What:  Shein is going around Indian regulation by making a deal with Reliance, which in turns earns the capability to both supply Shein worldwide and sell the products in India

Why it is important:  In spite of some protests against Shein, it seems that its growth cycle is not over yet.

Reliance Industries, India's largest company, is partnering with Chinese retailer Shein in an attempt to dominate India's $10 billion online domestic fashion market. This partnership comes three years after Shein was banned in India as part of a broader crackdown on Chinese companies following border clashes between the two countries.

Under the recently approved license agreement, Shein will receive a percentage of profits from its fast fashion sales in India, while Reliance will assist Shein in establishing a supply chain within India's garment industry for global exports12. The partnership could also enable Shein to shift about 25% of its sourcing to India, a significant move given that Shein currently sources 93% of its products from China.

The Shein partnership will allow Reliance to cater to younger consumers at lower price points, which is important given that many online shoppers in India are young adults from smaller cities. On the other hand, Shein is expected to benefit from access to India's online market, which is the world's third largest e-commerce market and worth an estimated $50 billion in 20221. This move comes as Shein's expansion in Europe and the US begins to slow, and the company expects its gross merchandise value to almost triple by 2025 to $80.6 billion.

In the fashion ecommerce space, Reliance lags behind Myntra, a company that merged with Walmart-backed Flipkart in 2014 and accounts for around half of the online fashion market in India. Reliance's ecommerce fashion business Ajio holds about 4% of the market share.

Reliance seeks retail dominance in India with deal for Shein 

What: A series of NFTs are launched in order to generate excitement among Hyundi customers.

Why it is important: The metaverse and web3 craze is not over, but simply morphing into lower sized operations. However, the bridge to the digital world is still important to build.

Hyundai Department Store Duty Free is leveraging NFT marketing to enhance customer interaction via novel experiences and activities. They recently created digital characters and launched online/offline pop-up stores.

The pop-up store located in the Hyundai Department Store Duty Free Trade Center exhibits and sells digital art/goods featuring the characters Newnique Traveler and Banana Noma. A special sale of 100 credit card-shaped gold bars featuring character logos is available, and customers who purchase these receive a free digital character NFT. A virtual pop-up store named 'The Lost Cosmos' has also been set up where customers can buy a range of items including gold bars and apparel.

Through these ventures, Hyundai aims to expand its sales channels via virtual spaces, offer unique experiences, and take the lead in the digital trends of the Korean duty-free market.

Hyundai Duty Free expands NDT Marketing 

What: Manor interviewed the director of the Swiss Retail Federation to discuss the current state of retail.

Why it is important: According to the director, department stores have the opportunity capitalize on the changes happening within the industry.

The start to 2023 has been bumpy, as retailers announce store closures, layoffs, and a decrease in profit. Digitization and the pandemic have changed the retail landscape, however many retailers are adapting and thriving.

While some have reported that department stores have missed the change, Dagmar disagrees with this statement. The director stated that department stores have the advantage of having everything in one place, giving them the best conditions for innovative store concepts.

With constant change, competitive pressure increasing, and customer needs being more demanding, retailers can no longer rely on traditional concepts. Dagmar suggests that to survive in the market, retailers should have excellent curation and brand selection, an atmospheric experience, and integrate digital media and elements in stores.

Retail trade – where opportunities and risks are close together

What: Cencosud’s chains, Paris and Jumbo, won first place in the “Praxis Xperience Index 2023” for delivering the best shopping experience to its customers in the Chilean market.

Why it is important: Paris was the first brand to be recognized in the department stores category of the Index.

Jumbo, the conglomerate’s supermarket chain, was ranked third place in the overall ranking and received the highest ranking for excellent experiences for the fourth time.

The conglomerate’s department store chain, Paris, marked a milestone by being the first brand to be recognized in the department stores category.

The Praxis Xperience Index is the only ranking in Chile that measures customer experience, gathering the opinions of more than 50,000 people.

Jumbo and Paris from Cencosud stand out for their shopping experience in Chile

What: The insolvency proceedings for Galeria Karstadt Kaufhof ended as a result of the decision from the Essen District Court.

Why it is important: With the end of the proceedings, a reorientation in the operative business should begin and a new CEO will take command.

Germany’s last large department store group will get a restart as a court in Essen will lift the insolvency proceedings on June 1st.

The proceedings will be cancelled after confirmation that the insolvency plan has become legally binding.

