What: Walmart expands its HIV program, launched in 2021, to 80 stores nationwide.

Why it is important: US retailers increasingly pre-empt every single aspect of consumer health, killing two birds with one stone: bring a useful service to customers in need, and contribute to the overall image of the retailer.

Walmart has launched an HIV specialty-pharmacy pilot program in late 2021, targeting communities with high incidences of HIV. The program, which is set to expand to over 80 HIV-specialty facilities across nearly a dozen states by the end of this year, offers specialized training for pharmacists on HIV conditions and treatments.

The initiative aims to make antiviral medications more widely available and provide support services, in line with the Department of Health and Human Services’ goal to end the HIV epidemic by 2030. Walmart, along with CVS Health and Walgreens, is also working to offer free HIV testing and facilitate free home delivery of HIV medications.

The move comes as major pharmacies aim to expand their healthcare services and establish themselves as community retail health providers.

Walmart plans to expand its specialty HIV outreach 

What: Harbour City, Hong Kong’s largest mall, is focusing on luxury to attract consumers.

Why it is important: Having an exclusive product offering and providing luxury experiences are key in attracting customers as consumer behavior changes during the post-pandemic era.

While Hong Kong is seeing a return of tourists, its retail property owners and tenants are being threatened by the prevalence of e-commerce and competition from other Chinese locations.

Harbour City has long been a destination for high-spending Chinese tourists, however, sales are being hindered by limited flight capacity and product supply issues for brands. While these issues are expected to be resolved and Harbour City has seen sales and foot traffic return to more than 70% of its 2019 peaks, the mall is having to work harder than before to attract customers and get them to spend as they previously did.

With growing signs of consumer spending on the mainland and the weakening economy putting pressure on consumers, the mall is focusing on its exclusive offerings and strengthening its relationships with popular brands.

As a result of this changing consumer behavior, landlords and retailers in Hong Kong have to offer more than just space. Harbour City has 530 meters of high fashion frontage that includes all the big names such as Chanel, Louis Vuitton, and Prada. The flagship stores offer exclusive or limited products to attract customers to visit these specific locations.

Hong Kong’s biggest mall amps up luxury appeal to compete for shoppers

What: Neiman Marcus executives are expected to discuss the possible selling of Bergdorf Goodman and the entire company this week.

Why it is important: The speculation is representative of the current state of the luxury market in the US and the potential sell could decrease the overall value of Neiman Marcus.

According to sources close to the situation, Neiman Marcus is set to meet with potential buyers this week.

With profitability decreasing, sources state that Neiman’s minority owners are looking to exit while its majority owner wants to maintain control and is optimistic about a turnaround.

The speculation comes as Bergdorf’s financials were leaked earlier in the month, showing that profitability had decreased, and revenue dropped 9% to USD 1 billion.

Neiman Marcus weighs possible sale of Bergdorf Goodman

What: Falabella Retail launched the "Mentoring & Talent" program, in partnership with the consultancy Desarrolla Más.

Why it is important: The project has the participation of 30 employees from Chile, Peru and Colombia with the aim of promoting the development of company professionals in the region.

The program works to pair mentors with apprentices, in which mentors will assist apprentices in their learning processes, and share their experiences and knowledge.

It also includes workshops and learning capsules with the goal of improving leadership skills and competencies and culture within Falabella.

Falabella Retail points out that this new program expects to see positive changes in a period of 1 to 2 years through different performance evaluations.

Falabella Retail starts its new program called Mentoring & Talent 

What: The beauty retailer’s chief merchandising officer shares her thoughts on how the beauty industry will increasingly prioritize mixing products and services that emphasize wellness into daily routines.

Why it is important: The beauty category continues to outpace the global economic outlook and there is no greater growth vehicle within the category than wellness.

Beauty and wellness have become synonymous as consumers increasingly focus on feeling good and taking better care of themselves, a trend that developed during the pandemic.

The trend started in skin care, evolved to hair, and is now more focused on makeup as customers are going out and attending more events post-pandemic.

Ulta launched a wellness shop in 2021 with the aim of creating something that crossed categories and made it easier for customers to shop.

The retailer began with a more everyday basic care range before adding five pillars to its offering, including relax and renew, which became more popular during the pandemic and intimate wellness which launched at the end of Q3 in 2022.

Arnaudo states that having a global perspective and taking a holistic view is important as 41% of people globally believe that wellness is a communal and societal issue than an individual goal.

