What: The luxury market is expected to see a sharp slowdown in Latin America this year as inflation and slow economic growth hit sales of high-end products.

Why it is important: Mexico is expected to continue to lead the region, with multiple global luxury brands entering the market and opening new stores.

Mexico is expected to gain 10% as a result of its strong tourism industry and rising Chinese foreign direct investment (FDI) which will bolster employment and consumption. With the US imposing restrictions on China’s imports, many firms are investing in border-town factories to service the market.

Additionally, brands such as Fendi and Dolce & Gabbana have opened new flagship stores in Mexico, stating that the Mexican market has grown both qualitatively and quantitatively in recent years.

Business is not looking as positive in the rest of Latin America, as Brazil’s growth is forecast to increase by only 3% until 2025 and retail sales only rose 1% in 2022. Luxury brands in Argentina have been struggling for years and all the top brands have exited the country.

Premium labels are selling well in Colombia as the US dollar is currently strong against the peso, encouraging foreign investment and tourism. However, the luxury market won’t be able to sutain that growth for much longer as import taxes are increasing and wealthy Colombians shop internationally.

Latin America’s luxury sales drop after two-year boom

What: Chinese authorities are introducing their own green certification for textiles with 26 companies currently taking part in the project.

Why it is important: The stakes are high as the Chinese textile industry generates 70% of the fibers produced worldwide and the EU, its largest customer will soon require product traceability information.

The Ministry of Industry and Information Technology has indicated that it’s working on the implementation of this future certification tool which would help reduce the industry’s carbon emissions.

The ministry stated that it will coordinate and support industry federations, high-value brand owners, and manufacturers to connect and participate in the improvement of the platform to promote it within the industry.

While no timetable for the deployment of the platform has yet been communicated, the move towards greater traceability comes at time when the EU will soon require importers to have dematerialized access to product traceability information.

In 2022, China exported EUR 43.2 billion worth of textiles and clothing to the European Union which is its largest customer.

Reborn, the future Chinese platform for sustainable textile certification

What: L’Institut Français de la Mode’s (IFM) report details the disparities among different fashion retailers in France for the month of March.

Why it is important: The strongest growth in March was attributable to department stores and popular stores with a 4.8% increase.

While the level of sales of all fashion retailers remained stable in March 2023 compared to March 2022, some retailers saw more success than others.

In addition to department stores and popular stores, mass-market chains also saw an increase of 1.6% in sales as well as multi-brand independents with a slight increase of 0.3%.

Specialized chains saw a 0.8% decrease while the fashion departments of hyper-supermarkets saw the sharpest decline with a decrease of 9.4% in sales.

The textile-clothing market as a whole remained in line with the March 2022 level of activity. However, by pre-pandemic standards, sales in March 2023 were significantly down, seeing a decrease of 10.2% in comparison to March 2019.

The balance sheet for the first quarter of 2023 shows an increase in activity of 5.6% compared to Q1 in 2022.

French department stores celebrate and supermarkets lag behind in March

What: US retail sales rose 4.7% year over year in March, with purchases largely shifting to necessities and experiences.

Why it is important: While consumers were still spending, the year ahead is expected to be bumpy as the pace slowed in comparison to previous months and sales gains shrink as the year progresses.

E-commerce sales were up 13%, in-store sales were up 2.8%, lodging rose 23.5%, restaurants rose 11.6%, and sales at groceries advanced 5.6% according to Mastercard. Home improvement, furniture, and electronics continued to see a decrease in year-over-year growth.

The NRF has forecast that retail sales will grow between 4 and 6% this year for a total between USD 5.13 trillion and USD 5.23 trillion which would be slower than last year’s 7% growth, but still above the pre-pandemic average of 3.6%.

The chief economist for NRF stated that this year’s retail forecast was among the most difficult to prepare, as the economic environment in the US is anything but normal with historically low unemployment rates, consumers having excess savings, and the banking and financial markets being unsettled.

