What: The brand is extending its rental subscription service to 1,000 users for its second stage of development.

Why it is important: The company is seeing an increase in performance while also reducing environmental impact.

The retailer is testing a new business model centered around use rather than ownership.

Through a monthly package with three formulas costing EUR 25, EUR 50, and EUR 95, consumers can have items whose total value must not exceed a certain amount, EUR 400, EUR 1,000, and EUR 2,000 depending on the subscription.

Customers can rent punctually such as a paddle in the summer or skis in the winter or over time and the entire Decathlon catalog is available, including textiles. Repair costs are the consumer’s responsibility, with breakage and theft insurance included. All items are reconditioned by Decathlon between each use.

During the retailer’s first phase, customers used an average of 24 products and emitted 130 kg of CO2 per person over the year, which is much less than owning all the items and also cheaper as customers paid three to six times less than if they had bought the products.

The co-director of We Play Circular encourages all retailers to test out rental services as they want to find the right solutions and continue to see success. He also noted that subscription income is almost only gross margin.

Rental: how Decathlon is moving up a gear in Belgium

What: Macy's has lowered its projections for business in 2023 due to falling profits and revenues in the first quarter.

Why it is important: The retailer saw weaker than expected sales as its consumers are under pressure and spending closer to need.

The company experienced a 7% decrease in net sales and 7.2% decrease in comparable sales while the namesake department store saw a 7.9% decrease.

Bloomingdale's suffered a 4.3% decrease in comparable sales, while Bluemercury saw a 4.3% rise.

One of the main factors cited for the lack of business was failure to offer enough products suitable for colder weather.

Macy's plans to offer more aggressive discounts in Q2. The company is also positive about greater investment in private labels and five growth vectors including personalized shopping experiences, digital strategy, luxury, and smaller formats.

Following these results, Macy’s has lowered its projections for the year, expecting sales to reach USD 22.8 billion to USD 23.2 billion in comparison to its previous expectation of USD 23.7 billion to 24.2 billion.

Macy’s Inc. reports tough first quarter 2023 results

What: Frasers invests in its electrical supplies.

Why it is important: While this is not the first time that a department store company purchases a supplier, the move surprised analysts.

Frasers Group, known for its investments in fashion businesses, has acquired a 'strategic stake' in electricals retailer AO World for GBP 75 million. This move marks a shift from Frasers Group's recent focus on fashion-related categories.

The investment follows two years of discussions about a potential strategic partnership. Frasers Group's CEO, Michael Murray, expressed optimism about the partnership, stating that AO's expertise in electricals and two-man delivery will help drive growth in Frasers Group's equipment and homeware ranges. AO's CEO, John Roberts, also welcomed the partnership, citing the potential for strategic opportunities.

Frasers diversifies in electricals retailer AO World 

What: Neiman Marcus Group has opened a new corporate hub, strategically located between its two Dallas flagships.

Why it is important: The retailer’s innovative approach aims to enhance collaboration, attract top talent, and reduce real estate costs.

The Dallas Hub is NMG’s remote-first hybrid environment which supports its integrated work philosophy, empowering teams to work wherever, whenever, and however to achieve their best results.

The new space spans 85,000 square feet, occupying three floors of a 42-story building located between the retailer’s Downtown and Northpark Center flagships.

Nemain Marcus Group launched new Ways of Working (WOW) in 2020, its integrated working philosophy which is built on a strong foundation of flexibility and accountability. The philosophy is built on four pillars: work smarter, be present, integrate work and life, and empower each other to achieve results.

WOW, and the group’s network of Hubs has revolutionised associate experience and also enhanced the retailer’s ability to attract top talent. As a result, they continue to see increased productivity, engagement, and efficiency from their teams, with an initial increase of 34% in employee satisfaction.

The three-story space is custom-built for NMG teams and can provide flexible workspace for up to 800 employees. It features iconic references of the retailer’s past and present, with merchandise displays, photographs, and five lounges that include themes from top store locations or pieces from collaboration with brand partners.

Neiman Marcs unveils innovative new Dallas Hub

What: Alibaba Group will make Europe top priority as it focuses on building local businesses and online platforms outside China, the president of the e-commerce giant said on Thursday.

Why it is important: J. Michael Evans shared that the group will focus on building local businesses through a new initiative called TMall, which already exists in China.

