What: Allbirds has not only released the first net-zero shoe, but the toolkit to do the same.

Why it is important: Private labels leaders should take notice, as well as Sustainability ones who should not only update their suppliers policies but also be ready for a customer mindset’s shift.

Allbirds has unveiled the design of its zero-carbon shoe, "M0.0NSHOT", at the Global Fashion Summit in Copenhagen. The shoe, primarily made from carbon-negative regenerative wool and methane-capture bioplastic, achieves a carbon footprint of 0.0 kilograms CO2e without the use of carbon offsets.

Along with the shoe's reveal, Allbirds has also released an online toolkit, or "Recipe B0.0K", which provides detailed information about the shoe's creation process to help other businesses make their own sustainable products. The commercial launch of the shoe is planned for Spring 2024.

DTC brand Allbirds launched a zero-carbon sneaker 

What: The largest market in the world (for now) is changing its nature.

Why it is important: Is it the advent of private labels for Chinese department stores just like in the rest of the world?

In 2023, China's retail market is expected to grow by over 9% CAGR by 2026, with domestic brands significantly contributing to this growth.

E-commerce brand Wudashu attributes this to the changing behaviour of Chinese consumers who seek personalised and trendy products. Retailers, in response, are developing domestic brands with suppliers to meet this demand, benefiting from reduced marketing costs and competitive products.

Despite the overcapacity issue, suppliers are now aligning with suitable retailers to ensure a healthier retail sector. Livestream shopping, a retail channel that originated in China, is also contributing to the growth, becoming a USD 512bn market.

What is behind the surge in China’s domestic retail brands? 

What: Westfield gives an overview of the financial performance and tenant sales of the first half of the year.

Why it is important: The report gives an insight to the company’s financial health and the retail industry.

The company reported that the adjusted recurring earnings per share (AREPS) rose 6.6% to EUR 5.28 in H1 which was driven by the strong operational performance in retail and offices.

The like-for-like net rental income was up 8.2% at EUR 1.152 billion with its shopping centres making up the bulk of it at EUR 1.059 million. Tenant sales rose 9.2% YOY in H1.

Bankruptcies increased in H1 to 211 stores, due to government support and rent relief provided during the Covid period coming to an end with more than a quarter of stores affected being in France.

The group signed 1,180 leases with the proportion of long-term deals signed increasing and vacancies for shopping centres decreasing.

Westfield owner says tenant sales still rising in H1 

What: Shopify consolidates its position of DYI website enabler, through easy to add software bricks, and now, content creation.

Why it is important: E-commerce website owners and operators will have an easier access to content and design creation, which might help the emergence of new designs and approaches to selling online.

Shopify has launched a free application called "Collabs Network" for merchants to connect with content creators and influencers to build sales and customer acquisition.

This expansion of the Shopify Collabs app, launched in 2022, allows creators to partner directly with Shopify merchants, obtain an affiliate link, and promote products without the need for individual partnerships often managed by middlemen or agencies. Creators can search and categorize products, identify brands favored by their followers, and earn high commissions on sales.

This comes in response to a booming creator economy, estimated to be worth over USD 100 billion. Merchants maintain control over who promotes their products and benefit from reduced customer acquisition costs.

Shopify launches a tool helping content creators 

What: Hammerson announces H1 financial figures.

Why it is important: Hammerson maintains its operational activities and is on track for its cost reduction and disposal targets.

Hammerson’s revenues rose 8% despite having reported a net loss of the GBP 1.2 million in the last 6 months.

The company's performance in terms of footfall and like-for-like sales have remained strong, showing a promising 4% year-on-year increase. Additionally, leasing deals concluded in this period have contributed to a growth in headline rent, which reached GBP 18.3 million, marking a 13% rise.

The group portfolio value has fallen to GBP 4.7 billion from GBP 5.1 billion last year, but its values remained broadly stable.

Malls giant Hammerson reports “strong” first half

What: Generative AI in the beauty industry

Why it is important: Incorporating AI in the beauty industry can simplify the shopping process for customers as well as give businesses clear information on what customers are looking for and their shopping habits.

Search queries are a major part of online activity, with potentially half of them going unanswered. Generative AI can help facilitate the shopping process by connecting consumers with brands, providing personalized recommendations, and helping brands stand out in saturated markets such as the beauty industry.

