What: Mango ventured into multi-brand e-commerce in 2021 by adding Intimissimi and later Rituals to its offerings. However, they have now chosen to discontinue selling these brands.

Why it is important: The company has decided to focus on their own sales channel and improve customer experiences.

The marketplace was initially launched in six markets, including Spain, the Netherlands, Germany, the United Kingdom, Portugal, and France.

Mango considers its online channel to be essential, accounting for 36% of its business in the last fiscal year. In the first half of 2023, Mango's e-commerce operations grew by 10%, with the mobile application witnessing the most significant increase in revenue

Mango shuts down marketplace after two years of operation

What: American department stores are striving to save themselves by refining internal and consumer-facing strategies.

Why it is important: The department stores in the US need to adapt their business models to remain relevant and innovate over time.

Department stores are considering integrating physical and digital teams (like Neiman Marcus) or separating them entirely (like Saks). Personalisation is a key focus, with stores tailoring all channels to specific consumers to provide a personalized shopping experience.

The current US wholesale system has challenges due to high inventories, discounting, and competition from e-commerce players. The main hurdle faced by department stores is "social and commercial irrelevance" in a post-internet world, according to Doug Stephens, founder of consultancy Retail Prophet.

Department stores are rethinking team structures to improve efficiency, with Neiman Marcus adopting an integrated model and Saks opting for a complete split between offline and online businesses. Buying strategies need to strike a balance between tried-and-true products and newness and innovation to drive customer frequency and repeat visits. Bloomingdale's is focusing on new brands and products to compete with alternative entertainment and travel options. "Advanced contemporary" clothing is performing well, with brands like Veronica Beard, Farm Rio, and Self-Portrait gaining popularity. Buyers are also focusing on tried-and-true products to manage inventories and mitigate risks.

Can American department stores save themselves?

What: De Bijenkorf goes through a new restructuring plan.

Why is that important: The store is gradually abandoning any ambition to go beyond the Dutch borders.

Dutch luxury store chain, De Bijenkorf, is eliminating 37 managerial roles across its seven outlets due to rising operational costs affecting its profitability. This follows previous job cuts at its headquarters and a reduction in its international operations. Despite a turnover of €524 million, the company reported a net loss of €10.8 million. The retailer aims to improve efficiency and customer experience through these measures and has also limited its e-commerce activities to Dutch-speaking regions.

De Bijenkorf restructures again

What: The challenges faced by retailers in managing online returns and the rising costs associated with them.

Why it is important: Effective management of online returns is crucial for retailers to reduce costs, protect profit margins, and enhance the shopping experience, ultimately leading to higher sales.

The introduction of free returns by Amazon in 2005 set new customer expectations and put pressure on brands and retailers to offer the same service. However, the costs of processing returns, including shipping and sorting, have continued to rise, especially during the COVID-19 pandemic. To offset these costs, some companies have started charging customers for returns.

Effective returns policies go beyond charging fees and should focus on attracting customers who make informed purchasing decisions to minimize returns. Start-ups are emerging to help brands implement strategies such as offering credits towards new items instead of full refunds and facilitating at-home pick-ups.

Brands like Monos, Ana Luisa, Mytheresa, and Revolve, which have implemented different approaches to returns management. Overall, managing returns efficiently while improving the shopping experience is crucial for retailers to protect their profit margins and generate higher sales.

Fashion’s new playbook for online returns

What: André Maeder has been announced as the new CEO of Selfridges Group after its acquisition last year. Maeder will assume the role in spring 2023, following his departure as Chief Executive and Managing Director of KaDeWe Group on November 1.

Why it is important: The appointment of André Maeder could contribute to the growth and success of Selfridges and its associated European retail businesses as he has a successful track record in transforming luxury department stores.

Selfridges Group was acquired in August 2022 by a consortium led by Central Group and Signa Group. The deal was reported to be worth GBP 4 billion and included Selfridges' European retail businesses in the UK, Ireland, and the Netherlands.

Maeder will be based in London and will oversee the management and coordination of Selfridges, De Bijenkorf, and Brown Thomas Arnotts. Since joining KaDeWe Group in 2014, Maeder played an instrumental role in transforming the group's luxury department stores, including KaDeWe, Alsterhaus, and Oberpollinger.

Michael Peterseim will replace Maeder as CEO and Chair of KaDeWe Group, while Janina Schüßler and Julia Lehmann have been promoted to director positions within the company.

Selfridges Group appoints KaDeWe Group chief executive as new CEO

What: Target has introduced an immersive toy experience on its website, allowing online shoppers to explore a virtual room of toys.

