What: Falabella placed ninth in the Merco Responsibility ESG Chile ranking, improving three places from last year.

Why it is important: The list highlights the most responsible companies in regard to the environment, employees, clients, and society at a technical and governance level.

The company launched its sustainability strategy one year ago and has four pillars that the operation is built on: the Verde+ initiative, commitment to innovation in the business model , local development, and talent and agile culture.

The retailer stated that it incorporates sustainability into its business model by creating actions that add value to its different stakeholders. This can be seen through the company’s initiatives such as Taller F and Feria Trueque which give clothes a second life and Talento Local which generates space for collaboration within the community through education and cultural initiatives.

Falabella Retail debuts in the top 10 of the Merco ESG Chile ranking

What: The furniture and homewares retailer has partnered with Lane Crawford to open its first pop-ups in Greater China.

Why it is important: The pop-ups are the designer’s first venture into China and the installations extend Lane Crawford’s lifestyle category with an infusion of modern ideas.

Three pop-ups will be open until May 8, with two locations in Hong Kong and one in Shanghai.

The installations include furniture and home decor, including the brand’s bedroom products and local furniture classics, with all items reflecting the workmanship, innovation, legacy, and sustainability of The Conran Shop.

Lane Crawford stated that they are always looking for exciting partnerships and The Conran Shop is an embodiment of visual beauty and practicality.

Is showrooming an option for retail? 

What: Ikea considers the US as a strategic market for their development.

Why it is important: The company has been extremely active on all continents, actively testing many different formats, as we continuously reported. The US iteration will certainly come with innovations once again.

IKEA is set to invest $2.2 billion in the U.S. market over the next three years, opening eight new stores and expanding its fulfillment network.

This move, which will create 2,000 jobs, defies the store-closing trend seen among other big retailers. According to IKEA US CEO Javier Quinones, the U.S. is a priority market and offers great potential for growth.

The company plans to open large-format stores, nine Plan & Order locations for design consultations, and 900 new pickup points for online orders. IKEA will also invest in digital innovations and improve fulfillment capabilities for its existing stores.

Despite predictions of a wave of store closures in the home furnishing sector, IKEA remains confident in its growth strategy, focusing on an omnichannel approach that combines physical and online retail experiences.

Ikea plans massive investments in the US 

What: Stores are key in Walmart’s e-commerce penetration strategy.

Why it is important:  Automation is key to make the most of real estate assets and make sure they contribute to e-commerce profitability.

At Walmart's annual investors meeting, executives highlighted the importance of their brick-and-mortar network, which is within 10 miles of 90% of the U.S. population.

While the retail giant is focusing on e-commerce growth, its physical stores remain crucial to its success. Walmart U.S. CEO John Furner emphasized the stores' role in the company's omnichannel operation, stating that their proximity to customers reduces delivery time and costs.

Over the next five years, almost 90% of Walmart's capital expenditures will go toward high-return areas like e-commerce, supply chain, and store investments. By the end of fiscal year 2026, the company expects 65% of its stores to have automation capabilities, and 55% of fulfillment center volume to move through automated facilities.

Walmart also plans to continue investing in technologies that improve efficiency and reduce labor demands.

Walmart bets on wide-scale automation for e-commerce 

What: Ikea is launching a virtual experiment able to show all the retailer’s product catalogue.

Why it is important: 10,000 products are visible in real size 3D as well as 60 room settings. Clicking on a monitor gives shoppers access to prices. QR codes give access to the Ikea website.

In Paris, a full Ikea store within 9 square-meters?

What: The luxury retailer is opening a new store in Bolzano, Italy that combines retail and fine dining.

Why it is important: Franz Kaler has partnered with fine dining destination, Meta, proving its commitment to experiential shopping.

The company is relocating its Bolzano store to a bigger space inside the Palais Campofranco, a 14th century estate that already serves as a shopping destination.

The all-white space covers 1,614 square feet, with contrasting beige carpet and arches that frame big screens for video projections. The store will carry a selection of luxury brands, including Gucci, Valentino, Fendi, and Christian Louboutin.

The retailer has also partnered with the fine dining destination, Meta, with a location on the top floor of Palais Campofranco and a Meta Suite opening on the second floor above the store.

Kraler also plans to add a Michlein-starred restaurant to its ski-slope lodge in Cortna d’Ampezzo in addition to refurbishing the location for lodging, as the 2026 Olympics will be held close by.

Franz Kaler is among a roster of multibrand stores in Italy who are redefining the wholesale business model, with 2021 sales of EUR 53.8 million.

Franz Kraler’s new store in Bolzano adds fine dining experience

What: The CEO shares the department store group’s initiatives for Milan Design Week and upcoming projects for its various branches.

