What: Lotte Shopping Co., will Lotte Shopping Westlake Hanoi, the largest shopping mall in Vietnam on September 22.

Why it is important: The mall is in Hanoi’s West Lake new urban area and aims to become a landmark in the city as well as a central business hub to stimulate the local economy.

The shopping mall is located across 354,000 square metres and accommodates 233 stores. The basement will have Lotte Mart, a grocery store, and Bottle Bunker, a wine speciality store.  In addition to the shopping complex, there will also be Lotte Hotel, Lotte World Aquarium Hanoi, and Lotte Cinema.

The pre-opening events for the mall will be on July 28th.

Lotte open’s Vietnam’s largest shopping mall in Hanoi

What: The social network is planning to enter e-commerce in the US.

Why it is important: This is not a marketplace approach, but a fully controlled retail one, which could put Tiktok on the map of retail and disrupt the fashion trade as we know it.

TikTok, the social media platform owned by Chinese company ByteDance, is reportedly planning to launch an online retail store on its U.S. app as early as next month. Unlike the current TikTok shop, which allows brands to sell products for a fee, the new initiative will involve TikTok handling inventory, warehousing, logistics, and customer service.

The company aims to take advantage of "social commerce" and leverage user data to refine its product offerings and shopping experience. However, the move also raises concerns about supply chain practices and environmental impact, drawing comparisons to Shein, a Chinese fast-fashion retailer accused of human rights violations and environmental harm.

Despite the potential benefits, the success of TikTok's e-commerce venture is far from guaranteed due to the complex and costly nature of setting up a supply chain and managing inventory.

Tiktok to open an online retail store in the US 

What:  A networking party, “Summer Night & Fashion Party”, hosted in the KaDeWe luxury department store along with German Vogue, and the Fashion Council Germany celebrated the talents of Berlin Fashion Week.

Why it is important: Berlin Fashion Week is dedicated to highlighting the growth in its fashion industry and is working along with the city of Berlin to showcase and connect industry talents in their passion for fashion. KaDeWe remains the meeting place for inspired individuals to come together and be inspired.

The collaborative evening of the “Summer Night & Fashion Party” during Berlin Fashion Week was hosted by KaDeWe in their luxury department store to bring together 550 guests from the fashion industry to network with one another. In part with the Fashion Council Germany and Vogue Germany, the event aimed to connect individuals, support the fashion industry, and give international visibility to BFW and its talents. The KaDeWe and Conde Nast joint event was highly successful in organizing this union of industry members as there were many esteemed guests in attendance.

 KaDeWe, FCG, and Vogue celebrate BFW networking party 

What: Olympic merchandise point-of-sale locations are opening in Paris and other French cities in anticipation of the 2024 Summer Olympics.

Why it is important: The Olympic Games organisers have set a sales target of EUR 2 billion in derivative products, so setting up stores in various convenient locations will help reach the goal.

The Paris 2024 stores have opened a new point of sale in the Carrousel de Louvre which will appeal to and attract millions of international shoppers that visit the museum. Other official store locations include the first one at the Forum des Halles in Paris and more planned around the country.

Shops will be set up in the Paris area, as well as Lyon, which will host the football matches, and Lille which will host the handball and basketball games.

The organising committee has entered a partnership with the property company URW, where the stores in the agreement will host meetings with athletes and sports activities. Eight total addresses are planned in its shopping centres.

Paris 2024 Olympics: the official stores are rolling out in Paris, then in Lyon and Lille

What: Selfridges opens a pop-up where customers can bring back unwanted garments and get credits for them.

Why it is important: The department store has pledged to achieve 40% of its turnover through the 4 R (resale, recycle, rent, reuse) within 2030. They need to find the right economic equation to make sure this is profitable.

Selfridges is partnering with circular fashion platform Loanhood to launch 'Swap Shop,' a concept allowing customers to exchange pre-owned clothing for other secondhand items.

The initiative, which will run from July 10 to 30, is part of Selfridges' broader sustainability effort, 'Worn Again,' promoting secondhand and circular shopping experiences. In addition, 'Thursday Lates' events will feature workshops, shopping, and entertainment, with all proceeds going to Oxfam.

Selfridges to host “swap shop” concept 

What: The brand has opened three pop-up bookstands in Shanghai, repurposing local coffee shops to sell books, including City Guides, Fashion Eye, and Travel Books.