Why it is important: Target is focusing on its budget-conscious consumers while creating an innovative way for customers to shop online this holiday season.

The retailer is collaborating with FAO Schwarz to offer nearly 140 items co-designed with them, with most priced below USD 25. They are also promoting affordable toys from popular brands like Barbie, Play-Doh, Pokémon, Paw Patrol, Marvel, and Lego. Target aims to make discovery easier for at-home shoppers through this 360-degree feature. They have expanded their product assortment priced at USD 3, USD 5, USD 10, and USD 15, emphasizing affordability.

In addition to FAO Schwarz, Target has partnered with Disney to launch a limited-edition collection of Disney toys in celebration of the company's 100th anniversary, with over half of the collection priced below USD 25.

Target launches immersive toy experience

What: In spite of varying headlines, US consumption remains very high.

Why it is important: While spending remains high, it’s on experiences: dining, concerts, travels.

Despite rising interest rates, high inflation, reduced pandemic savings, and a cooling labor market, household spending remains strong. In August, Americans spent 5.8% more than the previous year, surpassing the inflation rate of less than 4%. The experience economy thrived, with companies like Delta Air Lines and Ticketmaster reporting significant growth.

Some financial experts attribute this behavior to consumers prioritizing short-term experiences over long-term goals due to the uncertainties brought about by the pandemic and other factors, like a challenging housing market.

Many are choosing to spend on experiences now, fearing they might not have the opportunity later.

Concerns about climate change are also motivating some to visit places before potential environmental changes.

However, there are concerns about whether consumers can sustain this level of spending, as factors like labor strikes, student loan repayments, and rising gas prices might force cutbacks. Recent surveys indicate a surge in consumer spending, which is unexpected given the prevailing economic conditions.

Many people are reevaluating financial norms, choosing to enjoy their money in the present rather than saving exclusively for the future.

American customers keep spending

What: La Samaritaine Rivoli is repositioning its product offerings to appeal to a younger clientele.

Why it is important: The store is opting for a more dynamic and youthful approach after it suffered from the Covid crisis, particularly impacting its Asian clientele who couldn't travel as planned, as well as the political strife and labour disputes.

The department store is debuting its “Sneakers Lounge”, located on the first floor of the Rivoli building, which offers a curated selection of brands such as New Balance, Dr Martens, Veja, and Vans, along with socks and shoe maintenance products. With a modern and minimalist design, the store aims to provide urban and trendy footwear options. On the ground floor, two pop-ups are present, featuring K-Way and Rains. K-Way showcases its R&D collection, while Rains presents a surrealistic design concept with stones climbing the walls to create unexpected shelving for bags and accessories. The pop-up stores will run from October 3rd to 31st.

Levi's, a renowned denim brand, has also been invited to set up a special corner on the first floor. This Levi's space offers a premium denim experience with customized merchandising, exclusive collections, and collaborations. The store provides an immersive fitting room experience and iconic Levi's decor to celebrate the brand's 150th anniversary.

La Samaritaine Rivoli reviews its product positioning 

What: Galeria is reportedly selling Inno, its Belgian unit (which is profitable)

Why it is important: Thought COVID consequences were over? Galleria has to sell a profitable family jewel to repay the German state.

Galeria, a German retail company, intends to sell its Belgian department store chain, Inno, which includes 16 stores and an online shop. Although the sale is planned, no concrete negotiations have started, and operations remain unchanged for Inno's employees and customers. Inno employs 1,100 people. The company's CEO, Armin Devender, highlighted Inno's strong financial health, noting a gross operating profit of over EUR 10 million in the 2021-2022 fiscal year. After facing financial challenges in 2018-2019, Inno successfully rebounded, increasing its revenue by 25% to EUR 285 million in September of the previous year. The proceeds from the anticipated sale, estimated between EUR 50-100 million, will be used by Galeria to repay German state aid, as reported by Frankfurter Allgemeine Zeitung.

Inno is reported to be on sale

What: The sales of Lotte, Shilla, and Shinsegae duty-free stores in Korea have experienced a significant decline due to changing shopping patterns among Chinese tourists.

Why it is important: It is important to understand the decline in sales of Lotte, Shilla, and Shinsegae duty-free stores due to changing shopping patterns among Chinese tourists to adapt and strategize accordingly in the tourism and retail sectors.

Data and analysts indicate that fewer tourists are shopping at traditional duty-free stores, opting instead for local retail channels and regular retail stores. While the number of customers for Korea's duty-free stores increased by 307% from the previous year, combined sales of major duty-free stores dropped by 28%. Foreign tourists' spending at traditional duty-free shopping channels also decreased by 37%.