Alibaba plans to bring TMall to Europe in which it will serve local brands and local customers in local markets, according to the president.

A pilot project is already underway in Spain, with plans to expand across Europe.

Alibaba president says group will expand local business in Europe 

What: After exiting Coupang, Shinsegae creates alliances to counter its influence.

Why it is important: Would that be an example for worldwide retailers in front of Shein?

South Korean retail giant Shinsegae Group has partnered with major retailers to counter the influence of e-commerce operator Coupang.

Gmarket, Shinsegae's online shopping subsidiary, is running a promotion with Auction, CJ Cheiljedang Corp., LG Household & Health Care Ltd., and Coca-Cola Korea. The promotion offers a 15% discount coupon for Shinsegae Universe to members of Gmarket and Auction.

Additionally, Shinsegae plans to launch a collaboration package event where customers can receive a free LG H&H product when purchasing a CJ Cheiljedang product, or vice versa.

This move is seen as a joint response by Shinsegae, CJ Cheiljedang, and LG H&H to curb Coupang's influence, following a pricing dispute that led CJ Cheiljedang and LG H&H to withdraw from the e-commerce retailer.

Shinsegae seeks alliances to counter e-commerce pure player Coupang 

What: The Parisian department store has been turned into a carnival to pay tribute to its founder who built the first-ever amusement park in Paris, Magic City

Why it is important: The department store is paying tribute to its past, while also creating an interactive and unique store experience for its customers.

A multitude of activities and colorful stands can be found throughout the many floors of the store such as Magnetic Tweezers and The Acquatic Ballet, pinball machines, and arcade terminals.

Snapchat is providing augmented reality experiences while artist Pierre Brault is exhibiting his work which is representative of the Samaritaine woman.

The Musée des Arts Forains also unveiled an exhibition which features historical elements fo the funfair, wooden horses and other iconic animations.

Free reign was given to 3D artist Clément Morin, the motion designer who designed both digital and animated works to be displayed on the exterior of the store as well as around the store’s grand staircase.

La Samaritaine dons the colors of Magic City 

What: Google is utilising AI to allow US-based users to view clothing on a selection of models in a virtual fitting room.

Why it is important: Google is rolling out this feature as a response to the increasing demand for hybrid ways to shop online, as Google reported that 59 percent of shoppers felt dissatisfied with an item they shopped for online because it looked different on them than expected.

Now, through the feature, customers can select models that range in sizes XXS to 4XL and represent different skin tones, body shapes, ethnicities and hair types.

Google said that the generative AI model also has the ability to take an item of clothing and accurately reflect how it would drape, fold, cling, stretch and form wrinkles on the body.

Alongside this, the platform’s new guided refinements can help shoppers fine-tune products, with machine learning and visual matching algorithms in place to refine inputs like colour and style.

Google unveils AI-powered try-on feature for clothing 

retail dive article

What: The Belgian chain is doing well, with a profit for the second consecutive year. But Covid-19 repayments are still looming.

Why it is important: The consequences of the European states’ aid during the covid are likely to be felt for a few years again.

Last year, Hema reported a 20% increase in comparable sales, with a net revenue of EUR 1.3 billion. For the second consecutive year, they posted a net profit of EUR 32.9 million, following a takeover and debt restructuring in 2021.

However, they must repay EUR 107 million in deferred taxes and EUR 11.4 million in government support from the Covid period. This repayment, though, indicates that Hema's revenue losses were less than expected.

Hema to reimburse EUR 100m of Covid-related state aid 

What: Fashion’s CEOs are acknowledging a more cautious consumer in the US as they report first quarter results.

Why it is important: CEOs are shifting their tone as they notice American shoppers pulling back.

As first quarter results come in, CEOs are standing by their plans while also noting a shift in consumer behavior.

Capri Holdings saw success in Asia as well as the Middle East, Europe, and Africa however reported a decline in North America. The group’s CEO stated that they first saw the decline in North American department stores with Michael Kors but also the luxury side of the business. The group is feeling the pulling back in the beginning of the year from consumers who were previously feeling positive about their financial situation in 2022.

At Victoria Secret, numbers decreased by high single digits across the board. While the retailer doesn’t have a single answer for the sharp decline in the category, they are focusing on getting traffic into stores within the difficult environment.