Ulta has seen the luxury segment continue to grow, attributed to the influx of social media as more than 80% of Gen Z and Millennials will purchase a luxury beauty product if they see it on TikTok.

Wellness will continue to be a growth driver for the retailer which they attribute to the more than 150 wellness brands in their assortment.

Ulta Beauty’s merchandising chief looks inside a big bet on wellness

What: The online-only department store is creating a new division for premium brands on its website.

Why it is important: The new division will give the retailer an elevated presence as they continue to reposition themselves as a digital department store.

As a marketplace-led and commission-based business, the retailer is focused on building its proposition to the consumer, with the main focus being on fashion, home, and beauty with a combination of everyday brands and premium brands.

The retailer is looking to build the brand back bigger, bolder, and better as the great British digital department store.

Debenhams to launch premium brands division

What: Shinsegae still sees opportunities for new real estate programs in Korea.

Why it is important: The Korean market is already very developed and the country has embraced new technologies, including Metaverse, far beyond other ones in the region, however there is still space for a new mall.

Shinsegae Group, a South Korean retail giant, plans to build an integrated Starfield shopping complex in Incheon by 2027. The complex will span 1.65 million square meters and include a multi-purpose dome for sports and cultural events, a hotel, and an infinity pool.

Shinsegae expects the complex to attract over 25 million visitors annually and generate US$2.8 billion in economic value. The dome will also serve as the home stadium for the South Korean baseball team SSG Landers starting in 2028.

Shinsegae to build a new mall in Incheon by 2027 

What: The new Yoshiko salon at Bergdorf Goodman never managed to take off and is closing down.

Why it is important: Services and experiences are crucial in today’s retail, however these need to be carefully crafted in order to answer an actual need. Yoshiko never managed to catch up with Barrett, which was a meeting point for the city’s socialites.

Salon Yoshiko, located on the ninth floor of Bergdorf Goodman, will close on July 3rd, 2023. The salon, which occupied a 4,500-square-foot space and offered beauty services, opened in 2019.

The closure, mutually agreed upon by Yoshiko and Bergdorf Goodman, is primarily due to economic reasons. The space previously housed John Barrett’s salon and before that, was a penthouse apartment for the Goodman family.

The closure will affect 52 employees. Salon Yoshiko’s Palm Beach location remains open.

Beauty salon at Bergdorf Goodman to close 

What: Designer Brands (US) announced that Nike was resuming business relationship with them.

Why it is important:  In a spectacular fashion, Nike is reversing some of its decisions related to stop some wholesale partnerships, which were initially cancelled to leave room for Nike’s DTC strategy.

Nike is reestablishing partnerships with some retailers to help clear its inventory, reversing a previous strategy to sell more products directly to consumers.

Designer Brands recently announced that Nike products would return to its stores in October.

Nike had previously dropped about 30% of its wholesale accounts, including Zappos, Macy's, Designer Brands, and Urban Outfitters, to focus on direct sales and strategic partners. However, increased inventory levels and changing market dynamics have led Nike to reengage with these retailers.

Despite this shift, Nike's wholesale revenue increased by 10% in the nine months through February compared to the same period last year.

Nike is trying to win independent retailers back 

What: Generative AI is growing in popularity in retail and companies are racing to supply the tools as the technology is set to super-charge the industry.

Why it is important: Generative AI has the potential to revolutionize the industry and transform customers’ shopping experience, from customer service to marketing and personalization.

Retail is facing an abundance of AI platforms that use machine learning, neural networks, deep learning, generative adversarial networks, and stable diffusion.

Generative AI is an obvious fit for retail, as shopping is a uniquely human experience that often relies on warmth and relationships. This version of AI has traits that are closely humanistic in how it communicates, serves up information, presents analysis, and creates or edits content.

ChatGPT is one of the most obvious examples, which is OpenAI’s generative responsible for setting off the current momentum.

Since OpenAI released software development tools in March, an explosion of new services and feature updates erupted, as well as competitors.

Google is targeting retail with its technology such as its Google Cloud partnership with Shopify and other offerings such as using AI to develop an apparel try on functionality for fashion search or its code generation and completion tool for creating chatbots.