The company will focus on selling fashion items, optimize its own brands, and reduce the range of products such as toys and stationery in the future.

The remaining branches will also be completely modernized within three years and will be controlled on a more decentralized basis with a more locally adapted product range.

In order to implement the insolvency plan, Signa Group intends to provide up to EUR 200 million.

Galeria Karstadt Kaufhof ends insolvency proceedings

Galeria Karstadt Kaufhof ends insolvency proceedings WirtschaftsWoche Article

What: Amazon is increasingly trying to cancel the notion of free delivery due to logistical costs.

Why it is important: This is a blessing in disguise for other retailers as Amazon has been the one disrupter forcing the rest of the market to propose free delivery as a norm. The fact that it changes its strategy might allow other retailers to finally find the adequate solutions to make e-commerce profitable.

In the US, Amazon.com is offering customers USD 10 (about EUR 9) to pick up their orders instead of opting for home delivery. This move aligns with other retailers aiming to reduce delivery and return costs amid a challenging consumer demand slowdown.

Amazon has emailed numerous Prime subscribers, offering them USD 10 to collect their orders of USD 25 (EUR 23) or more from designated pickup points, such as Whole Foods, Amazon Fresh, or Kohl's stores. Increasing the use of Amazon pickup points could help the company avoid costly parcel deliveries and reduce delivery costs. It also trains consumers to make returns directly to the company. Amazon has started charging some customers USD 1 (EUR 0.91) fees if they return parcels through UPS pickup points when an Amazon collection or return centre is closer to their delivery address.

Amazon has taken various measures to reduce delivery costs across the company after years of promoting quick and free deliveries and returns.

Amazon subsidizes customers who accept to pick up orders instead of receiving them at home (French)

What: Frasers Group's CEO Michael Murray explains the success of the Flannels chain, targeting "new luxury, aspirational" customers, via the fast-growing 60 Flannels UK stores.

Why it is important: The article highlights how Flannels, a high-end retail chain, has succeeded in the midst of a cost-of-living crisis by targeting young, aspirational customers. This insight is valuable for retailers looking to adapt to changing consumer behaviors and preferences.

Fraser Group's CEO Michael Murray has attributed the success of the company's Flannels chain to its ability to target young, aspirational customers who are willing to spend money on luxury goods despite a cost-of-living crisis.

Flannels' success has contributed significantly to the Group's "premium lifestyle" brands, which saw revenues of just over GBP 530 million in the six months to the end of last October, up nearly 25% on the year.

Murray has targeted 18-30-year-olds, who aspire to expensive products after exposure on social media, as the Flannels' key demographic. Many of these young people are still living at home and have been sheltered from rising interest rates, rents, or high energy bills.

Murray has stated that he is reinventing the company, targeting "new luxury, aspirational" customers with the fast-growing 60 Flannels UK stores. He is looking to transform the business from a discount sports retailer to Europe's biggest, most aspirational retailer.

Frasers' CEO on the chain’s ongoing success

What: SM Investments reported a 33% growth in its net income to PHP17.3 billion in Q1 2023 driven by strong performances from its banking, property, and retail businesses.

Why it is important: The positive results of the conglomerate, which is invested in market-leading businesses in retail, banking, and property, reflect the resilience of consumer demand in the Philippines despite the challenges brought by the pandemic.

SM Investments, the country's largest conglomerate, reported a 33% increase in its consolidated net income to PHP 17.3 billion in Q1 2023, compared to PHP13.0 billion in the same period last year. The conglomerate's revenues in the January to March period rose 21% year-on-year to PHP 138.2 billion.

Meanwhile, the banking segment of the group accounted for 47% of reported net earnings from core businesses, followed by property at 26%, retail at 17%, and portfolio investments at 10%. BDO Unibank, Inc. reported a net income of PHP16.5 billion, up 41% year-on-year, while China Banking Corporation recorded a PHP5.0 billion net income for the first quarter, up 3% from the same period last year.

SM Prime Holdings, Inc. registered a consolidated net income of PHP9.4 billion, 27% higher than the PHP7.4 billion in the same period last year. SM Retail's net income grew 51% year-on-year to PHP3.9 billion, while revenues were up 22% year-on-year to PHP91.2 billion.

SM Investments Q1 net income grows 33%

What: The retailer is introducing more than 800 self-checkout tills and furthering developments to scan and pay as it looks to cut costs and make stores more efficient.

