The acquisition enables UPS to provide cost-effective box-free return solutions to online retailers, addressing the increasing demand for efficient reverse logistics services.

Happy Returns helps online retailers by providing box-free return solutions to customers. It will now integrate its services with UPS, including the use of UPS stores as drop-off locations. UPS has previously invested in returns management platforms such as Optoro. The deal is expected to close in the final quarter of the year.

UPS acquires Happy Returns 

What: Decathlon has introduced a buyback service in all of its UK stores as part of its sustainability efforts.

Why it is important: This initiative is part of Decathlon's broader sustainability push, which includes a rental service rolled out earlier this year.

Customers can return unwanted products to the retailer's shops and receive store credit in return. Decathlon will refurbish and resell the returned products, starting with its own-brand bicycles and expanding to other categories in the future. The scheme has already been successful in Europe, with 251,000 products bought back and resold. Decathlon aims to refurbish 15,000 bikes per year in the UK by 2025. The retailer has 1,500 trained staff members to support circular services such as rentals and buybacks.

Decathlon launches buyback service across stores nationwide