Companies can also use AI models like Imagen and Chirp to create studio-quality visuals and support speech-to-text conversion in multiple languages

AI also has the potential to revolutionize e-commerce by creating personalized and curated shopping experiences, reducing operating expenses, and increasing speed to market for new products. However, challenges such as data quality, security risks, and the lack of industry-wide standards need to addressed in order to ensure a trusted and effective customer experience.

Researchers at IHL Group estimate that the impact of generative AI on the retail sector will boom over the next several years, hitting USD 9.2 trillion by 2029.

Rise of the retail bots

What: Kering acquires a brand and production capabilities by purchasing Creed.

Why it is important:  Niche perfumes and independent brands have allowed department stores to perform well in a pillar category, but, here too, they should expect consolidation.

French luxury group Kering is purchasing Anglo-French perfume house Creed for an estimated EUR 1bn - EUR 2bn. The ultra-luxury fragrance market, which Creed is part of, is growing three times faster than the overall fragrance market and is worth EUR 5bn.

Creed, which generated over EUR 250mn in revenue in the year to March, is likely to have secured a high price from Kering.

This purchase comes after Kering's decision to create an in-house division for its cosmetics and perfumes, improving control over crucial brands. While the acquisition can potentially accelerate the development of Kering's beauty division, concerns exist about it distracting from addressing underperformance in Gucci and using funds that could be allocated for more impactful deals.

Kering purchases Creed niche perfumes 

What: The luxury giant is expanding its use of Epic Games’ technology to create new virtual experiences across its brands.

Why it is important: The game is accelerating in luxury and will force department stores to be able to follow up.

LVMH has partnered with Epic Games, the creator of Fortnite and Unreal Engine, to revolutionize its creative process and offer customers new immersive product discovery experiences. This strategic collaboration will enable LVMH and its Maisons to use Epic's powerful 3D creation tools to provide experiences such as virtual fitting rooms, fashion shows, 360 product carousels, augmented reality, and the creation of digital twins.

Epic's tools, including Unreal Engine, Reality Capture, Twinmotion, and MetaHuman technology, will help LVMH unlock significant growth opportunities. LVMH will be able to leverage Epic's expertise to enhance the experiences offered to its customers in virtual worlds, aligning with the group's core strengths in the real world.

Several LVMH Maisons have already successfully adopted solutions from Epic. For instance, Bulgari unveiled a captivating metaverse experience inspired by ancient Rome, dubbed “Virtual Rome”, during Viva Technology in 2022. The project was developed using Epic’s Unreal Engine 5, resulting in stunning realism.

LVMH expands partnership with Epic Games 

What: A new retail media company has born in Europe.

Why it is important: The goal is to federate as many retailers as possible, and Unlimitail include for now Galeries Lafayette and Luisa Via Roma, alongside Rakuten, Kingfisher France of Showroomprivé, for instance.

Carrefour and Publicis have launched a joint venture called Unlimitail to exploit retail media in Europe and South America.

Unlimitail aims to meet the growing demand for retail media by combining Publicis' advanced technologies with Carrefour's expertise in the field. The platform has already partnered with 13 entities, encompassing over 120 million customers and 1.5 billion monthly page views globally.

Retail media, which allows advertisers to target shoppers with personalized promotions based on consumer data, is a rapidly expanding industry. Through Unlimitail, Carrefour and Publicis aspire to become major players in the retail media sector, which is currently dominated by Amazon.

Carrefour and Publicis create retail media giant 

What: Walmart’s CFO and head of investor relations outline how supply chain automation, in-store technology and remodels are impacting labour, sales, and consumer behaviour.

Why it is important: Walmart is investing in digital innovation which is allowing the retailer to increase productivity, reduce costs, and provide a better experience for customers.

The executives shared that customers who have a good experience on e-commerce are more likely to come back, as they become more accustomed to online shopping for groceries, they add in more general merchandise to their baskets.

Digital upgrades for its supply chain and stores is changing how employees do their jobs, for example,  investments in electronic shelf labels are saving workers from hours of work.

Walmart is also looking to make stores more efficient by using micro-fulfilment centres and automated storage and retrieval systems in its facilities. Additionally, they are outfitting existing distribution centers with automated storage and retrieval systems.

Their efforts to make an automated supply chain are making it more efficient and enabling them to better serve customers with reduced wait times and more accuracy in selecting items.

Once the supply chain transformation is complete, Walmart is expecting its unit economics around fulfilment to improve by 20%.