Consumer spending holding up but fragile 

What: Saks has expanded its top client invite only program to include more experiences and unique merchandise.

Why it is important: Saks is finding ways to build and strengthen relationships with their most important customers.

As the largest luxury e-commerce platform in the US, Saks is committed to serving its most loyal customers and luxury consumers, which are part of their long-term strategy.

The online retailer is bringing the Saks experience to life in unique ways that are relevant to their top clients’ lifestyles through events such as their weekend getaway in Aspen and pop-up experience in Dallas with exclusive merchandise.

Through the program, Saks can offer experiences and highly personalized services to its top clients to build deeper relationships and provide members with the best in luxury fashion.

Saks expands Saks Limitless Program

What: Macy’s modernization strategies have received approval from J.P. Morgan’s managing director of equity research and retailing.

Why it is important: The department store group’s succession plan and rebranding are going over well on Wall Street with Macy’s stock price up 7.5 to USD 18.78 and an overweight rating, suggesting the stock price should perform better in the future.

The managing director reported clear confidence in Macy’s FY23 top/bottom-line plan, foundational change, and a clean balance sheet with no material debt maturities until 2027.

Macy’s has also rebranded its website, logo, and ticker symbol as part of its modernization strategy, moving the department store’s signature star from the apostrophe to the lowercase ‘i’ and the stock ticker symbol now featuring a small star on the top left side of the ‘m.’

J.P. Morgan upgrades Macy’s Inc. 

What: Apple is moving into banking services through partnerships with third parties.

Why it is important: Who controls customers’ means of payments influence their future purchases.

In the US, Apple and Goldman Sachs have partnered to offer a new savings account with a 4.15% annual interest rate, over 10 times the national average rate of 0.37%. This move aims to attract US depositors and outperforms competitors like American Express and Goldman's Marcus brand.

The account is available to Apple credit card users and requires no fees or minimum deposit, with a maximum balance of $250,000. As Apple expands its financial services, some speculate that it is becoming a bank, but its focus remains on hardware sales and non-banking services, leveraging partnerships with institutions like Goldman Sachs.

Apple teams up with Goldman Sachs to offer saving accounts in the US 

What: Some Japanese department stores are starting to reap the fruits of their efforts when it comes to cost-cutting and rationalisation.

Why it is important:  Japan is a market where department stores started to feel the pinch years ago. The fact that they are able to turnaround is a sign that the format remains relevant in the country.

Three major Japanese department store operators, Takashimaya Co., J. Front Retailing Co., and Matsuya Co., reported significant increases in net profits for the fiscal year through February, as customer traffic rebounded following the easing of the COVID-19 pandemic.

Takashimaya's profit rose 5.2-fold to ¥27.8 billion, driven by luxury brand goods sales and cost-cutting efforts.

J. Front Retailing, operating Daimaru and Matsuzakaya stores, saw a 3.3-fold increase in profits to ¥14.2 billion, while Matsuya Co. experienced a 4.3-fold profit surge due to high-end goods spending by foreign tourists.

However, Sogo & Seibu Co., a Seven & i Holdings subsidiary, reported a fourth consecutive year of net loss, impacted by store renovation costs.

Industry executives anticipate a rise in customers from mainland China following the relaxation of Japan's pandemic-related border controls, but J. Front Retailing's president urged caution in overestimating the current situation.

Japanese department stores are increasing their profits 

What:  A plan has been approved and should give the new CEO more freedom to transform the company

Why it is important:  Creditors are giving away 98% of the debt of the company, and half of the stores will close.

Galeria Karstadt Kaufhof's rescue plan has been approved by its creditors, bringing the German department store chain closer to safety.

The plan involves a major downsizing, with the closure of around 50 stores and creditors agreeing to drop an estimated 98% of their outstanding claims.

Under the leadership of its new Belgian CEO, Olivier van den Bossche, the company will focus on promising locations, rapid store conversion, digital investments, efficient processes, and localization.