Why it is important: M&S has saved GBP 150 million in costs this year by investing in technology to increase retail efficiency.

The retailer is looking to cut costs by more than GBP 400 million over the next five years with many store initiatives including rolling out hundreds more self-service tills.

While around 70% of food sales at some stores are made through self-service checkouts or the retailer’s mobile app, M&S may face some challenges as evidence has shown that shoppers still prefer using traditional checkouts.

M&S stated that it’s monitoring customer reaction and feedback to self-checkout and stressed that traditional checkouts will still be available.

M&S to press ahead with self-service till rollout

What: Kohl’s will be focusing more on beauty, dressed up casual apparel, and gifts and pets as part of its turnaround efforts under its new CEO.

Why it is important: The retailer’s turnaround strategy is showing some progress in stabilizing the business as its bottom line stayed flat for Q1.

Net income for the quarter was USD 14 million compared to USD 14 million last year while sales decreased 3.3% to USD 3.36 billion from 3.47 billion.

Kohl’s new CEO stated that first quarter results were in line with the company’s expectations as they work towards driving sales and earnings performance over the long term.

The retailer saw a 6% reduction in inventory and its stores achieved productivity gains while Sephora at Kohl’s also continued its sales momentum

Kohl’s is making progress towards its 2023 key priorities which include enhancing customer experience, simplifying value strategies, managing inventory and expenses with discipline, and strengthening its balance sheet.

Investors were pleased with the results, as the stock price increased 7.45% to close at USD 20.72.

Beauty sales increased 150% year over year and the retailer plans on expanding Sephora to more than 900 stores by the end of the year.

Kohl’s is focusing on rebuilding its core business and growing underrepresented categories such as gifting, pet, décor, impulse, and outdoor.

In the apparel category, the retailer is adding dressier casual clothing for women and more suits and dress shirts for men.

The children’s category outperformed the company average with positive growth in active and dress clothing; similarly to men’s and women’s the retailer plans to also add more dressier options.

As for improving the shopping experience, Kohl’s is consolidating checkouts to one central location, adding self-checkout in 250 stores, and simplifying its graphics and signage for better navigation.

Kohl’s has opened two stores this year, with five more planned including one relocation.

The turnaround efforts by Kingsbury and the retailer’s new chief merchandising and digital officer are expected to be felt more in the later half of this year.

Kohl’s Corp. sees beauty, ‘dressy’ casual clothes among keys to driving turnaround

What: John Lewis Partnership has a very different capital structure, and its employees are also its shareholders.

Why it is important: The transformation plan of the company is painful and long, the Chairwoman of the company might pay the price of such issues as the partners of the company are growing discontent.

John Lewis Partnership (JLP), once a paragon of British retailing excellence, is facing challenges as its performance declines and the unique business model comes under scrutiny.

JLP Chair, Dame Sharon White, might face a secret vote of confidence due to growing concerns. Losses have increased to USD 294.6 million, leading to the appointment of the first group CEO, Nish Kankiwala, and the abandonment of staff bonuses. A controversial plan to sell a minority stake in the partnership-owned business has caused protests.

While the confidence vote is not binding, a significant rebellion could increase pressure on White. Despite this, White remains positive about the industry and insists that being purpose-led is still key. JLP is exploring new revenue streams, such as private rental apartments above its Waitrose stores, but critics argue that the company should focus on retail fundamentals.

John Lewis Chair is facing growing discontent 

What: A Kiwi store chain considers closing down in spite of faring better than expected after the Covid-19 Pandemic.

Why it is important: Investments needed in the flagship store to comply with security norms are too high for the company, which prefers shutting its doors instead.

New Zealand department store chain H&J Smith has announced plans to close its flagship store in Invercargill, along with stores in Gore and Queenstown, due to systemic changes in the retail sector that make it difficult for independent retailers to operate.

The company, which operates in a much smaller region than other independent department store brands (Ballantynes and Smith & Caughey), has already reduced its retail footprint since 2020.

Despite a better than expected recovery from the Covid-19 pandemic, the company faces challenges in procuring stock and establishing a sustainable growth model. The 12,000-sqm-wide flagship Invercargill store also requires significant investment for earthquake strengthening.

The company's proposal is open for consultation for four weeks, with a final decision due by June 23. Online trading is set to stop on July 1, and the last general trading day is scheduled for November 18.