For example, the company, Haute AI, provides tailored product recommendations based on images submitted by its clients on its SkinGPT tool. Another example would be a person going into a chat with AI and requesting a skincare routine and leading the search with a picture of their skin or a product that they would like an alternative to.

The full implementation of AI requires education on how to understand the value of information that the tool can provide for businesses in content creation and standing out with a unique identity.

AI can also lessen the barrier to entry for aspiring entrepreneurs as there is readily available information on how to start a business and AI can assist in sorting them and applying them.

How generative AI will shape the face of the beauty industry

What: The luxury multi-brand retailer has announced the launch of a partnership with the luxury hospitality group on a series of retail pop-ups and activations.

Why it is important: The Webster is expanding its physical footprint to go where its clients go and meet the needs of their lifestyles.

The Webster and Rosewood Hotels share a vision of inspiring guests to discover personal retail experiences.

The retailer showcases a significant curation of products, focusing on providing a breadth of menswear that isn’t currently available at its permanent location and a highly tailored section of women’s ready-to-wear, footwear, and bags.

The Webster has also collaborated with a California-based brand, Nahmias, to create nine-piece capsule collection to celebrate the launch of The Rosewood partnership.

The partnership series will kick off at the end of July in California and continue throughout different Rosewood Hotels across the US with the partnership continuing in Paris at Hotel de Crillon.

The Webster announces exclusive pop-up partnership with Rosewood Hotels

What: Macy’s reveals its new private brand, a collection of women’s apparel and accessories called “On 34th.”

Why it is important: Macy's aims to increase the percentage of private brands in its portfolio and has done extensive market research to release On 34th to appeal to its target market.

The new collection offers classic wardrobe staples designed for modern life. This paired with its wide size range, the store is revamping its private brands to be more customer-centric, modern, and inclusive. It is aiming to get its private brands back to above 20% of its volume.

Some of the On 34th collection styles are online already on the Macy’s website but the official launch happens on August 17th. Macy’s stores will sell the new collection then, and the On 34th shoes will launch in the spring of 2024.

Macy’s unveils its new private brand 

What: Members of the creditors’ committee came to a unanimous vote in front of the Düsseldorf district court regarding P&C’s restructuring plan.

Why it is important: Peek & Cloppenburg can continue with its restructuring course as it gains the support of the creditors.

The insolvency plan will be formally submitted to the court and will be voted on by creditors by the end of August.

The creditors’ meeting also unanimously confirmed the self-administration and the court appointed administrator.

The plan provides for extensive job security and a location guarantee for the Peek & Cloppenburg Group in Germany.

P&C: Creditors support restructuring plan

What: Luxury hotel chain Aman is developing even further their cosmetics line, sold both in their premises but also in prime retail locations.

Why it is important: It is all about branding: the differentiation between industries is increasingly blurring. This news is exactly the opposite echo to Selfridges having plans to open an hotel.

Luxury hotel group Aman is expanding its lifestyle product line, Aman Essentials, which began in 2018 with Aman Skincare. According to Aman Essentials CEO Kristina Romanova, this venture was sparked by customer feedback about their experiences with Aman amenities. The positive response and subsequent sales led the company to view Aman Essentials as a standalone business.

The brand now encompasses home fragrances, fine fragrances, ready-to-wear clothing, supplements, skincare, yoga accessories, and other lifestyle goods, ranging in price from $65 to $4,460. Aman Essentials is also expanding its retail distribution, branching out from selling exclusively at Aman properties to third-party retailers around the globe.

The company has been opening concessions at Harrods, Beautyaholic in Rome, LuisaViaRoma, Violet Grey in the U.S., and Neiman Marcus. This retail expansion is attracting a new customer base and broadening the brand's exposure, particularly to younger consumers.

While the majority of sales still come from on-site boutiques, the direct-to-consumer business is growing. Aman Essentials reported nearly 200% year-over-year growth in 2022 and is on target for 170% year-over-year growth in 2023.

Future products in the pipeline include a kidswear collection and skincare additions, always reflecting aspects of the Aman lifestyle. Aman is also expanding their offering in popular categories like yoga accessories and fine fragrances, following their customers' preferences.