Some of the remodelled stores are seeing a 20% uplift in sales. The refreshed locations include wider aisles, improved signage, displays around apparel, and more brands. While the retailer notes that its is typical to see an increase in sales after a remodel, the uplift they have seen around this remodel has been much higher than usual.

Despite 65% of the stores being served by automation in the future to create a better experience and lower unit costs, the retailer doesn’t expect to make major changes to its associate headcount. They plan to redeploy individuals to do different jobs as well as upskill the workforce into positions that are serving the customer more or contributing to the overall technology.

With Walmart+, the retailer’s membership program, more digital engagement is possible with customers, allowing Walmart to better understand and tailor their offerings. Subscribers of the membership program tend to be younger, tech-savvy, more affluent and come through the grocery delivery or pickup channels. These members tend to shop more frequently and spend more than nonmembers.

While Walmart is focusing on digital innovation, convenience is an important part of where the retailer is headed as consumers highly value grocery pickup and delivery.

5 takeaways on digital innovation from top Walmart execs

What: Frasers Group has appointed Google Cloud partner and business technology consultancy Sada to develop and implement a new strategic data platform across its retail portfolio.

Why it is important: The new system will help the group scale data visibility and reporting across its portfolio of retailers and is also projected to help the group see nearly two times the value of its investment in the cloud.

The group’s CIO stated that they knew they needed to play catch up in the data space and shifting the cloud from an on-prem environment would be necessary.

Sada assisted the group in migrating its first dataset to Google Cloud’s BigQuery and will now provide it with a Cloud Advisory team to ensure consistency and flexibility toward the group’s long-term goal of building and maintaining a self-service, value-driven data model.

Frasers Group works with tech firm to develop new Google Cloud data platform

What: Kohl’s is planning to have 750-square-foot Sephora shops operating at 50 Kohl’s locations which would otherwise be too small to accommodate the typical shop-in-shops.

Why it is important: The US retailer continues to install Sephora shops across its stores as a key element in its turnaround efforts.

The small-format Sephora shops will merchandise products by category such as “best of foundation or best of fragrance” to create a simplified shopping experience and make it easier to find popular products.

By the end of the year, Kohl’s plans to have a Sephora presence in more than 900 of its stores and is on track to have a Sephora presence in all 1,100 of its stores by 2025.

Customising the Sephora shops to fit into additional Kohl’s locations demonstrates the retailer’s confidence in its Sephora strategy and how critical it is to its turnaround efforts.

The partnership continues to outperform expectations and allows Kohl’s to provide a prestige beauty experience, which further advances the customer experience.

Total beauty sales were up 150% year-over-year in the first quarter of this year and the company continues to gain market share in beauty.

Despite the increases in beauty, the company’s overall sales decreased by 3.3% to USD 3.36 billion and comparable sales decreased 4.3% with net income remaining flat at USD 14 million.

At smaller stores, Kohl’s will open scaled-down Sephora shops

What: Mytheresa is opening its newly expanded, 300-square-metre menswear store in Munich.

Why it is important: The luxury multi-brand retailer has expanded and updated its bricks-and-mortar menswear store to grow the men’s business as trends shift.

The retailer looks to seize the growing opportunity in men’s fashion with more space for brands like Loro Piana and Brunello Cucinelli to reflect “what is going on in the market” as  luxury menswear consumers show a growing preference for luxurious basics and design-led styles over ostentatious, logo-heavy fashion.

Mytheresa entered menswear in January 2020 and opened its dedicated physical store in Munich as well as on its e-commerce site. It has since made efforts to gain a stronger foothold in the menswear space and catch up with competitors, after focusing primarily on womenswear.

The category now accounts for 10 per cent of the business, and reported that it shows healthy growth.

Mytheresa opens bigger men’s store with focus on ‘timeless luxury’ 

What: A promotional piece giving some interesting insights on POS payment solutions and their added value.

Why it is important:  Portable POS solutions are now seen as a stapple by the most demanding customers who see it implemented by leading brands (Apple, Nike, Louis Vuitton). Department stores need to adapt.