Why it is important: This strategy appeals to the cultural consumer trend in China where the distinction between consumption and collecting is key. Even seemingly simple items like branded books or tote bags can become desirable collectors' items, contributing to the luxury experience beyond high-ticket products.

The bookstands' colors reflect the Beijing, Shanghai, and Chengdu editions of the Louis Vuitton City Guide. Customers who buy at least two books receive an eco-friendly tote bag, a move that has driven significant offline and online traffic. The hashtag “LV Bookstore” has accumulated over 168,800 views on the Chinese social media platform, Xiaohongshu.

Louis Vuitton has strategically maintained its brand exclusivity and community engagement by converting individual shops in popular Shanghai neighbourhoods into bookstores rather than partnering with a national coffee or tea chain.

Louis Vuitton opens pop-up bookstands in Shanghai

What: Tourism and a sustained local demand help Japanese department store to look up.

Why it is important: Department stores are a major distribution format in Japan, and their evolution is heavily scrutinised. We might witness some ’rightsizing’ again in the near future though.

Japan's department stores are leading the retail sales recovery in 2023, according to the Ministry of Economy, Trade and Industry (METI). Despite the declining importance of department stores in Japan's retail landscape over the past two decades, these stores have witnessed a 10.6% sales increase in the first five months of the year. Store productivity also rose by more than 12.9% compared to the same period a year ago.

The recovering tourism sector, with 2 million visitors per month (still below pre-Covid levels), is positively impacting retail sales, particularly department store retailers that rely on foreign high spenders. However, Chinese tourists, a significant portion of pre-Covid visitors, are still only at about 15% of their pre-Covid levels, indicating potential for further growth.

Major department stores like Takashimaya and J. Front Retailing have reported good sales growth, with a significant part of this growth attributed to international tourist arrivals. For instance, Takashimaya's June sales rose by 5.6% year-on-year and their operating revenue for the first quarter was 4.2% higher than a year ago. J. Front Retailing's sales grew by 15.2% in June and 16.4% in the first half of 2023.

Despite these promising numbers, the future of Japan's department stores remains uncertain. Their share of total retail business has been on a steady decline, accounting for only 3.6% in 2022, down from 7.0% in 2002. The sustainability of the current growth will be tested in 2024 when the effects of post-Covid normalisation wear off.

Department stores lead retail growth in Japan 

What: Sneaker resale platform, The Edit Ldn, is introducing a sneaker display in Harrods.

Why it is important: The exhibition will showcase rare and collectable sneakers as well as offer the visitors a chance to purchase them.

The exhibit, named the Sneaker Grails Exhibition, will display rare and exclusive sneakers from around the globe. The aim is to show the harmony between high fashion, streetwear, and sneaker culture.

The items will be available for purchase as collective art pieces with the rarest pair priced at GBP 60,000. The collection will include Nike Air Jordan 1 1985, Nike Air Jordan 4 Travis Scott Purple Friends & Family, Nike Air Yeezy 2 SP Red October; Nike Air Yeezy 2 NRG Solar Red, and the 1984 Air Ship.

Members of the Edit Ldn team will also be present to educate visitors on the items.

The Edit Ldn links with Harrods for sneaker exhibition 

What:  Tesco appoints a financier as its new chair.

Why it is important:  Is the finance world the new hunting ground for retail strategic hiring?

Gerry Murphy, the current chair of luxury brand Burberry and food group Tate & Lyle, is set to become the next chair of Tesco, replacing John Allan.

Allan stepped down amidst allegations of misconduct towards women. Murphy will join Tesco in September and will be tasked with navigating the supermarket through claims of profiteering during a cost of living crisis.

He will step down from Tate & Lyle to ensure he has the capacity to fulfil his role at Tesco. Byron Grote, Tesco's interim chair, called Murphy "the unanimous choice of the board" and praised his strong boardroom leadership and understanding of retail and consumer-focused businesses.

Tesco appoints City veteran as new chair 

What: AI is considered as critical for many businesses in order to remain competitive, but the journey can also be blurry.

Why it is important: Just like for any other tech in the past, many suppliers are harnessing it and developing their own propositions, sometimes without the right added value.

