What: How Central World transformed a problem (Isetan leaving) into an opportunity

Why it is important: Interestingly, they have chosen to keep a Japanese flavour to keep the special positioning of the place.

Central World, a prominent mall in downtown Bangkok, faced the challenge of its anchor tenant, Isetan, a seven-level Japanese department store, going out of business in 2020. This was triggered by border closures, lockdowns, and trading hour restrictions due to the pandemic, coinciding with the end of Isetan's 30-year lease. Rather than viewing this as a loss, the mall owners, Central Pattana, saw it as an opportunity to reimagine the space.

Three years later, the mall has transformed the space into an "urban lifestyle destination". Instead of another department store, Central Pattana restructured the space to have mini-anchors on each level. The Japanese theme remains evident, particularly on the third floor with its "Japan Avenue", which features a food court, Nippon Market, and a small restaurant. The ground floor hosts American dining chains, Shake Shack and the upcoming Cheesecake Factory. The second floor boasts The Rink, a large ice rink, surrounded by kid-centered activities and stores. The fifth floor introduces Nitori, a Japanese home furnishing store marking its debut in Thailand, while the sixth floor houses a Kinokuniya bookstore. The top floor has an international food court.

The transformation of Central World underscores the evolving nature of malls, which are diversifying their offerings in response to challenges like e-commerce and the decline of traditional department stores. Central World's efforts show how a diverse range of shopping, dining, and entertainment options can be introduced while retaining elements cherished by patrons, like the Japanese theme, ensuring a vibrant and dynamic shopping experience.

Exploring Central World’s Isetan remake

What: Barneys is coming back with a branded line sold at Forever 21.

Why it is important: Time will tell if a department store IP can stand the test of commercial profitability without being a department store.

Barneys New York, once an iconic luxury department store, has transitioned into a brand for licensed goods after filing for bankruptcy in 2019 and its subsequent sale in 2020. On September 7, fast-fashion retailer Forever 21 will launch a Barneys New York collection featuring a 32-piece lineup that includes suiting blazers, trousers, denim jackets, and outerwear. This collection, reflecting the timeless Barneys style, will be available online and in approximately 200 Forever 21 stores during New York Fashion Week. Both Barneys New York and Forever 21 are owned by Authentic Brands Group. While Barneys had a unique place in the hearts of fashion aficionados, its commercial allure wasn't enough to sustain its physical stores. Despite this, the Barneys New York label still holds significant appeal for many customers.

Barneys New York launches collab with Forever 21

What: Falabella announced its 2023 H1 results.

Why it is important: The financial performance of Falabella can give insight into the retail industry, particularly in the Latin American region.

The company ended the first half of the year with a loss of CLP 5,153 million (16.9% drop). Their H1 turnover was CLP 5,435,960 million which is 9.6% lower than that of the same period last year. The worst performing division was the home stores in Chile with a decrease in turnover by 23%, department stores in Chile down 18%, and those in Colombia down by 30.9%.

Falabella decreased its business in all of its markets, including declines of 4.2% in Peru, 16.6% in Colombia, 21.4% in Argentina, and 16.2% in Brazil. The company currently operates with a network of 526 establishments distributed between Chile, Peru, Colombia, Argentina, Brazil, Uruguay and Mexico.

Falabella reduces its income and enters losses in the first semester

What: In an unlikely move, Shopify is now collaborating with Amazon to “simplify merchants’ lives".

Why it is important: With the loyalty program patiently built by Amazon for the past 15 years, they now havz a strategic asset able to facilitate even the most unlikely alliances such as Shopify, a rival.

Amazon and Shopify are partnering to offer the Buy with Prime feature to Shopify merchants, allowing them to provide Prime members with free delivery and easy returns through Amazon's fulfillment network. This integration simplifies operations for merchants using both platforms, as they can sync orders, promotions, catalog listings, and taxes within the Shopify system. Initially available on an invite-only basis, the service will be accessible to all U.S.-based Shopify sellers using Amazon's fulfillment network by the end of September. This collaboration represents a change in the relationship between the two companies, as Shopify initially warned its merchants against adding Buy with Prime to their storefronts due to terms of service and security concerns.