The Belgian subsidiary, Inno, is not impacted by this plan as it has been profitable and not involved in the financial troubles. With the approval, the CEO now has more leeway to steer the company towards a positive future.

Galeria Kaufhof Kardstadt is getting out of trouble 

What: ChatGPT is already used in a very practical way by some retailers in specific use cases.

Why it is important:  It might be a solution for any retailer looking at fine-tuning its economic business model and grapple some productivity points here and there.

ChatGPT can revolutionize retail in various ways, including:

-    Writing product descriptions: By inputting product information, ChatGPT can generate multiple product descriptions, speeding up listing processes for retailers like Snipes and Shopify. Human intervention is still required for editing and quality assurance.

-    Providing real-time shopping assistance: OpenAI has partnered with companies like Instacart and Shopify to create chatbots that assist customers with recipe suggestions and shopping based on dietary restrictions.

-    Managing inventory: ChatGPT can analyze sales data and forecast demand, helping retailers optimize their inventory management. Some companies, like Night Shift Brewing and Coca-Cola, have even incorporated AI into their marketing campaigns to showcase their innovative use of technology.

The ChatGPT current use cases in retail

What: Tiffany & Co. is reopening the doors to its most famous location, now called the Landmark, revealing a major facelift and the first full view of LVMH’s vision for the brand.

Why it is important: The Landmark is one of the largest single-brand luxury stores in the world across accessories, apparel, and jewelry and LVMH’s most expensive single-brand real estate investment ever made by LVMH.

Spanning 110,000 square feet, the store is not only the largest jewelry store, but is also a cultural destination. Prior to its renovation, the Fifth Avenue store was New York City’s fifth-largest tourist attraction and was at one point the world’s top-grossing single-brand luxury store.

While the brand has declined to reveal how much they spent on the store, it’s estimated to be well into the nine-figure range. The store is expected to receive more than 2 million visitors annually.

LVMH started with a clean state as the store had already been empty for two years, leaving the architect, Marino, with the opportunity to change everything. Inspired by the frivolity of the jewelry world and how it was portrayed in “Breakfast at Tiffany’s”,  he wanted to create a bright new world, remove the intimidating factor, and make the experience of buying jewelry fun and cheerful.

Previously having an Old New York feel, the store is now more representative of today’s world, with gold, glitz and pinkish baselines giving a more homey and warm feel. With eight floors, a spiral staircase helps create consistency and carry shoppers throughout the store with mirrored walls along the way.

The first floor has been labeled “The World of Tiffany” featuring floor to ceiling archways filled with CGI footage of Manhattan instead of windows, mega diamonds on display, and an assortment of jewelry from the brand’s most popular collections.

On the third level, visitors can find the love and engagement floor, which features a central corridor of case lines in rose gold and copper tones. Private shopping rooms can also be found in this department with mirrors covering the walls and ceilings. Taking inspiration from Warhol, the ceiling has aluminum foil glued to it, which Marino said felt like a very Audrey Hepburn thing to do.

Many of the elements of the Landmark were designed to be interactive to attract and capture the new generation of shoppers. On the fifth floor, shoppers can find “The Audrey Experience” which offers an immersive experience into “Breakfast at Tiffany’s.”

The store also features a breakout room for Elsa Peretti jewelry and a stand-alone salon for Paloma Picasso on the fourth floor, emphasizing Tiffany’s history of working with global artists.

Guests can enjoy a new iteration of the Tiffany Blue Box Café and the “Diamond on the Roof” three-story addition that will serve as the center for brand history activations. The eighth and ninth floors of the building will be used as special exhibition space.

The store arrives at a pivotal time as jewelry and specifically high jewelry are experiencing the highest relevancy in nearly two centuries. It is also expected to bring even more success to Tiffany’s as the company’s high jewelry sales doubled last year.

LVMH unveils Tiffany’s renovated Fifth Avenue flagship

What: The retailer launched its Worn Again event to encourage customers to rethink their wardrobes and extend the life of their favorite things.