Market analysts suggest that duty-free stores have failed to appeal to foreign tourists who prefer experiencing the latest products and trends in Korean culture. The decline of Chinese resellers is another reason for the fall in sales. Lotte Duty Free reported a sales decline of 38.6% in the first half, while Shilla Duty Free Shop and Shinsegae Duty Free saw sales declines of 33.6% and 37.2%, respectively.

The stock prices of duty-free operators also experienced a sharp decline. However, there is a possibility of a duty-free stock rebound in the future, as the Chinese government recently lifted a ban on group tours to Korea.

Lotte, Shilla, Shinsegae hit by drastic sales fall despite Chinese tourists' return

What: Frasers Group partnered with Thrive Learning to create and launch an online learning platform for its employees.

Why it is important: The online learning platform will boost employee development in Frasers’ 35,000 employees which will in turn foster growth within the company.

This partnership aims to provide a variety of learning opportunities, including compliance training, onboarding for new employees, product training, internal communication, and social learning. The platform is designed to offer personalized recommendations to employees and facilitate peer-to-peer learning. Additionally, Frasers Group anticipates that the platform will enable the identification of new skills and maximize overall growth within the company.

Frasers to revolutionise employee learning using AI 

What: Travel retail operator Heinemann is back at Dusseldorf airport after 10 years.

Why it is important: They aim to use the airport as a base to test their most innovative stores and promote local and regional brands.

After a 10-year hiatus, travel retailer Gebr. Heinemann has reopened its stores at Düsseldorf Airport, coinciding with the resurgence of the MICE (meetings, incentives, conventions, and exhibitions) business in the city. The collaboration aims to capitalize on increasing international arrivals due to the growth of trade events. The relaunched stores emphasize regional specialities and sustainability and cater to younger demographics by introducing trending and social media-favored brands.

Heinemann is back at Dusseldorf Airport after 10 years

What: Saks CEO, Marc Metrick discusses Saks’ Q2 perfomance and future expectations.

Why it is important: The CEO provides a comprehensive insight to Saks’ Q2 performance and how the company was able to increase net profit even though there was a decline in sales.

In the second quarter of 2023, Saks experienced an 11% decline in top-line revenue. However, the company achieved higher profitability by focusing on improving margin and inventory management, as well as implementing staff cutbacks in their store and website.

Saks.com saw a two-year stacked growth of 24% and a 114 % increase compared to Q2 2019; the gross merchandising value (GMV) for saks.com still fell by 11% compared to Q2 2022. Similarly, GMV for Saks Fifth Avenue stores dropped by 11% during the same period. The top-selling categories at the stores were men's and women's contemporary sportswear, and the top-performing markets were New York and Florida.

During the quarter, Saks successfully executed a strategy of separating its store fleet and e-commerce business. Positive performance was observed in comparable sales compared to the second half of the previous year. Spending among core luxury consumers is starting to return, with 64% of those earning USD 200,000 or more planning to spend the same or more on luxury in the next three months. This indicates an increase in luxury spending among higher-income shoppers. The company holds positive expectations for the upcoming holiday season.

Saks CEO on Q2: Profits up despite double-digit top-line drop

What: Walmart goes frontal with Amazon and offers a subscription service for everyday products.

Why it is important: This emphasizes even more if needed the fact that department stores are pushed out of the everyday product for everybody positioning, and need to define their positioning and target with great precision.

Walmart has introduced a new subscription service allowing customers to receive regular shipments of items like food, paper products, and pet supplies. This move competes with Amazon's Subscribe & Save program, which has been operational since 2007 and offers up to 15% discounts on bulk subscriptions. Unlike Amazon, Walmart offers products at its "Every Day Low Prices." The service was developed in response to observing customers frequently repurchasing the same items. The subscription covers a wide range of products, with pet-related items being particularly popular. In line with this, Walmart has also opened its first Pet Services centre in Dallas, Georgia. Other retailers, like Chewy, also have similar subscription offerings for pet products.

Walmart debuts subscription services

What: Stockmann commences a strategic assessment; considers changing the Group’s name to Lindex Group and investigates strategic alternatives for the Department Stores business.

Why it is important: This strategy reflects Stockmann’s focus on enhancing shareholder value and optimising its business strategy, particularly by emphasizing the significant contribution of Lindex to the overall performance of the company.