Hospitality group Aman goes retail 

What: Tech has evolved and now offers new possibilities for in-store equipment.

Why it is important:  There are many options available, meaning that tough choices in terms of capital and resource allocation need to be done.

In the post-pandemic era, consumers expect brick-and-mortar stores to provide the conveniences found in e-commerce, shifting the focus of in-store technology from customer engagement features to infrastructure solutions.

Brands like Kate Spade and Rebecca Minkoff previously introduced interactive displays and digital mirrors for customer engagement, while current technology aims to solve problems like inventory management through RFID, as seen with Farfetch.

Retailers like Showfields aim to enhance the shopping experience by providing more information and discounts through an app. Reformation digitises the try-on process with touchscreen monitors.

However, implementing these technologies is not without challenges, as they need to integrate with existing systems and provide measurable value to retailers.

How brands can choose the right in-store technology 

What: Frasers Group forecasted to be the top retailer in the UK by 2026

Why it is important: The top retailers of the UK will change by 2026 due to strategic decisions made by companies.

The jump from its current third place to the number one spot will be a result of its five-year compound annual growth rate (CAGR) of 9.2% from its acquisitions such as Missguided and I Saw it First. The expansion of its Flannels chain and its growing sports presence are accompanying the causes for the growth.

The top 5 are predicted as Frasers, Next, Marks & Spencer, JD Sports, and Primark.

Frasers Group to be the top UK fashion retailer within a few years

What: H&M doubles down on a marketplace approach which differentiates it from Zara.

Why this is important: Beware of brands turning into retailers to attract more traffic.

Swedish fashion conglomerate H&M is planning to add more third-party brands to its stores and online platforms in an effort to attract a larger customer base.

This strategy, initiated last year, is in response to competition from retailers like Shein and Zalando. The company has already incorporated 70 external brands into its platform across six markets, a move that resulted in better-than-expected profits last quarter.

This approach differentiates H&M from Zara, which typically collaborates with other brands only for exclusive collections.

H&M adds more third-party brands online and instore to attract shoppers 

What: Affluent Chinese shoppers have continued to drive luxury sales growth despite a weakening economic outlook.

Why it is important: Even during economic slowdowns, wealthy consumers are willing to pay a premium for unique and differentiated products and prioritize the in-store experience and personalized service that offline channels offer.

Same-store sales growth for luxury brands at China’s MixC shopping malls grew by 9% for the first five months of the year according to data from Bernstein. The top luxury and fashion retail operator in China aims to grow luxury sales at its 86 shopping malls by 28.5% in 2023.

Bernstein also noted that premium sportswear brands such as Lululemon and Arc’teryx are doing well in comparison to mass market players as the Chinese middle class cuts back on discretionary goods.

Data from MixC showed that a resurgence in offline shopping helped premium cosmetic brands offset losses in online sales. The category saw a 14.6% decrease in sales on the country’s major e-commerce platforms but grew around 50% from January to May.

Bernstein: China’s offline luxury consumption surpasses growth expectations

What: Macy’s opens a new restaurant and reflects on the importance of the food and drink sector to the company

Why it is important: Food is an important part of Macy’s customer experience and has been a part of its business strategy for over 100 years.

Macy’s food and drink division dates to 1890 with the first tearoom in the Chicago department store to now having over 120 restaurants. The company’s ever-growing portfolio of restaurants includes a mix of proprietary concepts such as Seven on State, franchised and licensed concepts such as The Cheesecake Factory, as well as local concepts like the Liliha Bakery in Honolulu. There are plans to add new food locations in various Macy’s locations as it is shown to contribute value to the customer experience.

In addition to increasing customer time spent at the store, there is a mutualistic relationship for both the food operators and the department stores. There is increased store visibility, promotions, and offers that are exclusive to Macy’s, and the restaurants receive business support such as build-out cost forecasting and advertising support.

Why retail giant Macy’s prioritizes its restaurant program 

What: While the number of luxury shops around the world has remained fairly stable, the shape and size of stores has changed dramatically.

Why it is important: Luxury stores have to be transformed into unique and meaningful places, linked to the brand’s roots to make a space that is memorable and becomes a destination for customers.