Macy’s saw demand trends worsen starting mid-March with an even further decline in April. They attribute the decline to cooler temperatures and headlines regarding layoffs and the banking crisis. The retailer saw the US consumer pull back even more than anticipated as customers reallocated their spending towards food, essentials, and services. As a result, they have readjusted their outlook for they year, expecting macro headwinds to continue and potentially worsen.

Nordstrom continues to see customer demand under pressure and has seen an impact since June of last year with its top-line results being impacted at both the Rack and its full-line stores. In 2022, the retailer benefitted from a strong pent-up demand for a return to occasions, making year-over-year sales comparisons for Q1 difficult. However the retailer expects these comparisons to get progressively easier as the year continues.

PVH Corp. beat first quarter earnings projections but is proceeding cautiously as they recognize the current macroeconomic environment and have decided to reaffirm their annual guidance.

Macy’s and other fashion CEOs offer scarier take on the US consumer

What: GDR UK reviews 5 use cases using AI to provide new advantages to customers.

Why it is important: Out of the 5 examples, only 2 are customer-facing, the remaining 3 are operating in the back end and show how AI can help retailers save some productivity points.

AI continues to revolutionise the retail industry in 2023, as evidenced by the case studies of innovative applications of this technology.

The AI-powered search tool 'Ask Instacart' was launched by US grocery delivery company Instacart, which uses natural language processing to assist users with recipe queries, product suggestions, dietary requirements, and personal recommendations based on their shopping history.

Pactum, a start-up operating out of California and Estonia, developed an AI tool that manages buyer-vendor negotiations. The system, which adds value to supplier agreements and is favoured by vendors, is used by clients such as Walmart.

Verneek, a generative AI start-up from New York, has introduced Quin Shopping AI. This tool specialises in answering customer queries relating to consumer products, both online and in-store, with a focus on specificity to avoid the inaccuracies seen in other AI models.

Google is also playing a significant role in transforming e-commerce with its Product Studio. This tool uses generative AI to change how businesses create and modify product imagery, reducing manual intervention and enhancing the consistency of the online shopping experience.

Firework, a video commerce platform, has also introduced its generative AI tool for in-video chat features. This tool allows for instant responses in chats even after the live stream has concluded, transforming any pre-recorded video into an 'always-on livestream' and turning them into points of engagement and purchase. The beta version of this tool has been launched with US supermarket chain The Fresh Market.

The transformative power of AI in the retail industry continues to grow, with these case studies illustrating its potential to streamline operations, improve the customer experience, and drive business growth.

GDR’s top 5 AI Case studies 

What: The department store will be hosting a pop-up with a London-based tattoo studio, to offer tattoos and piercings in a trusted and inclusive environment.

Why it is important: The initiative shows that high-end retailers are increasingly prepared to embrace products and services that might not have been on their radar previously.

The pop-up will be open for two months in the store’s beauty department and will feature a full line-up of artists from Debut Studios.

Harvey Nichols Manchester to host piercing and tattoo artists

What: The online clothing sales group soared on the London Stock Exchange on Thursday after a return to profitability in Q3, despite a decline in sales.

Why it is important: The action jumped 13% to 370.00 pence in early trading.

In a press release on Thursday, the British online distributor announced a "return to profitability with earnings before interest and tax (Ebit) up by more than 20 million pounds over one year".

The group thus notes that it has lost 800,000 “active” customers since the first half of the year, but has seen its profitability per order increase by 30% since the start of the year.

Asos wants to continue on this trajectory, continue to reduce its inventory for the rest of the financial year and says it is confident that it will generate cash to reduce its net debt.

Asos soars on the stock market after its Q3 despite a decline in sales 

What: After more than two decades operating San Francisco Centre, Westfield is handing over the mall’s keys to its lender.

Why it is important:  A spokesperson for shopping center operator Unibail-Rodamco-Westfield announced it is handing over the keys to its lender, after 20 years of operating in the San Francisco Centre, the group has been investing significantly over that time in the vitality of the property.

Annual sales at the mall plummeted from $455 million in 2019 to $298 million in 2022, per the email. In that time, sales at Westfield’s Valley Fair mall in nearby San Jose rose 66% and the company’s overall U.S. flagship sales rose 23%.

Also in that time, foot traffic declined 43% to 5.6 million visits from 9.7 million, while the U.S. portfolio saw a 98% recovery. Occupancy also fell some 55% — including the recent closures of Nordstrom and Banana Republic — while the portfolio averages about 93%, the spokesperson said.