The emergence of generative artificial intelligence (AI) features, which respond to user prompts by generating images or text, has led to an oversaturation of AI co-pilot tools, causing confusion and potential governance risks for businesses. The proliferation of these AI co-pilots, or virtual assistants, is leading to difficulties in determining a single common interface for accomplishing tasks. In addition, privacy concerns arise when private data from a company interacts with the co-pilots and potentially enters public training models for generative AI tools.

Gartner noted that IT sellers are rushing to develop generative AI features for fear of falling behind, which might lead to privacy and security issues. They estimated that one-fifth of independent software vendors have moved into the generative AI space since the launch of ChatGPT around seven months ago.

Many businesses, however, are beginning to critically assess the new generative AI tools, differentiating between those genuinely useful and those merely capitalizing on the trend. Meanwhile, tech executives anticipate the market will eventually consolidate, leading to clearer winners in certain AI capabilities and simplifying the process for companies.

Companies are drowning into too much AI 

What: Klarna recently announced Klarna Spotlight, which provides an AI-powered personalized shopping feed on its app.

Why it is important: Retailers are increasingly implementing AI to enhance their customer experience and tailor product recommendations.

The functions of Klarna Spotlight include a personal shopping assistant that connects consumers with product advice experts and a resell functionality to sell pre-loved items on secondhand marketplaces with the help of prefilled listing choices and more.

65% of consumers said they want the shopping experience to become more personalised in the future, and AI-powered shopping feeds can help consumers find the most relevant products.

As technology advances, consumers are spending less time searching for goods and being matched with items they love, the products find them.

The AI retail market is expected to reach more than USD 34 billion by the end of 2030 and AI, AR, and robots are likely to dominate the physical and virtual retail experience in the future.

Klarna is looking toward the future with its AI-powered shopping tool

What: Lotte Duty Free, South Korea's largest duty-free operator, lost its spot in the airport in April.

Why it is important: While the loss of the airport spot is expected to have minimal impact on Lotte’s overall revenue, their withdrawal from Incheon airport after 22 years of operation is expected to have a major impact on the ranking of Korea's duty-free industry.

Shilla Duty Free and Shinsegae Duty Free have since launched larger-scale operations with a wider product range, with the latter planning to operate 29 stores across Terminals 1 and 2 by the end of next year. Hyundai Department Store Duty Free has also started operations, offering luxury brands including Tiffany, Celine, and Fendi.

Following its departure from Incheon Airport, Lotte Duty Free intends to concentrate on its downtown duty-free shops and online platform where they introduced a dedicated section for duty-free liquors.

Lotte Duty Free withdraws from Incheon airport

What: A Japanese airline explores new ways to save fuel and weight by proposing new services to customers.

Why it is important:  A world where purchasing will become just an option and not a need is appearing in between the lines with this initiative.

Japan Airlines (JAL) has launched a year-long experiment that offers visitors to Japan the chance to rent their clothes upon arrival.

The rental clothes, which are a mix of excess stock from retailers and second-hand items collected by a partner company, will be delivered to a visitor's hotel or Airbnb accommodation and collected at the end of the stay to be washed and recycled.

This trial scheme, known as "Any Wear, Anywhere", is designed to promote sustainable tourism by reducing luggage weight and, therefore, carbon dioxide emissions from flights. The scheme's launch coincides with a period of rapid growth in visitor numbers to Japan following the easing of pandemic-related travel restrictions.

JAL airlines offers tourists to rent their clothes at destination 

What: Harrods has announced the launch of its first private members’ club in Shanghai that is due to open by the end of the year.

Why it is important: The department store’s new venture is on par with the trend of retailers branching out into profitable luxury non-retail areas. The brand is expanding into mainland China due to significant market potential and the growing wealth of consumers.

Harrods plans open its very first private members club in Shanghai by the end of the year which will cater to the ultra-rich with membership prices starting at CNY 150,000. The new club, The Residence, is located on the second floor of the Cha House which also houses the Harrods Tea Room and Piano Bar.

The primary round of memberships will be very exclusive and be limited to 250 members to start. Members will be able to benefit from automatic access to Black Tier status with the Harrods Rewards Program, as well as access to Harrods Aviation, Harrods Estates, Harrods Interior Design, and private shopping services at the Knightsbridge shop.

Chinese customers account for about a fifth of the global luxury market, so many top brands, such as LVMH and Hermes, are shifting their resources to focus on mainland China. Harrods is confident in the growth of wealth in China and aims to cater to the big spenders who continue to shop despite economic insecurity and youth unemployment.