Luxury retail is concentrated in 25 major cities with Tokyo, Seoul, Paris, Hong Kong, and New York City being at the top of the list.

New stores such as Dior’s flagship on Avenue Montaigne are designed to be destinations and retain customers as long as possible. The store aims to attract everyone and caters to a visitor who will only buy a coffee to a customer who will treat themselves to a suite.

While these new points of sale require a hefty investment, the megastores are proving to be highly profitable with high margins and sales reaching hundreds of millions of euros. These stores have gone beyond retail space and become attractions.

Additionally, initiatives such as pop-ups, VIP lounges, fashion shows, travelling exhibitions and more, have enabled the luxury industry to increase its sales per square meter.

As the race for gigantism continues, it becomes more difficult for smaller labels to compete with the larger luxury companies. The luxury market is increasingly oligopolistic as Louis Vuitton, Dior, Chanel, and Hermés are in a league of their own.

Luxury: ever-larger shops for ever-stronger brands

What: LVMH boasts impressive financials from H1 and lavishly invests billions in prime store locations.

Why it is important: LVMH manages major cash outflows and investment decisions to strengthen its position as the global leader in luxury goods.

The net profit of LVMH in the first half of the year jumped 30% to EUR 8.48 billion as the strong demand for luxury products In Europe and Asia fuelled growth in most segments. Recurring operations profit totalled EUR 11.57 billion which represented a 13% year-over-year.

Financial results of the company were in line with analysts’ forecasts such as Q2 group sales amounting to EUR 21.20 billion and the 21% increase in Fashion and Leather Goods’ organic sales. However, sales of wines and spirits fell during Q2 due to the worsening US economic environment, and luxury stocks fell after Richemont’s surprise report of declined revenue in the Americas.

The company reported an operative investments figure of EUR 3.6 billion from the first half of the year- EUR 1.6 billion of which was allocated to commercial real estate, including the major purchase on the Avenue des Champs-Elysées in Paris. The CFO labelled their purchases as opportunistic and an investment in obtaining key locations in Paris, London, NYC’s Fifth Avenue, and Rodeo Drive in Los Angeles.

There are plans to continue to invest in Tiffany & Co’s Fifth Avenue flagship store, the Landmark, which is understood to have cost hundreds of millions of dollars to refurbish. LVMH aims to redo most of the network of stores at Tiffany to boost the global image of the brand.

LVMH is confident and optimistic about the second half of the year despite dwindling U.S. sales due to the increasing sales in Asia and the excellent results of H1.

LVMH’s net profit rose 30 % over the first half of the year 

What: Shopify announces multiple updates to its platform with AI at its core.

Why it is important: The updates will support merchants in their productivity as well as upgrade their experience on the Shopify ecosystem.

The Summer 23 updates include Sidekick, Shopify Magic, and Marketplace Connect.

The Sidekick tool allows entrepreneurs to engage in conversation with the AI which will in turn optimise workflow and facilitate business decisions. Shopify Magic also aims to enhance the merchant experience by introducing personalised AI-generated FAQ responses, content creation, and optimised emails. Marketplace Connect streamlines the management of multiple sales channels for merchants by enabling them to sell directly on major retailer sites such as Amazon and eBay.

Shopify launches first AI-powered commerce assistance 

What: According to a survey conducted by Boston Consulting Group, the Middle East is expected to double in size by 2030 and grow to EUR 30 billion to EUR 35 billion.

Why it is important: The Middle East is becoming a new frontier of luxury with Saudi Arabia and the UAE becoming lucrative markets for Western luxury labels. The majority of labels looking to enter the Saudi market are partnering with the Chalhoub Group.

The Middle Eastern luxury goods market, currently estimated at EUR 15 billion, is expected to double in size by 2030, growing up to EUR 35 billion.

Reports from Altagamma and McKinsey confirm these expectations, with an estimation that the Middle East is the market with the highest growth potential.

Factors contributing to this growth include the region's increasing appeal due to geopolitical tensions, the influx of wealthy individuals from China and Russia, and Saudi Arabia's efforts to modernise and diversify its economy through luxury tourism

Saudi Arabia is especially expected to be a lucrative market, as it has been developing commercial spaces dedicated to luxury and is one of the few countries with virgin territory. The country is expected to EUR 6 billion in terms of luxury goods sales by the end of the decade.