Westfield is handing over the keys to San Francisco Centre mall 

What: Galeries Lafayette’s Indian partner enters a new product category.

Why it is important: Jewellery is a booming market, and this could provide Galeries Lafayette with the access to a very profitable new category too.

The Aditya Birla Group is investing about US$605 million to enter the retail jewellery business with a new venture called 'Novel Jewels'. This move is part of their strategy to tap into the growing Indian jewellery market, projected to reach $90 billion by 2025.

Additionally, the group's fashion business recently acquired a 51% stake in TCNS Clothing, which owns ethnic brands W, Aurelia, Wishful, Folksong, and Elleven, for $202 million. The deal marked one of the country’s largest acquisitions in the Indian fashion industry.

Aditya Birla Group enters jewellery 

What: eBay announced that it is now authenticating streetwear brands under its Authenticity Guarantee where eligible items are verified by experts with brand and category knowledge.

Why it is important: Authentication is becoming an increasingly available feature that department stores interested in second-hand and second-hand marketplaces should take notice of.

New or pre-owned items from nine streetwear brands sold for more USD 200 are eligible for authentication.

EBay covers all costs of the authentication process and authenticators will re-inspect an item if it’s returned before sending it back to the seller.

From April 2022 to April 2023, searches for “streetwear” on eBay were up approximately 100%. Customers expressed that they want to be able to sell and buy apparel in the same seamless way they can sneakers. EBay took notice of this and delivered with the launch of Authenticity Guarantee for streetwear.

Each verified item receives an authentication tag with a QR code where customers can access the item’s credentials; the same code can be used to relist the item in the future.

This makes the sixth category that eBay authenticates, along with streetwear sneakers, watches, jewellery, handbags, and trading cards.

The marketplace has been heavily focusing on authentication in recent months. In May it acquired Certilogo, an AI-powered authentication company and in April it introduced its “Certified by Brand” luxury resale program. It also bought 3PM Shield, an AI fraud detection company, in February to help in finding suspicious merchants.

EBay expands Authenticity Guarantee to streetwear

What: The chief executive officer of Frasers Group fashion, Greg Pateras, made his departure from the retail conglomerate this week.

Why it is important: During his time at the company, Pateras oversaw Frasers Group’s collection of fashion brands, Missguided and ISawItFirst, the latter of which he was previously CEO of.

He was promoted last August to lead all of the newly acquired brands, helping them to integrate into the group itself, as well as its tech stack and logistics infrastructure.

He was credited with significantly reducing overheads as part of the mergers, as well as repositioning both brands to put them back into a profitable position.

Frasers Group CEO Greg Pateras exits 

What: H&M posted slightly weaker-than-expected fiscal second-quarter sales.

Why it is important: Although Q2 sales were flat, the Swedish retailer prospects for a better third quarter after a strong start in June, sent shares in the retailer up by 6 percent.

H&M said sales measured in local currencies for its March-May quarter were “flattish”, compared with the average analyst forecast for a 1 percent gain, according to a Reuters poll. Net sales rose 6 percent to 57.6 billion crowns ($5.36 billion).

H&M reports weaker-than-expected Q2 sales 

What: AI tools are helping vendors on Amazon improve their product listings and optimise them.

Why it is important: AI is revolutionising the e-commerce industry and can help retailers drive sales and save time.

Artificial intelligence is being used by e-commerce management systems to help vendors on Amazon rank higher and improve their visibility to customers.

Jungle Scout and Viral Launch are two companies that have recently launched AI features to assist with product listing optimisation on Amazon.

Jungle Scout's AI feature generates product listings based on keywords and provides analytics on search terms and optimisation performance. Viral Launch plans to release its own AI-assisted selling feature later this year.

With AI's ability to translate copy into foreign languages, selling in international markets has become more accessible.

Using AI to make shoppers buy

What: Shein is expanding its multi-category offer and is planning the launch of an integrated marketplace in Europe.

Why it is important: That marketplace has already launched in the US and Brazil, and the company said it will be coming to Europe and the UK this autumn. Marketplaces have become must-haves for online retailers in recent years, and it's no surprise that the company is diving deep into this area.

It said that “through strategic collaborations with renowned global brands and trusted third-party sellers, trend-lovers will now have access to a wider range of product categories”.