Shopify teams up with Amazon and now offers the Buy with Prime option

What: Ikea tried to go away from the “maze” store design as the new units are smaller than the historical big box stores.

Why it is important: customers asked to have the full experience, including the serendipity of finding the unexpected, and want the maze back.

IKEA's traditional maze-like store layout, which guides shoppers through various sections, has proven to be popular and effective. Despite attempts to create more open and flexible layouts to cater to casual shoppers or officegoers, customers have expressed a preference for the guided shopping experience. They appreciate the path through the store, as it reminds them of products they may have forgotten they needed. This layout has been a key element of IKEA's success, creating a sense of discovery and encouraging shoppers to explore the entire store. IKEA continues to experiment with different store formats to adapt to changing consumer preferences, including smaller stores and dedicated plan-and-order locations.

Ikea has to recomplexify their stores by popular demand

What: The article highlights the broken system of fashion manufacturing and the challenges it poses.

Why it is important: It is important to address the broken system of fashion manufacturing and overcome its challenges in order to create a more sustainable and efficient industry that benefits all stakeholders involved.

One example is Ahmed Zaidi's family's apparel factory in Pakistan, which experienced order cancellations from brands, resulting in difficulties paying suppliers. The breakdown between brands and their selling channels further exacerbates the problem. Mainstream stores carry excessive amounts of inventory, leading to messy displays and poor consumer experiences. This overproduction and inventory problem are driven by pressure from fashion investors and result in discounting cycles that compromise brand values.

French luxury conglomerates and small independent retailers have found success by adopting different approaches. The broken wholesale fashion system affects brands, manufacturers, and retailers alike. Manufacturers face canceled orders and payment difficulties, while mainstream stores struggle with excess inventory. Investment capital can influence brand values and sustainability goals. Nonetheless, some brands are finding success by controlling the entire production and distribution chain or through extreme cooperation. Small independent retailers thrive by carefully curating their inventory and maintaining strong partnerships with the brands they sell.

Many smaller labels view wholesale as a marketing tool to introduce their brand to new shoppers, generate cash flow, and support production. During the pandemic, some designers, such as Hoffman, shifted their sales strategy from wholesale to direct-to-consumer. However, they still aim to bring on more wholesale accounts to achieve a balanced sales percentage.

In the wholesale system, smaller independent brands face challenges and costs such as using costly order technology and marketing support fees. To improve the wholesale cycle's efficiency and profitability, researchers are exploring the use of artificial intelligence and fabric/materials arbitrage.

The US wholesale model is hurting everyone

What: Westminster Council has approved GBP 90 million for the first stage of a revamp of London's Oxford Street.

Why it is important: The investment into the street will revitalise the shopping area and create a more pleasant experience for visitors as well as boost sales for the businesses.

The plans include reducing traffic and increasing visitor space, with the aim of creating a "world class offer and experience" for shoppers. The stretch from Tottenham Court Road to Marble Arch will receive wider pavements, redesigned crossings, and more greenery to improve the overall environment. The important junctions, such as Oxford Circus, will be redesigned to be more pedestrian-friendly. While it falls short of the traffic-free shopping ideal, it will undoubtedly improve the area. Oxford Street has faced challenges, including the rise of American candy stores and the closure of flagship stores like Topshop and Debenhams. The news will please retail leaders who have advocated for more investment in Oxford Street, especially as neighbouring streets like Bond and Regent have thrived.

Oxford Street gets go-ahead for GBP 90m upgrade

What: The KaDeWe group has launched a new five-part campaign called “ A Story of Desires”.

Why it is important: The campaign launched showcases top models, luxury fashion brands, and aims to inspire customers to embrace their personal luxury moments during the autumn season.

The campaign was released on September 4th in Hamburg’s Alsterhaus and Munich’s Oberpollinger as well as KaDeWe in Berlin on the 6th.