Harrods to open first private China club catering to ultra-rich

What: The JLP is diversification plan presented in 2022.

Why it is important:  Even though the move raised eyebrows (and cost the CEO’s position), the JLP keeps on exploring the idea of managing and renting homes, both through new developments and with the redeployment of former department store premises.

The John Lewis Partnership and investment company ABRDN have submitted their first planning applications for 'build-to-rent' sites in West Ealing and Bromley as part of a GBP 500 million joint venture.

The proposed developments, aiming to make 35% of the properties affordable for key workers, will offer 428 and 353 new homes respectively, featuring public piazzas, landscaping, Waitrose shops, and cafes. Additional amenities will include residents’ lounges, dining areas, roof gardens, flexible workspaces, and gyms. All homes will be furnished by John Lewis and offer options for short and long-term tenures. Plans for a vacant warehouse site in Reading will be presented later this year.

John Lewis pushes ahead with plans to build and operate rental homes 

What: Uniqlo is making the most of the return of Chinese shoppers in stores.

Why it is important: The Chinese consumption recovery is a reality however for now it did not translate on traditional external markers (Europe).

Uniqlo's parent company, Fast Retailing, is predicted by analysts to report a 25% increase in profits for Q3, setting a new record for the company. This comes as the retailer's recovery in the Chinese market continues, with sales and profit seeing a sharp uptick since January.

Fast Retailing has over 925 Uniqlo outlets in mainland China, surpassing the number in Japan. Furthermore, the company's shares have seen a 30% rise this year, contributing to founder Tadashi Yanai's status as Japan's wealthiest individual.

In light of pandemic restrictions in China, Uniqlo has been concentrating on its North American and European operations, with plans to expand from 61 to 200 stores in North America by 2027.

Uniqlo’s profits are soaring thanks to a Q3 record in China 

What: Liberty has partnered with Klarna to offer the buy-now-pay-later service to its online customers.

Why it is important: The new payment option will allow shoppers to pay for luxury items in interest-free instalments.

Klarna’s research shows that 42% of shoppers would prefer to use BNPL over a credit card (33%) to buy pricier items. This will broaden Klarna’s customer base as well as encourage customers to consider their consumption and shopping habits.

Other luxury retailers offering this option include Harrods, Farfetch, and Rimowa.

Liberty adds Klarna to its payment options 

What: Falabella.com becomes the marketplace with the largest logistical capacity after the opening of its two new transfer centres.

Why it is important: The new facilities have nearly maxed out the expansion of Falabella.com in Chile as it now allows them to optimise the deliveries in the extreme areas of the country.

The opening of the two centres – in Arica and Punta Arenas – increases the number of facilities of this type that the company owns from 13 to 17. The CEO, Jaime Ramirez, mentions that the company is decentralizing their operations to be able to service clients in remote areas of Chile.

Falabella.com is already the largest marketplace with the greatest logistics capacity in Chile

What:  Decathlon is simplifying its private brand portfolio by having its more established brands absorb recent labels.

Why it is important: The company wants to improve its customer shopping experience with a more streamlined range of private brands to choose from.

Decathlon aims to reduce its numerous brands to only 12 flagship labels such as Quechua, Domyos, Tribord, Inesis, and Kipsta.  This is in an attempt to optimize storefronts and support sustainable practices.

With a more comprehensible and tailored product selection, the store strives to improve the customer experiences all while preserving the style options.

 Decathlon is moving towards streamlining its multiple private brands 

What: Inditex plans to expand its resale service and increase its use of next-generation and recycled materials in an effort to halve its emissions by 2030.

Why it is important: The ambitious moves come as the EU pushes to put an end to fast fashion.

The group is aiming for 40% of its materials to come from conventional recycling and 25% to come from new innovations by the end of the decade.

Inditex has already started to invest in the space, participating in textile recycler Circ’s series B funding round and also signing a EUR 100 million contract with a Finnish textile-to-textile recycling business.

The company has also added new targets to source 25% of its fabrics from regenerative or organic farms and the final 10% from sources certified have a lower impact. They also plan to introduce repair, resale, and takeback services to key markets and have a goal to protect, restore, and regenerate 5 million hectares of land by 2030.

Inditex has a goal to reach net-zero carbon emissions and has stepped up its plans to cut emissions in its supply chain with a goal of cutting its scope 3 emissions by 50% by 2030.