Portable POS (Point of Sale) solutions are gaining popularity in retail due to their ability to enhance efficiency and customer experience:

1. **Enhanced Service Levels**: Equipping sales associates with portable POS devices allows for customer checkouts anywhere within the retail store, which is particularly beneficial for retailers attending events, pop-ups, or markets.
2. **Reduced Checkout Lines**: Portable POS systems reduce the length of checkout lines, which is essential as 73% of customers identify checkout experience as their primary pain point in in-store shopping. The reduced wait time minimizes the chances of customers abandoning their carts or rethinking their purchases.
3. **Flexible Shopping Experience**: Portable POS solutions cater to customer preferences for convenience in purchasing products and services. With 26% of consumers preferring in-store pickups for online orders and 11% favoring curbside pickups (17% for Gen Z), retailers are embracing these services as a part of an omnichannel strategy. Portable POS devices make in-store and curbside pickups more efficient and create additional touchpoints for personalized service.
4. **Increased Sales Opportunities**: For example, in apparel stores, allowing customers to check out in fitting rooms or checking inventory for different sizes on the spot can drive sales. Similarly, hardware store associates equipped with POS devices can suggest additional tools and parts to customers during the checkout process.
5. **Holiday Traffic Management**: During high-traffic seasons like holidays, portable POS systems can act as line-busting solutions, where temporary checkout stations can be set up to facilitate faster checkouts and improve the in-store experience.
6. **Back-of-House Functions**: Portable POS devices are not just customer-facing; they also help in performing back-of-house functions such as accessing sales reports.
7. **Integration with Existing Systems**: Square for Retail, available on Square Terminal, is an example of a portable POS solution that can expand checkout options and be integrated with existing retail systems. This single handheld device can handle payments, process returns and exchanges, print receipts, create orders, and view sales reports. It can also be used as a temporary checkout station during peak sales times.
8. **Adapting to the eCommerce Trend**: As eCommerce continues to grow, integrating a flexible and portable POS system is a way for brick-and-mortar retailers to stay competitive by enhancing speed, efficiency, and customer experience.

In summary, portable POS solutions are invaluable for modern retail environments as they offer flexibility, convenience, and enhanced customer service, which are crucial in the evolving retail industry.

The future of the retail POS is expanding beyond the counter 

What: Third party sellers are given new tools to display their products on Amazon.

Why it is important: Marketplaces offerings are becoming increasingly sophisticated to attract the best providers possible.

Amazon is collaborating with Hexa to allow sellers to create 3D and augmented reality (AR) models of their products, enhancing the online shopping experience.

Hexa's technology also enables sellers to create high-definition marketing materials. Amazon has been experimenting with AR for several years, launching tools that allow customers to virtually visualize furniture in their homes and try on shoes and eyewear.

The move aligns with a growing trend among brands and retailers to integrate AR technology into their operations, responding to consumer demand for immersive shopping experiences.

Amazon gives sellers access to Hexa’s AR, 3D tech tools 

What: Generative AI is all across retail now but should not be reduced to ChatGPT only.

Why it is important:  There are many use cases currently in use, but the future is not yet written and there remains many to be built.

Generative AI (GenAI) is revolutionising various industries, including retail, by offering an array of applications and solutions:

1. **Improved Personalisation**: GenAI enables hyper-personalisation by creating content that resonates with individual consumers, based on their behaviour and preferences. It allows for dynamic pricing, targeted products, and personalised incentives.
2. **Visual Search**: GenAI facilitates visual search where customers can find products by simply using an image. For example, Louis Vuitton's mobile app allows users to take photos of a bag and guides them on how to purchase it. GenAI can also analyse social media and fashion magazines to identify emerging trends.
3. **Product Demo Videos**: GenAI assists in creating product demo videos by generating scripting, storyboarding, video content, and voiceovers. It can also enable virtual try-ons and analyse user-created videos for feedback.
4. **Customer Service Enhancement**: GenAI helps in reducing the time-to-resolution for customer service queries by equipping call-centre agents with information and optimised conversation scripts. It can also assess a customer's mood during a call and adapt responses accordingly.
5. **Price Optimization**: By analyzing market data, competitive pricing, and consumer behavior, GenAI enables dynamic pricing strategies that help retailers increase revenue and remain competitive.
6. **Supply Chain Optimisation**: GenAI can streamline supply chains by generating efficient transport plans with optimised routes, minimising expenses, and ensuring timely deliveries. It can adapt to disruptions and manage risks.
7. **Inventory Management**: GenAI transforms inventory management by forecasting demand through analysis of historical sales data, market trends, and customer reviews. This helps in optimizing inventory levels. GenAI can also generate negotiation strategies with suppliers based on past data and market conditions.