Renowned photographer Hugo Comte created 21 campaign motifs featuring the new fashion collections available at the luxury department stores. The campaign showcases top models Penelope Ternes, Abigayl Anderson, and Céline Vivod styled in exquisite pieces from brands like Alaïa, Mach & Mach, Khaite, Coperni, and Loewe. Additionally, the campaign highlights menswear brands like Acne Studios, Craig Green, Marni, and Tom Ford.

The colours featured are autumn tones to reflected the changing seasons along with whimsical details such as neon elements and floating objects, and faux fur.

The campaign is paired with the the KaDeWe in-house magazine which can be viewed online as is available as a print version in stores.

KaDeWe Group launches “Story of Desires”

What: Kroger has been involved in a legal action claiming it has contributed to the US opioid crisis.

Why it is important: The more involved department stores will be in health and wellness, the more they will ahve to be cautious with the implication of their actions.

Kroger, a major grocery chain, has agreed to a $1.2 billion settlement with states, local governments, and Native American tribes over claims that its retail pharmacies contributed to the opioid crisis by inadequately monitoring opioid prescriptions. The settlement will be paid over 11 years, starting in December, with an additional $177 million for legal fees to be paid over six years. Although Kroger did not admit any wrongdoing, it joins other pharmacy chains like Walgreens, CVS Health, and Walmart, who have made similar settlements totaling about $13 billion. The funds from these settlements are being used to support opioid abuse victims and purchase opioid overdose reversal drugs. Despite the settlement, Kroger intends to proceed with its merger with Albertsons and plans to divest over 400 stores to address antitrust regulator concerns.

Kroger pays USD 1.2bn to settle opioid claims

What: Fraser sues Morgan Stanley for an allegedly unnecessary request made by the bank which led to subsequential losses.

Why it is important: Such legal battles are often not public, especially when they involve major retailers.

Frasers has approached a New York court, requesting Morgan Stanley CEO James Gorman to provide evidence for its UK lawsuit against the bank concerning a near $1bn margin call related to Hugo Boss trades. Frasers claims Morgan Stanley acted in bad faith when urging them to close derivative positions in Hugo Boss. Frasers contends the bank wrongly imposed a $995mn margin call in 2021, resulting in significant losses and additional costs. The company alleges the bank's actions were arbitrary and in breach of contract. Morgan Stanley counters that their decision was based on risk assessment and standard practices. The situation followed the 2021 Archegos Capital Management collapse, after which Morgan Stanley appeared to misjudge Frasers' characteristics with those of Archegos. Frasers insists Gorman reveal his knowledge about the bank's actions, referencing a previous CNBC interview as potential evidence.

Frasers in legal fight with Morgan Stanley

What: Walmart has announced the opening of its first Pet Services Center as part of its expansion into pet care.

Why it is important: It allows them to expand their offerings and cater to the needs of pet owners, providing convenient access to a range of pet care services.

The centre, located in Dallas, Georgia,  will offer a range of services, including vaccines, wellness exams, minor medical services, grooming, and a self-service dog wash. Veterinary and grooming services will be provided by PetIQ. This move responds to growing pet ownership in the U.S., with the pet industry expected to hit $277 billion in spending by 2030. This pilot centre is co-located with Walmart's first Health centre, centralizing health care needs for families and pets. Walmart also plans to introduce an online Pet Pharmacy experience on its website and mobile app. The new pet centre will have a separate entrance and is being piloted before potential expansion to other stores. The company aims to extend the Pet Services model to more locations based on the pilot's insights.

Walmart leans into pet care with first Pet Services Center 

What: Macy's, Inc. has joined the US Cotton Trust Protocol to enhance its sustainability efforts in sourcing cotton.

Why it is important: Macy's participation in the Trust Protocol will enable them to better understand the supply chain of their private brand products. It reinforces their dedication to sustainable practices, advances their progress towards environmental goals, and fosters greater visibility and accountability in their cotton supply chain.

The company's commitment to sustainability is reflected in its social purpose platform, Mission Every One, which aims to create a more equitable and sustainable future. In 2022, Macy's released its private brand cotton policy, pledging to source 100% preferred materials by 2030. This commitment includes sourcing US Cotton and Protocol Cotton, which is grown and harvested by Trust Protocol growers. Macy's will use the Protocol Consumption Management Solution to ensure transparency and accountability in the cotton supply chain. Through this membership, Macy's will trace its supply chain and demonstrate progress towards its environmental targets.