New Zealand chain H&J Smith considers closing down activities 

What: Sharon White, Chairman of John Lewis Partnership, narrowly won the support of staff in a confidence vote.

Why it is important: While White isn’t in imminent danger of losing her job, the results indicate that she remains under pressure to improve the retailer’s performance.

The council didn’t support last year’s performance, where it reported a full-year loss and no bonus, but voted in support of the chairman to progress the partnership in relation to its purpose, principles, and rules.

John Lewis Chief survives confidence vote

What: The department store has started laying off workers in its technology operations.

Why it is important: As technology remains a critical area of business, the retailer is adjusting their team structure and eliminating certain roles to operate more efficiently and remain agile.

The layoffs follow the announcement of the company shutting down its operations in Canada which will result in 2,500 employees losing their jobs.

The company’s new chief technology officer started his position on the same day that the tech layoffs were publicly confirmed.

Nordstrom is working to improve its data technologies to deepen its understanding of customers and is also rolling out radio frequency identification corporate-wide this year.

Nordstrom makes more cuts

What: The department store has launched a stock-exchange style space that allows customers to value and exchange pre-owned items and get them repaired or upcycled.

Why it is important: The initiative demonstrates Selfridges’ commitment to retailtainment and its net-zero carbon emissions goal as it continues to provide unique experiences for its customers.

The Stock Market will run until June 10 at the department store’s key Corner Shop in its Oxford Street, London flagship.

The initiative is part of its Worn Again event which includes circular shopping experiences at three locations.

The space imitates financial stock exchanges, with data-filled trading screens, stock-exchange-style rotundas, and stockbrokers who are there to assist customers.

Customers are encouraged to discover the value of their clothes and accessories by adding value to their existing investments through repairs or upcycling or selling them for Selfridges credit instead of buying new.

Brands will also be taking part in the Stock Market providing a variety of services and a wide assortment of secondhand products. SOJO is a repair specialist where customers can drop off their items for tailoring and repair needs. At Sneakers ER’s booth, customers can have their shoes valued and sell them for store credit and have their shoes cleaned or repaired. Vintage Threads offers authentication services as well as upcycling and dyeing. Visitors can also shop for luxury bag resale, and have their bags authenticated or restored at The Handbag Clinic.

Selfridges unveils Stock Market in Corner Shop to boost experiential circularity

What: A recent report has identified new payment consumer behavior trends for the next five to seven years.

Why it is important: Businesses need to adapt to the changing needs of consumers as they become more conscious of their consumerism, value new currencies and expect heightened experiences.

The report by Mastercard Signals focuses on three major trends: reimagining money, creating intelligent experiences, and sustainable futures.

Consumers are valuing new currencies and shifting towards the usage of non-traditional assets such as cryptocurrency, digital goods, and loyalty points. Because there are issues when these exchanges are made between the physical and digital world, programmable payments and new types of tokens such as stocks and digital assets could be solutions for the future.

The report also cites connected finance as a way to create more personalized and tailored consumer experiences. Customers are using third-party financial institutions for new banking and payment solutions such as Klarna (buy now, pay later). In the future, borderless payment rails will also create intelligent experiences as they look to solve the cash flow and commerce issue of exchanging goods, services and data across geographic borders.

Societal and environmental issues will impact companies as conscious consumerism becomes increasingly popular. The implementation of environmental, social, and governance strategies will be key as consumers expect brands to change alongside them and vote with their wallets.

The future of payment: upcoming trends

What: The Partnership has named Saatchi & Saatchi as its new creative partner, with the agency developing and producing all the retail group’s brand campaigns as well as the new JLP brand loyalty program.

Why it is important: The appointment of Saacthi & Saatchi follows the Partnership naming its first Head of Loyalty as the retailer looks to further grow its brands.

Saatchi will become the lead creative agency for all JLP, John Lewis, John Lewis Financial Services, and Waitrose brand and advertising activity.

The agency will develop and produce all the retail group’s brand campaigns, including its popular Christmas campaign and new loyalty campaign.

John Lewis Partnership names Saatchi & Saatchi as new creative partner

What: The department store was found to be the cheapest UK rental platform for the ten most popular wedding guest dress brands.

Why it is important: The research shows that department stores can have a competitive advantage when it comes to rental services.

The savings site, VoucherCodes.co.uk, compared the prices of dresses from the ten most popular wedding guest brands on Selfridges Rental, Hurr, and By Rotation, finding that nine out of ten items were priced the lowest on Selfridges Rental when rented over a four-day period.