Why it is important: The initiative highlights old products rather than new ones, urging customers to shop secondhand, embrace repairs, and upcycle.

In September 2022, Selfridges accelerated its net-zero carbon-emissions goal, moving the deadline up to 2040 from 2050 as a promise to the Climate Pledge. The department store also set a target of ensuring that at least 45% of its transactions come from recycled products or circular services by 2030.

The Worn Again event will run for three months online and at its London, Birmingham, and Manchester stores.

There will be Swap Shops, a charity sale, and a “stock market” where items can be valued, traded, repaired, or upcycled. Customers will also be able to book services for repairs and customizations.

Selfridges will also be launching subscription and rent-to-buy services, welcoming the pre-owned furniture marketplace, Vinterior, as well as expanding its partnership with OOTO London, a luxury vintage clothing store.

Selfridges celebrates circularity with storewide event 

What: Amazon is nudging customer decisions by asking them to pay when they decide to return through less financially interesting partners such as UPS.

Why it is important: Such an approach makes sense for department stores as it could help them significantly nudge customers in favour of omnichannel in-store returns.

Amazon is reportedly charging customers a fee for returning products to UPS Stores when they could have used a Whole Foods, Kohl’s, or Amazon Fresh location within the same distance or closer.

The new fee aims to cover the cost of returns. Retailers and brands across various product categories are reevaluating their return policies due to rising costs. Some brands are charging return or restocking fees, shortening return windows, or using virtual try-on technology to reduce returns.

In the US, 96% of shoppers review return policies before making a purchase, highlighting the importance of these policies for customer decisions.

Amazon is charging new fees on some returns 

What: Amazon reported USD 127.4 billion in revenue and USD 3.2 billion in income for the first quarter, pushing shares up 10%.

Why it is important: The retailer’s cost-cutting is paying off as its first quarter results beat analysts’ estimates.

While revenue increasing by 9% compared to last year may be a sign that the company is on track for a strong comeback, it doesn’t make up for the growth that the e-tail giant is used to seeing as it reported a net loss of USD 3.8 billion in the first quarter of 2022.

Analysts estimated a revenue of USD 124.55 billion in revenue and earnings of 21 cents.

Amazon Web Services saw slow growth, reporting 16% growth for a total of USD 21.4 billion.

Machine learning investments are also driving growth in Amazon’s ad business, which saw revenue increase by 23% to USD 9.51 billion. With the application of AI, customers are seeing relevant information when they engage with the retailer, resulting in strong results for brands.

The retailer is continuing to lay off thousands of workers to improve its bottom line, with a total of 27,000 layoffs since January.

Amazon’s cost cutting-fueled comeback is underway

What: Grey market resellers are increasing their cross-border shopping services as significant price gaps remain and pandemic-era travel restrictions come to an end.

Why it is important: The health of the daigou trade is a revealing indicator to how the luxury Chinese market is recovering during its reopening phase.

During the pandemic, travel restrictions put a pause a halt to much of the daigou trade, as reseller had to use mail services instead of personally carrying products. This resulted in increased costs and decreased margins which led to many resellers leaving the market.

Now, with international travel reopening, there are signs that the overseas trade could be making a big comeback. Daigou ads on WeChat and Taobao have increased and are running in great numbers.

Major luxury brands will be monitoring the daigou trade as the results affect their performance in the China market.

In 2019, the annual daigou trade was estimated to have reached around USD 57 billion, an impressive amount considering luxury sales in China were worth USD 60 billion in 2021.

95% of South Korean duty-free sales were from daigou when China’s borders were shut and last year, duty-free sales remained at approximately 70% of 2019 levels despite visits being 90% lower than in 2019, implying that daigou traders contributed to the volumes.

The daigou trade can be controversial as it can be damaging to a brand’s image but also generate huge sales.