Macy's Vice President of Sustainability, Keelin Evans, emphasized that their work is focused on caring for people and managing their environmental impact. They are already making significant progress, and they expect that over half of their cotton products within the private brand managed by Macy's sourcing team will be sustainably sourced by the end of 2023.

Macy’s joins US Cotton Trust Protocol to bolster sustainability 

What: Walmart recently hosted its first-ever Walmart Marketplace Seller Summit in Las Vegas where the company announced to extend its Marketplace to Chile.

Why it is important: The expansion provides additional growth opportunities for third-party sellers, allowing them to reach new markets and increase their sales potential.

The event featured prominent Walmart leaders, including CEO Doug McMillon and Chief eCommerce Officer Tom Ward, who emphasized the potential of Walmart Marketplace to connect businesses with new markets and customer segments.

Walmart aims to enhance fulfillment services by scaling local pickup and delivery, expanding options for big and bulky items, and launching digital brand shops and shelves on its website. They also revealed that Walmart Fulfillment Services will waive peak season storage fees for sellers who inbound by October 1.

To further support sellers, Walmart has introduced features such as Inventory Transfer Services and Walmart Restored for improved inventory availability and refurbished goods options.

Walmart aims to grow its third-party marketplace at first seller summit

What: John Lewis has launched its Christmas shops in stores across the UK.

Why it is important: The early launch of the Christmas shops in stores nationwide meets the growing demand for festive products and offers a range of experiences and personalized options for customers.

The company has seen a surge in demand for festive products since the launch of its online shop last month. Sales of Christmas decorations have increased by 25% compared to last year, and wreath sales have soared by 107%. The store is offering a variety of experiences and personalization options this year, including a pick and mix bauble station and Christmas markets featuring handmade products from local businesses. Santa's Grotto and "Tea with Santa" events will also be available in select stores. The store expects supersized decorations and Christmas lights to be popular this year.

John Lewis unveils new Christmas shops

What: Walmart expands their fashion retail and transforms the shopping experience.

Why it is important: Emphasizing its fashion business is crucial for Walmart to bolster its business model, as well as increase its market presence in higher-margin categories.

Walmart is making progress in its pursuit of becoming a fashion destination. Led by Denise Incandela, the executive vice president of Walmart U.S.' apparel division and private brands, the company is updating its assortment, enhancing the online shopping experience, and effectively communicating these changes to shoppers. With plans to expand its new store model to 300 locations after a successful test run with 30 converted stores, Walmart aims to leverage its large customer base of approximately 140 million people who visit its 4,000 stores or website each week.

Apparel is viewed as a crucial part of Walmart's overall strategy to strengthen its business model and succeed in higher-margin categories. The company recognizes the shifting expectations of customers, particularly younger consumers who prioritize value over shopping at higher-end stores.Walmart aims to position itself as a leader in the fashion industry by catering to these changing preferences and capitalizing on opportunities for growth.

Walmart: A fashion giant awakens 

What: Lotte Mart, a Korean supermarket chain, is now planning to have foreign-friendly zones in its stores.

Why it is important: the purpose is to appeal to tourists, which is no longer the single prerogative of local luxury and fashion boutiques as well as department stores.

Lotte Mart, a prominent supermarket chain in South Korea, is introducing special "Must-Haves of Korea: K-Food" shopping zones tailored for foreign visitors. Initiated at its Seoul Station branch, which saw about 30% foreign footfall this year, the 20-meter-long zone is set to expand to eight other outlets near tourist hotspots by year's end. This includes locations at Gimpo International Airport, Lotte World Tower, and the Jeju island. This initiative responds to the increasing number of foreign travelers, particularly since the endemic and the revival of Chinese group tours. The Seoul Station branch also offers luggage storage, currency exchange machines, and has restarted its thrice-weekly international shipping service since May.

Lotte Mart is now preparing for the return of tourists

What: Shein and Klarna have partnered up again  for an immersive tour around the UK called “In Pink We Trust”.