However, there are challenges associated with the use of GenAI:

-    **Content Verification**: The source of GenAI-generated content might not always be verifiable, leading to potential plagiarism and legal risks.

-    **Bias and Discrimination**: GenAI systems might inherit biases, which could lead to unfair or discriminatory outcomes.

-    **Data Privacy**: Retailers must handle customer data responsibly to comply with security, data protection, and privacy laws.

It is crucial for retailers to adopt a human-centric approach when employing GenAI, beginning with small-scale applications to understand its functionalities before expanding to high-stakes business operations.

Beyond the hype, what retailers can do with AI 

What: Saks’ quarterly online survey of luxury customers’ attitudes revealed that luxury consumers are looking to save more, travel more, and spend less on luxury goods.

Why it is important: The results of the survey confirm a slowdown in the US luxury market as concerns begin to rise over the economy.

Luxury consumers are prioritizing saving and travel over spending on luxury goods, according to Saks Luxury Pulse's latest quarterly survey.

While 53% of respondents plan to spend the same or on luxury in the next three months, 47% say they will spend less.

Saks reports that 67% of respondents are optimistic about their personal financial situation.

Over half of those planning to spend less said they would be enticed by a sale or promotional event, while 82% plan to prioritize saving over the next three months.

In response to the results, Saks is taking steps to ensure that its best positioned to navigate the rest of the year. This includes optimizing its content and interactions with customers and also emphasizing its live commerce platform, Saks Live, to drive customer engagement.

Spending on luxury goods decelerating

What: Harrods has become the Florentine fragrance company’s first UK department store partner.

Why it is important: There are very few independent brands that are not in department stores and the partnership demonstrates the opportunity department stores present in increasing brand awareness for independent brands.

Santa Maria Novella operates two stores in London however entering Harrods will reinforce its retail presence in London and increase brand awareness.

Because the department store is a symbol of London, not only will the brand gain exposure to international clients who visit, but it will also reinforce its positioning as customers know they will find the most premium and best brands in Harrods.

The brand will be located on the ground floor in the store’s beauty department and offers more than 600 different products, including skin care, soaps, candles, fragrances, and more.

Santa Maria Novella partners with Harrods on first UK department store expansion

What: In recent years, AI-driven inventory tracking has become increasingly sophisticated and popular, offering businesses the ability to form more accurate forecasts based on variables such as historical and current sales, price fluctuations, order quantity, seasonality, promotions, product launches, and even market outliers like natural disasters and pandemics. In addition to AI, technologies like RFID (radio frequency identification) are being used to provide real-time location tracking of inventory items.

Why it is important: These technologies have the potential to make inventory management much more efficient, reducing waste and helping businesses to grow in a more sustainable way. However, as discussed during the IADS Supply Chain Meeting, there is no consensus among IADS members.

Companies such as Fuse Inventory and Sparkbox.AI offer AI-driven inventory management solutions that help companies make more informed decisions about how much inventory they need and where to sell it. Fuse has seen great success with consumer packaged goods brands, particularly in the beauty and cosmetics industry. Sparkbox.AI, on the other hand, is targeting the fashion industry, aiming to overcome the challenges associated with managing inventory in this sector due to the quickly changing nature of fashion trends and the complexities of different sizes, colours and styles.

American Eagle Outfitters, for example, has partnered with startup Radar to install RFID sensors and tags on apparel in 500 of its stores, enabling them to know how much of a certain item is in stock, and exactly where it is.

How AI and RFID are helping retailers right-size inventory

What: Chanel is set to open two VIP salons in two key luxury retail markets in Southern China.

Why it is important: Luxury brands are adopting a VIP-first retail strategy to attract big spenders as the Chinese luxury market is expected to be driven by the top 2% of luxury spenders.

Chanel is launching two VIP salons in Guangzhou and Shenzhen, giving the French house a total of five VIP salons in the China market.

The Guangzhou salon, located in Taikoo Hui Guangzhou will span 3,200 square feet and features a discreet façade with a black and white entrance. The invite-only space has four private fitting rooms and a public lounge area.

In Shenzhen, the VIP salon spans 4,300 square feet and is attached to Chanel’s first retail outpost in the city at MixC.

Chanel’s efforts to attract big spenders helped the brand boost 2022 revenues in the Asia Pacific region by 14.3% to USD 8.65 billion, with a double-digit increase in the mainland China market.

Chanel to roll out VIP salons in key Chinese cities