Why it is important: Milan Design Week is one of the most important weeks of the year for Rinascente as the entire Milan store turns into a venue celebrating the world of design.

The department store restyled its Kartell and Vitra concessions, opened Poltronova and Klevering pop-up stores, and had Farm Rio take over the store’s Air Snake display installation for Milan Design Week. The store is also launching a new amaMI capsule collection for its Rina Shop homeware line.

Saint Laurent will be taking over Rinascente’s Duomo shop windows with a different installation for each of the store’s eight window displays.

Rinascente is revamping and renovating some of its other branches, investing EUR 28 million in its Roma Fiume store, its Turin and Florence locations to be completed next June, and the renovation of the men’s floor in Milan is set to be complete in May.

The Italian department store group closed fiscal 2022 with a total revenue just under EUR 800 million, on par with pre-pandemic levels. The Milan store accounted for over half of the total, while the Rome Tritone store generated EUR 150 million, and Florence, Turin, and Rome Fiume about EUR 50 million each.

Revenue composition has looked different in the last few years, as the share of business generated by local customers has significantly increased and tourism revenue has changed with customers from the Americas leading the ranking.

Rinascente CEO reveals Italian department store group’s new projects

What: The owner of Westfield mall chains has acquired the outstanding share of the Croyden Partnership from UK property giant Hammerson.

Why it is important: With full ownership of the property, Unibail-Rodamco-Westfield (URW) will be able to work with local stakeholders to redevelop and transform the area to meet the future needs of the community.

URW has acquired Hammerson’s 50% stake in the Croydon Partnership, which is a ten hectare parcel of land including high street retail frontage, office blocks, parking garages, as well as the Whitgift and Centrale shopping centres.

Hammerson has been selling off properties to improve its financial performance and focus on its strong core portfolio, giving URW the opportunity to transform and redevelop the area as they now have full ownership of the property.

Westfield owner confirms the purchase of Hammerson’s Croydon development stake

What: The retailer’s chair has emphasized that she will preserve what makes John Lewis unique and listening to customers’ needs.

Why it is important: The business has a deep understanding of customers’ needs as a nearly a third of the UK population shop at the retailer.

The cost of living is at the top of UK consumers’ minds, followed by concerns about the environment which is changing their habits as they look to live more sustainably while also manage their spending.

A third of consumers are only buying clothes they need, with three in ten buying fewer treats for themselves according to White.

The retailer is testing fashion rental and also offering discounts to customers who recycle unwanted clothes and used beauty packaging.

The partnership’s mantra remains ‘value within values’ which has prompted Waitrose to cut prices by GBP 100 million while staying committed to fresh food counters and high welfare standards.

The group also plans to launch a new loyalty program next year, which will provide financial benefits, special experiences, and member events and rewards that encourage customers participate in recycling schemes.

Additionally, the partnership has hired a new head of loyalty and partnered with customer loyalty and marketing experts to deepen its relationships with customers and provide more benefits.

John Lewis boss Sharon White: ‘it’s critical we listen and act on what our customers tell us’

What: Chileans chose Falabella as the most valued brand in the multi-store category based on the annual ‘Chile3D’ study carried out by Growth For Knowledge.

Why it is important: The recognition demonstrates the retailer’s commitment to customer satisfaction through its constant product offerings and service innovation.

The study was based on 4,800 people who evaluated 312 brands in 64 categories with a focus on consumer expectations in terms of digitization and trust building, as well as other variables relevant to the brand evaluation.

Falabella Retail is the most valued brand in Chile within the multi-store category

What: Frasers Group is launching Frasers Plus, a membership program and flexible payment solution combined into one platform.

Why it is important: Frasers’ new platform will provide customers with unique access to offers across its brands and unify data in one place for the retailer.

The membership program and flexible payment solution will include all of the group’s brands, allowing customers to earn points and choose payment plans up to 36 months.

Frasers created the product through its acquisition of Studio Retail which had a proprietary and regulated flexible payment solution already established.

The platform will allow the group to better understand its consumers and keep its data in one central location.

The group stated that it would be looking to sell the platform as a white-label product to other retailers.

Frasers to launch own version of Amazon Prime with membership and flexible payments rolled into one

What: US discounters are heavily investing in their stores to make them more competitive in inflation times.

Why it is important: There is a US middle-income customers flight to these stores, which at some stage might also impact US department stores.

Dollar stores like Dollar General and Dollar Tree are remodelling their stores to cater to middle-income consumers as inflation drives demand for low-priced groceries.

Both chains are investing in freezers and coolers for groceries, with Dollar General expanding its food offering to more than 8,000 stores. Although dollar stores primarily cater to lower-income customers, middle-income consumers increasingly contribute to their grocery sales growth.