Western luxury labels who are looking to enter the market have been joining forces with Chaloub Group, one of the Middle East’s leading distributors of luxury brands.

Middle East luxury market to double in size by 2030, says BCG

What: The secondhand market in Asia is growing as the younger generation shows an interest in pre-owned fashion.

Why it is important: The global secondhand market is set to grow to USD 248 billion by next year and USD 351 billion by 2037 with demand from the Asia-Pacific region fuelling the growth.

The Asian luxury retail market is fragmented due to differences in language, culture, and regulation in varied countries. Though, the homogenous societies across Asia prefer shopping for the same brands as they find comfort in conformity and emulate each other’s style.

Kream is a South Korean retailer of trendy sneaker styles with 5.3 million monthly active users that pulled USD 1.4 billion worth of gross merchandise volume last year. 50% of the GMV comes from sneakers, but the company hopes to broaden their market to appeal to women.

The customer-to-customer resale is a growing trend in each country, and Kream sets itself apart from other C2C platforms by offering a storage service. This allows sellers to store their inventories in Kream’s warehouse and facilitates a better experience for the buyer by speeding up the sale and authentication process.

The company cemented its reputation as a reliable platform after Kream halted sales of Essentials T-shirts when a buyer attempted to sell a counterfeit and noticed more questionable products on their site. Kream reimbursed clients who had bought fakes at double the cost of their original purchase.

There is clear potential growth for Asia’s resale market and as it moves online, platforms will adapt to streamline the process and provide a high service level.

How big can luxury resale get in Asia?

What: Liberty Retail announces a drop in profits for the 2022/2023 fiscal year despite a rise in revenues.

Why it is important: The overlook of the financial performance of Liberty Retail and the company’s positive outlook on the poor profit margins give an insight into the current conditions of the company’s health.

The annual report, with a year-end in January, stated a 41.5% jump in revenue from GBP 82 million to GBP 116.17 million yet a 99% drop in operating profit from GBP 2.48 million to GBP 22,000. According to the company, this is an exceptional situation that is a balancing out of the GBP 11.5 million impairment that it endured in the previous year.  Liberty Retail was optimistic about the company’s overall performance as it had been successful during the Christmas period despite inflation rates and had made increased online sales contributions towards its EBITDA.

Liberty Retail sales rise but EBITDA lags pre-Covid profits

What: The global eyewear group has completed the acquisition of its own subsidiary in Mexico.

Why it is important: Global brands and suppliers regain total control of their operations by squeezing local partners, putting department stores at the risk of losing leveraged negotiating power.

The Italian group has acquired the remaining 49% of its shares in its former joint venture in Mexico as part of its greater corporate strategy to enhance its presence in key markets.

Marcolin Mexico will continue to support its local stakeholders from its own subsidiary in Mexico City while further improving and quickening responses to clients’ needs.

Marcolin acquires Mexico operations

What: Walmart is offering customers on certain government aid programs 50% off Walmart+ subscription

Why it is important: Walmart+ assisted membership will provide recipients with benefits and opportunities that were previously inaccessible to them.

Walmart+ Assist will be available to customers that are enrolled in programs such as SNAP, Medicaid, and the National School Lunch Program. The benefits of the program include free shipping, grocery delivery, gas discounts, and video streaming on Paramount.

The discounted membership is valid for one year at a price of USD 6.47 monthly or USD 49 annually with the option for annual renewal.

Walmart rolls out half-price Walmart+ memberships for people on government assistance 

What: The Chilean retailer has launched a digital wallet that unifies payments in one place and offers exclusive benefits to users. using a QR code.

Why it is important: The tool enhances Cencosud’s customer experience and has allowed it to reach a new milestone in Chile.

In addition to unifying payments, the digital wallet offers exclusive promotions, doubles the accumulation of Cencosud points, and offers payment by phone using a QR code.

Customers can also use all types of cards and pay from a personal digital account, add a balance in the app, review payment details, and review returns made online and in the store.

CencoPay is expected to be implemented in other businesses and countries, gradually incorporating new features.

Cencosud launches CencoPay in Chile