Last year, Inditex was responsible for emissions amounting roughly 18 million tons of carbon dioxide equivalent, more than H&M Group and Shein combined.

Since 2018, the company has succeeded in reducing its emissions by 7%.

Inditex ups sustainability commitments as regulators take aim at fast fashion

What: The LA-based retailer has partnered with Hear Me Raw, an indie skincare brand on a co-branded skincare collection.

Why it is important: The partnership is Fred Segal’s first co-branded exclusive beauty partnership.

The collection features four products that highlight the importance of natural ingredients and sustainability in skincare.

Fred Segal stated that they understand the growing significance of sustainable beauty and the demand for products that prioritise the well-being of individuals and the planet.

The partnership is also Hear Me Raw’s first entry into a retail destination, as the collection will be featured at Fred Segal’s Sunset Boulevard flagship as well as the Malibu and Studio City locations.

Fred Segal enters first co-branded beauty collab with Hear Me Raw

What: The Q2 luxury spending of Chinese consumers is higher than expected from Q1 surveys and the jewellery category has overtaken handbags as Chinese nationals choose to shop more conservatively by investing in luxury purchases rather than indulging.

Why it is important: Despite concerning economic situations such as job security and stringent zero-Covid policies, the upper class of China continues to drive the recovery of the Chinese luxury market.

Chinese consumers are making a comeback in the luxury fashion market with reports showing that two-thirds spend over RMB 15,000 on luxury fashion products in Q2 2023. Wealthier millennial and Gen Z women above 25 years old are the main high-end consumers.

Chanel and Dior were the most purchased luxury brands, followed by Gucci, with 87% of brands seeing an increase in the number of consumers purchasing luxury brands during this period. The jewellery sector is more appealing to consumers now due to the retainment of value as compared to leather goods; the high price point is accessible to the very wealthy who are the top consumers of luxury. Van Cleef & Arpels and Rolex are forecasted to see the greatest percentage gains in Chinese consumer sales in Q3.

Chinese tourism is set to rise in the second half of 2023 which in turn will amp up international spending, particularly in the UK and EU where there is price favourability.  Luxury brands have strategised to set up salons and boutiques to also appeal to the ultra-high net worth clientele.

Q2 sees the Chinese luxury market perform beyond Q1 expectations

What: A discussion of the fundamentals of nearshoring and its future in the apparel industry

Why it is important: The industry trend will decrease the supply chain risk and increase efforts in sustainable practices.

Nearshoring, the manufacturing of apparel in Canada, the US, Mexico, and Central America, is proven to be a favourable strategic plan for many companies. In addition to sustainability, the Covid-19 pandemic revealed flaws in the supply chain because of inventory being stranded on the other side of the world and the need for proximity.

There has been USD 2 billion of new investment in the United States and Central America significantly in the production of yarn, fabric, textiles, and apparel products. The “yarn forward” rule indicates that if a garment is produced in one of the included NAFTA countries, for example, Guatemala, then the yarn, fabric, cutting, and sewing also needs to happen in the region. The rules of origin will drive investments as close-by suppliers are appealing to brands and retailers.

There are still many businesses that benefit from trade agreement loopholes such as the “de minimis” rule where brands and retailers outside the North American region can sell and ship directly to customers without paying tariffs on items that cost less than USD 800.

Consumer preferences are a nudge for companies to evaluate their sourcing decisions and evade the risk of supply chain disruptions, human rights concerns, and environmental awareness.

Nearshoring: Driving sustainable growth 

What: Ssense has included an AI tool in their online shopping experience which can assist clients with styling questions and get responses with links to products from its catalogue.

Why it is important: Fashion retailers are jumping on the trend of integrating AI into their shopping experience, and Ssense is going a step further by incorporating the technology of ChatGPT.

The online retailer, Ssense, has included an AI tool on their website to aid shoppers with their shopping and styling questions. Their version integrates directly into ChatGPT where subscribers of ChatGPT Plus can download a plug-in from Open AI’s store. By using a mix of Open AI’s technology and property AI models, it allows users to ask questions and get both recommendations and links to products from Ssense’s catalogue. As there is still room for improvement, the company hopes to advance with their chatbot as generative AI advances.

Ssense Launches an AI-Based Personal Styling Chatbot