New categories include a big focus on products for the home from ingenious portable washing machines to smart home products such as remote-controlled lighting, as well as bathroom and kitchen fixtures and wallpaper.

Shein will launch Europe marketplace

What: Investors and consumers are becoming nervous about China’s post-pandemic recovery as its economic data is looking shaky.

Why it is important: For the luxury industry to maintain its strong growth, China needs to pick up the slack as the US market slows.

Concerns over the risk of deflation in China's C-shaped recovery have led to caution in the luxury goods market, with a slowdown in the US market and an emerging Covid wave contributing to pessimism.

China's importance to the luxury industry means that, in order to maintain the strong growth of recent years, the US market must be replaced.

Despite the pent-up demand for luxury goods in some quarters, China's recent economic instability, particularly in relation to the property sector, may impact investors' expectations.

Further instability could lead to a decline in the luxury goods market, with European luxury stocks particularly vulnerable.

Companies like LVMH, Hermès and Richemont are well-placed to weather any downturn thanks to their size, investment opportunities, and long-standing reputation, while Kering and Burberry look more vulnerable.

The luxury party is fizzling in China

What: The London department store will feature The Diamond Lab, a lab-grown diamond brand, in its jewelry and luxury watches department.

Why it is important: The development of lab-grown diamonds aligns with Selfridges’ efforts to become more sustainable and reinforce its luxury positioning as lab-grown stones are more ethical and gaining in popularity.

Selfridges is welcoming The Diamond Lab as the first lab-grown diamond brand to appear in its Wonder Room. The department store previously added pieces from Vrai to its online offer however, a presence in-store is a larger endorsement for lab-grown gems targeting the luxury shopper.

The in-store offer will cover three collections with prices ranging from GBP 375 to GBP 350,000. A limited-edition Yellow Diamond line will also be available featuring Selfridges’ signature color, yellow.

To celebrate, Selfridges will be inviting customers to enjoy experiences such as jewelry design workshops to create custom jewelry or design their own pieces from The Diamond Lab.

With the diamond trade facing negative publicity, lab-grown gems are growing in popularity given that they are more ethical and offer superior quality.

Selfridges links with lab-grown diamond brand in-store

What: Walmart aims to become a destination for fashion customers.

Why it is important: Low prices strategy is not sustainable on the long term in a digital world. More is expected by customers in physical locations.

Walmart is undergoing a transformation to attract higher-spending customers by adding pricier merchandise, including collaborations with celebrities like Drew Barrymore and Sofia Vergara.

The retailer is shifting from its traditional image as a discount store to becoming a destination for fashionable home goods and clothing. As part of its “Stores of the Future” initiative, Walmart is renovating 700 stores and introducing national brands like Reebok and Justice, with most goods priced between USD 15 and USD 50.

The company aims to convert its price-conscious customer base into style-conscious shoppers. However, Walmart's earlier attempts to branch into fashion have been unsuccessful, and the new strategy presents risks and challenges in the highly fragmented markets for home decor and apparel.

Walmart is using its grocery activity to draw customers, and keeps them with a new brand assortment 

What: IKEA purchases Made4net in order to boost online capabilities.

Why it is important: This is only the third acquisition made by the group in 6 years, in spite of its formidable financial capabilities (and needs).

IKEA, through its parent company Ingka Group, is acquiring US supply-chain software provider Made4net to enhance its e-commerce operations. The move aims to make IKEA's growing online business faster and more precise. IKEA's chief digital officer, Wim Blaauw, emphasised the need for "state-of-the-art" technology to improve the customer experience for digital shoppers as online orders continue to increase. The acquisition of Made4net will allow IKEA staff to locate and dispatch products more quickly and accurately. Made4net, founded in 2005, will continue to operate as a stand-alone company.

This purchase is IKEA's third 100% acquisition, following its acquisition of TaskRabbit in 2017 and Geomagical Labs in 2020, both also US companies. IKEA is planning significant expansion in the US, with an investment of $2.2 billion to open 17 new stores over the next three years. It has also committed to spending more than $3 billion globally to upgrade its existing stores and invest in technology to enhance its order processing capabilities.

The decision to buy Made4net rather than just license its software was made because order fulfilment is a central aspect of IKEA's operations, and the company wanted to own this crucial stage in the selling process. The new software is expected to start rolling out in IKEA stores in the coming year, but it will likely take several years to fully implement globally.

IKEA makes software acquisitions to speed up e-commerce