Why it is important: The tour and partnership show how vital experiences are in physical shopping since the comeback of in-person retail post-pandemic.

The aim of the tour is to provide consumers with an immersive experience of the Shein brand, showcasing new collections of knitwear, denim, partywear, and accessories in a walk-in wardrobe setting. The bus will also feature Shein's home decor and appliances ranges. Visitors will have the opportunity to enjoy pampering services and win prizes, and there will be fashion sessions and music provided by DJs at each location. The first 100 visitors at each location will receive a goodie bag.

Destinations on the tour will include London E1 on September 20th, Birmingham Bullring on September 22nd, and Manchester Square on September 23rd.

Shein and Klarna link up for UK immersive tour 

What: Central launches a new business format to address B2C.

Why it is important: In parallel to its digital ventures, aiming at the same goals, Central does not lose sight on the fundamentals of business: being physically present where it is needed.

Thailand's Central Retail Corporation (CRC) is launching a membership-based wholesale venture, 'Go Wholesale', investing US$570 million over five years to develop 43 locations. The initiative, targeting sustainable growth for small businesses, will debut a 7,000sqm branch on Srinakarin Road, featuring over 20,000 products, mainly fresh foods from local and global sources. CRC emphasizes sustainability by supporting local farmers and providing jobs for marginalized groups. Last year, CRC had revenues of $6.7 billion, with a recent 5.6% quarterly revenue increase to $1.6 billion.

Central Retail Corp unveils expansion plan for Go Wholesale

What: Fenwick launched its first-ever advertising campaign, “Quiet No More”.

Why it is important: The launch of the ad shows the evolution of the store from being a discreet brand to one that is actively advertising and aiming to reach a younger audience.

The campaign features captivating images captured by the up-and-coming photography duo Pablo Estévez and Javier Belloso, as well as Ana Paganini.

To complement the campaign, Fenwick has organized a pop-up shop within their department store, where customers can purchase exclusive T-shirts. These limited-edition T-shirts carry empowering slogans such as "Quiet No More," "Unquiet Luxury," and "Wear Something With Volume.”

Fenwick had previously sold their Bond Street store and adjacent London properties last year and are now  focusing on investing in and developing their flagship store in Newcastle, signifying a shift in their strategic priorities.

Fenwick launches first-ever ad campaign 

What: Stockmann's Temepere department store has updated its lighting, replacing obsolete halogen lamps with 3D-printed LED spotlights manufactured from recycled material.

Why it is important: The adoption of 3D-printed LED spotlights made from recycled materials is important to boost a circular economy and minimise carbon footprint.

Stockmann's Tampere department store has recently replaced its old halogen lamps with 3D-printed LED spotlights made from recycled materials. This lighting renewal is expected to result in major savings in electricity consumption, reducing energy consumption by 668,000 kWh per year. The 3D-printed LED lights have a 75% lower carbon footprint compared to traditional metal lights and are made from 100% recycled materials such as old fishing nets and CDs. The department store aims to promote the circular economy by extending the life cycle of products and offering services like personalized fashion and repair for new and used clothes.

Stockmann’s Tampere sees major savings in electricity 

What: Sports salons Barry’s turn 25.

Why it is important: While they have a massive international footprint, they inked a partnership with Frasers a few years ago, showing a potential new direction for department stores eager to add wellness and health to their service offer to customers.

Barry’s, a boutique fitness brand, celebrates its 25th anniversary. Founded by Barry Jay in 1998, it now has 84 studios in 14 countries. Joey Gonzalez, who began his journey with Barry’s by attending a class in 2004, became CEO in 2015 after holding various roles within the company. Under Gonzalez's leadership, Barry’s underwent significant changes including a rebrand, global expansion, and navigating the challenges of a pandemic. The company is set to surpass its pre-pandemic revenue of $100 million this year. Emphasizing a welcoming fitness environment, Barry’s integrates lifestyle elements like apparel, recovery stations, and Fuel Bar - a health café. As part of its ongoing growth, Barry’s is considering global expansion, focusing on data-informed strategies and tailoring studio designs to local aesthetics.