While the brand ultimately profits from the original daigou purchase, brands’ reputations can be damaged as consumers become informed of the price gap. Additionally, it gives the brands less control of how they are presented in the market and also gives them less access to customer data. On the other hand, the trade is a way to assess popularity and market opportunity./nbsp]

According to Morgan Stanley, a Louis Vuitton handbag in China was 34% more expensive than in Europe, while a Gucci handbag was 42% more and a Moncler down-jacket was 57%. Bain also found a price gap range of 25 to 45 percent between China and Europe in the luxury leather goods segment.

Now that travel has returned for Chinese consumers, shopping overseas has also resumed in nearby destinations. Though it’s unclear what proportion of duty-free sales come from daigou, pent-up demand for travel has made all consumers aware of the current price gaps.

As the retail landscape has changed, the daigou trade has been challenged. Brands have invested more in the mainland experience and cross-border e-commerce, narrowing the space for daigou resellers as the advantage of getting a product immediately can offset the mild price gap. Speed of delivery is also no longer an advantage of daigou as brands can store cross-border inventory in a free trade zone warehouse.

Chinese authorities have issued directives to crack down on daigou activity in Hainan and elsewhere but have been unclear on how controls would be implemented. Sales on the island are expected to reach USD 47 billion by 2025 which also the year the entire island’s retail sector will become duty-free.

Luxury braces for the return of the “Daigou”

What: Retailers are facing the end of cheap loans as central banks around the globe are increasing interest rates as they fight the highest inflation in four decades.

Why it is important: Higher interest rates are forcing retailers to make tough decisions on what projects to pursue and where to make cuts.

In the US, the Federal Reserve set its benchmark rate at 4.75% to 5%, a level not seen since 2006, and in the UK, the Bank of England has increased its interest rates to 4.25%.

For consumers, this means less discretionary spending as mortgages are higher and interest rates on credit card balances increase. Retailers are already feeling the pain from this change in consumer behavior, in addition to facing the impact of higher rates themselves.

Debt payments are now a much bigger factor when deciding to open a new store, launch a new advertising campaign, or enter a new market as retailers will either have to scale back their plans or compensate for the high interest payments elsewhere.

An analyst from investment bank William Blair stated that it’s all about capital allocation, as running a levered balance sheet with debt frees up capital to invest, but when debt costs more, the upside isn’t there.

It’s critical for companies who have debt that is due in the near term to assess and understand the needs of the business as they have two main options: refinance at a higher rate or pay down as much as possible. Allocating free cash flow towards debt means less money to go towards growth and improvements, while refinancing can protect cash flow to fund investments which could result in higher returns. Borrowing more is also an option, especially for an urgent problem or can’t-miss opportunity.

Other alternatives to using cash to pay down a loan are debt-for-equity trade, restrictive covenants, or tying favorable loan terms to business performance.

Preserving cash in an economic downturn is critical. One way to increase cash flow is through reducing the amount of inventory commitment. Even a small inventory reduction, 5% or less, can result in saving tens or hundreds of millions of dollars.

Most importantly, retailers need to drive profitability while keeping operations as efficient as possible, as being a good performer makes the questions regarding financing easier to solve.

How retailers can navigate rising borrowing costs

What: Visits to physical stores in Mexico increased by 14% during the first quarter of 2023 compared to last year.

Why it is important: The increase is the first since the pandemic and a great achievement for stores given current economic pressures.

Despite the first quarter of the year being a difficult sales period, shoppers who visited stores opted for more valuable items than last year as the number of  completed transactions remained the same but the average ticket purchase ticket increased 14% in comparison to last year.

By region, the Northeast of the country was the best performer in terms of sales growth, with a 24% increase in revenue compared to the first quarter of 2022.

By sector, the fashion division experienced the highest growth in views with a 27% increase and an 11% increase in sales when compared to the previous year.

Double-digit increase in traffic in physical stores in Mexico

What: H&M Beauty is set to open two 3,230-square-foot beauty locations in Oslo in May.