Lindex, which generated over two-thirds of Stockmann Group's revenues in 2022, will remain unaffected by the possible name change. The Department Stores business will evaluate options such as increased independence, ownership changes, strategic partnerships, or continuation under the current structure. The strategic assessment will not impact the daily operations or iconic brand of Stockmann Department Stores.

Any decision regarding the name change would be subject to approval at Stockmann's general meeting, with the assessment expected to be completed by 2024.

Stockmann considers changing its name and alternatives for the Department Stores business

What: Skims is celebrating its debut at the KaDeWe department store in Berlin.

Why it is important: This will be the brand’s first physical location in Germany, as it aims to open its own stores across Europe.

Germany is the fastest-growing market in the EU for Skims. The company plans to open its own in London, Milan, and Paris over the next 18 months and form valuable partnerships with luxury retailers like KaDeWe.

KaDeWe launches Skims debut into the German market

What: The Saks Luxury Pulse quarterly survey revealed that 58% of respondents plan to spend an equal amount of more on luxury goods in the August through October period.

Why it is important: The luxury customer confidence in spending has increased from 53% to 58% when Saks last conducted the survey which is an indicator of growth in future sales for the luxury good market.

Individuals with household incomes of USD 200,000 or more are showing a more positive outlook on luxury spending. Saks has stated that its core customers typically have an average household income of around USD 200,000.

Despite concerns about the overall economy, 68% of luxury consumers remain optimistic about their personal financial situation. This sentiment extends to the overall economy as well, with 45% expressing optimism, which marks a 5 percentage point improvement compared to the previous survey.

Recent price increases in the luxury sector have made consumers more price-conscious and focused on obtaining value for their money. While they are still willing to pay for special items, they are seeking value in their purchases.

Saks, in particular, has noticed a positive inflection point in purchase intent across the luxury consumer continuum. This suggests that core luxury consumers are beginning to recover and increase their willingness to make purchases. Saks is focused on building relationships with the full range of luxury shoppers.

Saks survey sees luxury shoppers bouncing back 

What: John Lewis has launched a turnaround plan in 2020 and has gone through financial woes since then. Profitability is not yet in sight.

Why it is important: Reviewing the structure of the “Partnership” (very specific and unique to John Lewis) has always proved to be difficult, and might have to be done again soon.

John Lewis, a prominent UK department store chain and owner of supermarket Waitrose, anticipates it will need an additional two years to finalize its turnaround strategy, pushing its completion from 2025/26 to 2027/28. This comes as the company reported another loss for the first half of the year, attributing the delay to high inflation and increased staff expenses. Despite the delay, the group has shown signs of recovery: it posted a 14% reduced loss compared to the same period last year and experienced a 2% increase in total group sales. The company remains unsure about providing its well-known staff bonus this year and is focusing its investments on customer service, new products, and overall pay. The company's net debt slightly increased, but it expects to enhance its debt ratio by year's end.

John Lewis has 2-years delay on the path to profitability

What: Saks launched its fall 2023 campaign to showcase different brands and styles as well as feature diverse talents.

Why it is important: The fall campaign highlights latest trends for consumers as well as expands the company’s advertising strategy which in turn promotes the Saks’ fashion offering and enhances customer engagement.

The fall 2023 campaign coverage can be found on The Edit, Saks' online editorial hub, as well as on their social media, and print ads will be published in publications such as Vogue, Harper’s Bazaar, The New York Times, and The New York Times Style Magazine.

To enhance the shopping experience for its customers, Saks has introduced Curated Shops on Saks.com. These curated shops offer different categories like 'Shop by Sign' and 'Revenge Dressing,' aimed at helping customers find tailored pieces. Other categories such as 'Understated Luxury,' 'Fall Wardrobe Refresh,' 'Back to School,' and 'It's a Date' provide specific product recommendations.

Saks is also expanding its advertising strategy by partnering with podcasts in the pop culture genre.

Saks launches 360-degree campaign

What: Amazon has developed a new version of its cashierless shopping technology for clothing retailers, called Just Walk Out.

Why it is important: The implementation expands the potential applications of the system beyond convenience and grocery stores, allowing for more efficient tracking of apparel items.

The technology uses radio frequency identification (RFID) tags to track apparel items. This is a departure from Amazon's previous system, which relied on cameras and shelf sensors. The RFID tags are affixed to individual items and monitored by fixed readers inside the store.

While Amazon has successfully deployed Just Walk Out in convenience stores and grocery outlets, it's unclear how many apparel retailers will adopt the RFID version due to concerns about relying on a competitor for in-store technology.

Amazon has conducted pilot tests of its RFID-enabled technology at fan shops in Seattle sports arenas.