In comparison to smaller rental service platforms, retail giants are able to provide customers with the best value for their money as their business models create cost savings that are reflected in their pricing.

Selfridges named most affordable rental platform 

What: The American cosmetics group is creating Coty Campus, a digital space where employees will be able to communicate and receive awards.

Why it is important: The online platform will enable more collaboration and co-creation while also allowing the company to upskill its workforce.

Coty is the first beauty company to launch this type of project, leveraging Web3 and partnering with Spatial to create immersive experiences and interactive solutions for employees.

Each employee will have a customizable avatar and will be able to carry out traditional operations such as screen or document sharing and be informed about the group’s news and brands.

Coty also plans to set up a rewards system to encourage employees to use the new platform.

Coty launches an internal metaverse for its 11,000 employees

What: The Partnership is planning to cut more than half of its central London headquarters as employees embrace flexible working.

Why it is important: The downsize isn’t a cost-saving initiative but a result of less office space being needed as employees continue to work from home.

John Lewis Partnership to halve size of London headquarters

What: Brick-and-mortar stores remain important in the post-pandemic era as they offer many benefits that e-commerce pure players can’t match.

Why it is important: Despite the growth of e-commerce, physical retail has been proven to drive sales and customer growth.

Brick-and-mortar stores remain a vital backbone to the retail industry as they help drive customer acquisition and complement online brands.

The International Council of Shopping Centers found that if a store opened in a market, their online sales in that market would increase by 37% and if a store closed in a market, their online sales decreased by 33%. These figures prove that a physical retail space can act as a billboard for retailers because if a brand is out of sight, it’s out of mind for customers.

Having a physical presence also helps with customer acquisition costs as customers are coming in-store but also visiting the store’s website. E-commerce companies with pop-up locations have seen online growth, including one brand which saw growth of around 40% in their market.

Building the case for brick-and-mortar stores

What: John Lewis is creating a unified retail experience by focusing on what the consumer wants and knowing the strengths of each of its channels.

Why it is important: Unified retail is increasingly being adopted across the industry.

John Lewis is focused on what the customer wants and how it can be there while also figuring out the characteristics of each channel and what makes them successful.

The John Lewis app helps unify the experience and has been an increasingly important part of the department store’s offer, as it accounted for a quarter of all online sales last year.

The retailer has seen a large number of consumers using the app and then shopping in-store and is also a great way for them to communicate their message.

As a heritage retailer, the company is focusing on educating its staff as it ramps up its digital strategy and pivots as 60% of its sales come from online.

How John Lewis is moving toward unified retail

What: Both sales and profitability improved.

Why it is important: The Stockmann Group’s revenue increased by 1.2% and was EUR 198.5 million. Net result amounted to EUR 19.5 million.

Both the Lindex division and the Stockmann division strengthened sales and profitability. The adjusted operating result improved to EUR -2.4 million. The operating result was EUR -2.9 million (9.8). The gross margin decreased to 56.4%.

In 2023, Stockmann expects the Group’s revenue to be in the range of EUR 960–1 020 million and the Group’s adjusted operating result to be EUR 60–80 million. The guidance is based on the assumption that the continuing high inflation will increase costs from 2022 and have an adverse impact on consumer demand.

The department store is being transformed into a destination hub that offers customers an inspiring environment not only for shopping but for entertainment and socialising as well. Stockmann is therefore refocusing on the Helsinki flagship experience. As the first step of this journey, a new inspirational children’s section has been built in the Helsinki flagship store. Another example of ongoing strategic repositioning is an expanded range of luxury and affordable luxury brands: Louis Vuitton’s store opened in Stockmann’s Helsinki flagship store. The partnership is an important step towards the targeted position.

Stockmann Group’s 2023 Q1 sees a positive start to the year 

What: Frasers Group will be bringing Guilio, Choice, and Base Childrenswear under its Flannels umbrella.

Why it is important: The group has been on an acquisition spree, with JD brands being the latest in its string of deals.

The group acquired the three chains along with 12 others from JD Sports for GBP 47.5 million in December of 2022.

Choice and Guilio will be brought under the Flannels brand, while Base Childrenswear will be rebranded as Flannels Junior in the coming months.

Closing down sales have begun and Frasers will close the stores permanently in areas with existing Flannels outlets.

Frasers brings former JD-owned brands under Flannels umbrella