Sports salons Barry’s turn 25

What: Until recently, Fred Segal has had only five stores, mostly in Southern California. New outposts are opening in California with an eye toward Japan and China. New York and Miami are also considered.

Why it is important: Expanding Fred Segal's retail presence through new store openings is important for the brand's growth and accessibility to customers in different regions.

First up is a 2,100 square-foot store in Marin County near San Francisco followed by a 2,600 square-foot store on a premier shopping avenue in Santa Monica, California.

More locations are in the works. Recently, Fred Segal closed a New York City pop-up store in SoHo neighbourhood. The retailer is now considering a larger permanent location as the city is their second best area for e-commerce.

On the international front, Fred Segal has had a store in Seoul for two years. It was done in partnership with Hanwha Group and is located at the Galleria Luxury Hall. While Japan and China are in the pipe, e-commerce and private labels are still the primary focus.

Fred Segal to expand stores in US and in Asia

What: Thailand is a highly competitive market which forces retailers either to focus on efficiency, or on international attractivity.

Why it is important: Siam Piwat plans to top up the Thai government effort in promoting tourism by investing $28m on their own.

Siam Piwat Co Ltd, a leading Thai real estate and retail developer, has revealed a four-pillar strategy aimed at reinforcing its leadership in global destination development and supporting Thailand's post-pandemic tourism rejuvenation.

Highlights:

• Notable Assets: Siam Piwat owns and operates globally recognized retail spots such as Siam Paragon, Siam Center, and Siam Discovery. They're also in a joint venture with IconSiam and Siam Premium Outlets Bangkok.

• Investment in Tourism: The company will allocate over 1 billion THB (US$28 million) in Q4 to assist the government's objective of achieving 30 million overseas visitors to Thailand. This investment is planned to double in the subsequent year.

• Strategic Pillars:

1. Shopping & Luxury Leadership: They will partner with luxury brands to launch 20 new shops in Q4, many marking their first appearance in Thailand. Major luxury brands at their malls are also set to expand their outlets.
2. MICE & Event Leadership: Collaborating with various sectors, Siam Piwat aims to make Thailand the top international MICE destination in Southeast Asia. Plans also include partnering with a renowned event organizer to establish a new convention center in Bangkok.
3. Promotion of Thai Art: With over 15 years of championing Thai artists, Siam Piwat is working to position Bangkok as the art hub of Southeast Asia. By 2026, they plan to open an international-standard River Museum at IconSiam to draw art aficionados globally.
4. Showcasing Thailand's Soft Power: Over the last decade, Siam Piwat has curated platforms like SookSiam to project Thailand's cultural richness. Their efforts include promoting the nation's food, film, fashion, and design and collaborating with government agencies to globally elevate Thailand's soft power.

• Performance: In the past eight months, the company's malls have experienced a 46% increase in visitors compared to last year, with an average expenditure of 8500 THB (US$238) per visitor.

• End Goal: CEO Chadatip Chutrakul emphasized the company's commitment to strengthening Thailand's tourism sector, which she believes will be pivotal in reviving the nation's economy.

In summary, Siam Piwat is proactively investing in strategies to support the Thai government's push to rejuvenate tourism, ensuring its position as a top global destination and fostering economic growth.

Siam Piwat plans to invest $28m to attract visitors to Thailand

What: Zalando launches an online magazine to generate content and relationship with its community.

Why it is important: This move a reminiscence of a basic marketing tactics from the early 00s when e-commerce websites seeked to be a mix between a magazine and a transactional platform.

Zalando is introducing "Stories," a digital magazine feature on its platform to enhance the shopping experience with content like trend insights, influencer collaborations, and brand narratives. Primarily short videos, these Stories can be accessed via a dedicated hub and across Zalando’s platforms. for them, this move is a step towards prioritizing inspiration in shopping. They're collaborating with Highsnobiety, acquired by Zalando last year, for content creation and strategy. The content, which includes segments like 'Cover Story' and 'Style Bible', will be updated weekly.

Zalando launches an online magazine