Why it is important: The locations signify the launch of H&M Beauty and could each generate an estimated EUR 2.5 million to EUR 3.5 million in yearly sales.

Both locations have about two more times floorspace than the retailers current beauty departments and will carry H&M-branded beauty products in addition to more than 80 external beauty brands, featuring Scandinavian beauty labels and some brands that are exclusive to Norway.

The retailer is wanting to build credibility within the beauty industry, with the ultimate goal being that customers can shop their entire look at H&M.

Making sure they have an elevated look and feel in everything they do, the retailer has introduced a new logotype and is reworking all its aesthetics. The in-house design team has created a space that is integrated with fashion but feels like a beauty space.

Entering the stores, shoppers are greeted by an inspiration table where the coolest products are displayed alongside the latest fashion. In the first room, more prestigious beauty labels are given prominent retail spaces to create their own brand universe. Further in, smaller brands have their own shelves lining categorized zones.

Taking inspiration from a cocktail bar and spa environment, the beauty bar features merchandising units with curved tubes and vibrant colors where shoppers can interact, get nail, lash and brow services, and experience a mask bar.

H&M Beauty opening first global flagships in Oslo

What: Despite a shaky year, John Lewis sales rose by GBP 16 million in comparison to 2021.

Why it is important: The change in senior management in its fashion division has helped the category steer clear of the group’s overall troubles.

With a strong new team, fashion sales at the retailer increased by 13.7% in the 2022 fiscal year. The team has streamlined in-house ranges and branded collections to offer customers a new assortment and a reason to buy something new. The retailer launched 251 brands in the last fiscal year with 109 being in the fashion category.

The retailer is trying to move away from the idea of customers coming to them just for basics by giving their in-house brands their own design handwriting. Additionally, they are responding to the changing needs of customers with a big focus on seasonal events and tailoring.

The men’s fashion category was its most successful category, seeing a 20% increase in comparison to last year, followed by a 17% increase in womenswear.

Fashion sales soar at John Lewis despite the company’s losses

What: China’s luxury retail is off to an excellent start this year as the main luxury conglomerate saw success in the country in their first quarter results.

Why it is important: According to PwC, China’s luxury market will account for more than 25% of the global market and is set to reach USD 118.3 billion by 2025.

LVMH saw double digit growth its fashion and leather goods division in the Chinese market with business in mainland China remaining a key focus for the brand.

Hermès sees momentum in China with sales in Asia increasing by 23% in the first quarter.

At Brunello Cucinelli, revenues in Asia grew 56% in Q1, with expectations of a positive year ahead in the Chinese market as the country represented 12% of sales in 2022.

Kering is holding several events in China to boost its presence and Cartier has also been hosting major exhibitions to educate the audience while also selling big ticket items.

According to Bain & Co., China is estimated to return to 2021 sales levels between the first and second half of 2023.

As China aims to keep spending within the country, Hainan, a duty-free island, is growing in importance with major luxury players already setting up their retail presence through wholesale channels.

High-net-worth individuals are ready to engage with new categories such as fashion jewelry and homeware as they look towards revenge spending post-pandemic.

Brands are focusing on clienteling to attract customers, including exclusive events and trunk shows to make clients feel appreciated and unique. Pop-ups have also been successful in testing new locations, and childrenswear is becoming the category with the fastest growth in the market.

Will 2023 be another ‘Golden Year’ for luxury retail in China?

What: In February, retail sales in Germany fell by 1.3% and nominal 0.5% in comparison to January according to the Federal Statistical Office.

Why it is important: Analysts were surprised by the development as a 0.5% increase was expected.

Compared to February 2022, real sales fell by 7.1% and the industry reported a nominal increase of 2.6%. Due to high inflation and sharp price increases, German consumers’ purchasing power has been reduced.

Germany: retail sales are lower

What: February retail sales in Hong Kong grew 31.3% to HKD 33.1 billion (USD 4.22 billion).

Why it is important: This is the biggest percentage rise in 13 years, a result of economic sentiment improving, visitors returning, and low figures earlier in the year.