Amazon develops version of cashierless tech for clothing stores

What: Department stores are struggling in Korea.

Why it is important: The competition from online players is rising and makes the most of customers’ disaffection for non-essential goods.

In August, South Korea's retail sales increased by 3.3% year over year, driven by convenience stores, super super market (SSM) operators, and online cosmetics and food retailers. The Ministry of Trade, Industry, and Energy (MOTIE) found a 7.6% rise in convenience store sales due to their closeness, small purchase shopping, and more outdoor activities during the summer holidays. SSMs saw a 3.2% growth, mainly from fresh/prepared and processed foods, despite a dip in daily necessities. Online sales surged by 8.1%, with cosmetics and food sales growing by 14.1% and 13.0%, respectively. In contrast, brick and mortar hypermarkets experienced an 8.4% decline, with significant drops in home/living and food sales. Department store sales also fell by 4.9%, and there was a notable reduction in sales for fashion/clothing (2%) and sports (5.6%), reflecting a shift in consumer preferences away from non-essentials due to diminished consumer sentiment.

South Korean sales grew in August thanks to convenience stores and online

What: 85% of On Running brand is now made of recycled polyester, with the goal of reaching 100% by 2024.

Why it is important: They are also on the way of addressing 55% of their Scope 3 emissions, while keeping on growing.

Swiss athletic brand On is making strides in sustainability by increasing its use of recycled polyester in products to 85% last year, with the goal of reaching 100% recycled polyester and polyamide by 2024. On has also reduced its CO2eq emissions per unit of value added by 12% compared to 2019. The brand aims to achieve a 46% absolute reduction in its Scope 1 and Scope 2 emissions and a 55% economic intensity reduction in Scope 3 emissions by 2030. Although it's slightly behind on its Scope 3 emissions target, On is making significant progress by using more recycled materials in its products. Additionally, 30% of materials used by On in 2022 were fossil-free, and 64% of materials used in apparel and accessories were fossil-free.

The brand also operates sustainability initiatives such as a subscription-based circularity program and a re-commerce program. Despite its sustainability efforts, On reported record quarterly growth in net sales.

On running shoes is taking leaps towards sustainability

What: Olivier Bron has been made official by the Macy’s Group as the new general manager of Bloomingdale's stores starting in November.

Why it is important: Bron has experience with Galeries Lafayette Group, Central, and Robinson department stores and will now report to Macy's CEO, Tony Spring.

Olivier Bron has been appointed as the new general manager of Bloomingdale's stores by the Macy's Group. He will assume his role in November and will report to Tony Spring, who has been the president and CEO of Macy's since March. Previously, Bron served as the director of operations for the Galeries Lafayette group and later moved to Thailand to manage the Central and Robinson department stores.

Tony Spring praised Bron in a statement, highlighting his charismatic leadership, understanding of Bloomingdale's culture, and deep knowledge of the luxury market. Bron will oversee a network of 34 Bloomingdale's department stores and 20 Outlets in the U.S., with the brand also having a presence in Kuwait and Dubai

Olivier Bron expressed his honor at being named the next CEO of Bloomingdale's and showed admiration for the brand's 150-year history and its premium product assortment. He also expressed eagerness to continue the momentum of the team, including new store formats and ongoing digital expansion.

For the first half of its 2023 fiscal year ending in July, Macy's group saw its revenue decline from $11.4 billion the previous year to $10.5 billion this year, with Macy's sales dropping by 8.9% and Bloomingdale's by 3.3%.

Bloomingdale's entrusted to Olivier Bron

What: Reliance Retail Ventures is in advanced negotiations with global investors to raise approximately USD 2.5 billion.

Why it is important: The investment will boost India's appeal for foreign investors amidst uncertainties in China.

This funding is expected to be finalized by the end of September and is part of Reliance Retail's overall target of raising USD 3.5 billion. USD 1 billion of the target from Qatar Investment Authority (QIA) and was announced last month.

The company has been strengthening its omnichannel capabilities and leveraging its vast network of physical stores and digital platforms. With Reliance Retail's strong market presence and the influx of investment, India's retail sector is expected to witness further innovation, job creation, and technology-driven advancements.

Reliance Retail has also been actively expanding its consumer business by acquiring smaller grocery and non-food brands. This strategic expansion has contributed to the company's impressive financial performance. In the financial year ending March 2023, Reliance Retail reported a consolidated net profit of INR 91.81 billion (USD1.11 billion).

Indian Billionaire Ambani’s Reliance Retail in Talks to Raise USD 2.5 Billion