As tourists continue to return and private consumption recovers, the retail sector in Hong Kong will continue to benefit.

Tourists’ arrival in Hong Kong in February increased nearly 557 times from the year earlier to 1.46 million, exceeding 1 million visitors for the first time in 3 years. Among visitors, mainland visitors jumped to about 1.1 million in February from 280,525 in January.

Jewellery, watches, clocks, and valuable gift sales, which were mostly to tourists from mainland China before the pandemic, were up 128.6% from 2022.

In volume terms, retail sales increased 26.9% from last year. Sales of clothing, footwear, and accessories in February grew 104.1% on the year after a 15.6% increase in January. On the contrary, online sales were down 4.1% year-on-year in value terms, compared with a 3.4% drop in January.

In January, retail sales increased 6.9% to HKD 36.2 billion and sales volume grew 5.1% in comparison to 2022.

Hong Kong monthly retail sales post biggest growth in 13 years

What: The continued use of plastic throughout the retailing and distribution process is adding to fashion’s waste problem.

Why it is important: While retailers are making greater sustainability efforts, the plastic problem in retail persists as there is no clear way to eliminate plastic from the retail system.

From mailers, hangers, to pallet wraps, polybags, tags, and more, retail uses a large amount of plastic.

In Europe, 18 countries have banned single-use plastic bags, while there are several US states with similar laws, in the US, 100 billion single-use plastic shopping bags are used each year in addition to billions of hangers and plastic polybags. Globally, less than 14% of all plastic packaging used is recycled.

While greater efforts towards sustainability are being made, there is no clear way to eliminate plastic from retail in the near term as the current plastic solutions are convenient and cost-effective and every major retailer requires individual bagging.

Some businesses have turned to biodegradable polybags but still run into issues with complying to shipping requirements from bigger companies such as using plastic hangers or buying specific mailers.

Nordstrom is one of the retailers finding solutions on how to handle its plastic waste with a goal to reduce single-use plastic in its value chain by 50%. In 2022, the company replaced its Nordstrom Rack plastic shopping bags with paper bags, reducing its plastic use by 853 tons. The department store group also sourced half of its new bags from a domestic supplier to reduce carbon emissions.

Through its BeautyCycle program, Nordstrom has reported 25 tons of beauty products being recycled. Additionally, the retailer trains employees on packaging reduction efforts and also has a hanger reuptake program. Despite these widespread efforts, the retailer still relies on polybags and requires brands to send items in individual bags.

Innovation may be necessary in order for retailers to reach their plastic reduction goals and reduce their plastic reliance as there are no scalable solutions.

One potential outlet for retailer and brand plastics is companies like Trex, a billion-dollar company who pays retailers for their trash and then uses the postconsumer waste to make its products. This is a win-win situation as the retailers get paid for recycling but also don’t have to pay for their waste.

Inside retail’s plastic bag problem – and efforts to curb it 

What: The former subsidiary of Finnish Stockmann department store in Russia, now fully independent, is planning to open 16 new stores this year.

Why it is important:  This is a perfect case of potentially dangerous PR case in terms of media exposure, as general public might not be aware that Stockmann in Finland is not related to the Russia operations anymore.

Stockmann Russia plans to open 16 new department stores across the country in 2023, capitalizing on the availability of high-quality real estate left vacant by foreign companies after Russia's invasion of Ukraine.

CEO Gennady Levkin revealed that the expansion will include cities such as Moscow, Sochi, St. Petersburg, Krasnoyarsk, and Perm, with a total investment of approximately RUB3 billion ($36.7 million).

Despite past political turmoil, Stockmann has remained a symbol of Russia's embrace of the West since opening its first store outside Finland in Moscow in 1989. Originally founded in Helsinki, the company now has 12 locations in Russia, primarily in Moscow and Saint Petersburg, and is owned by Reviva Holdings.

Stockmann Russia plans 16 new stores in 2023