The remodelling and expansion efforts come as other retailers cut costs and close outlets, with UBS predicting that 50,000 US stores may close by 2027.

US dollar stores adapt to inflation 

What: Bloomingdale’s is searching for a new chief executive officer, but it isn’t an easy position to fill.

Why it is important: Finding someone to run an upscale department store is challenging as the industry is short on talent and leadership.

The department store’s ideal candidate would be someone with a broad background who has experience in department stores, digital and luxury, which is a rare blend.

There’s a small talent pool of highly qualified retail leaders to draw from, raising the possibility that someone from specialty retail or outside the retail industry could be the right fit for the role. Additionally, Macy’s Inc. has confirmed there’s no one inside to fill the position.

According to a source close to Macy’s Inc., the retailer needs someone who has a strong understanding of the omnichannel and upscale contemporary consumer.

A general business manager with operational skills who can expand a business, grow digital, prioritize initiatives and navigate the market in addition to having an appreciation for the brand will be the ideal candidate.

Contemplating a CEO for Bloomingdale’s

What: The Asian convenience store chain is entering 8 European countries at the time.

Why it is important: Customers will have access to new services and price points, creating an additional benchmark for department stores, especially in terms of proximity services.

7-Eleven is planning to expand into Europe, seeking experienced franchisees from retail, foodservice, or hotel industries.

Initial target markets include France, Germany, Ireland, Italy, Poland, Spain, Turkey, and the UK, with Austria and Switzerland also being considered. The Benelux countries are not part of the current plan.

This expansion follows a similar move by Canadian convenience store giant Couche-Tard, which entered a strategic partnership with Total to operate service stations outside France and potentially offer additional services along European motorways.

7-Eleven to enter Europe 

What: Showfields and Neighborhood Goods are examples of retail stores reinventing themselves through showrooming, which helps brands to develop and emerge.

Why it is important: Department stores are in need of interesting brands, often coming from the digital world, in order to attract younger customers. Such a model could prove able to bring at the same time such brands while also making sure the operation would be profitable to a certain point.

Showrooms in retail are physical spaces designed to showcase products rather than just serving as a transaction point. Showfields and Neighborhood Goods are examples of showrooms that assign spaces to brands, custom-building and designing shop-in-shops.

Showrooms provide an economical and flexible way to bring products to customers in real life, including shop-in-shops, which rent spaces to showcase products. Showrooms also benefit the brands they host, as they act as a marketing platform.

Babylist, an online marketplace and registry for baby-related products, tested the concept with two pop-up showrooms before opening its first permanent showroom in Los Angeles.

Showrooms are a cost-effective alternative to digital advertising, and more brands and marketplaces are likely to turn to showrooms for their marketing needs.

Is showrooming an option for retail? 

What: The Chilean retailer has appointed Enrique Ostalé as its new president.

Why it is important: This is a historic milestone for the company, as Ostalé will be the company’s first president outside of the owner’s family.

Ostalé will replace Carlo Solari, who led the company for nearly a decade and will now become the director of the retailer.

Previously, Ostale held the position of CEO for Walmart International and will hold his new position with Falabella from 2023 to 2026.

The company has also announced Juan Carlos Cortés as Vice President.

Falabella announces Enrique Ostalé as new president

What: The technology that exists for brands to offer customers individualized online shopping experiences is expensive and complex, leading to the slow adoption of true personalization.

Why it is important: True personalization offers retailers an opportunity to meet consumers expectations of a personalized shopping experience.

With apps like Tik Tok pushing content that keeps users glued to the app, customers today are more accustomed than ever to personalized content, except when shopping online.

While online retailers use customer data and the latest AI-empowered software to determine their inventory levels, there are few that are taking the next steps to offer individualized product recommendations and search results on their websites.

Only 20% of 100 brands and retailers in a survey said they customize product recommendations based on customer’s purchase history according to research from Manhattan Associates.

Implementing personalization in e-commerce is complicated, resulting in the slow adoption of true personalization. Algorithms that predict customers’ behavior must be built or software platforms can do the heavy lifting, but tech talent can be hard to recruit and AI-driven software platforms are costly.

Even among established brands, there aren’t many who have successfully managed to offer personalization. Retailers must fundamentally understand their customer and where they want to go before personalizing their website.

Collecting customers’ data, using surveys, and seeing how customers interact on the website are great ways to figure out customers’ preferences and make their shopping experience easier and more relevant. Some brands have seen success through offering consultation services with a customized skincare routine or a fit finder that suggests shoes that are the most likely to fit customers’ feet.

Will brands ever get product recommendations right? 

What: Weakened by Covid, but having given itself new impetus with its Italik extension opened at the end of 2021, the Italie 2 shopping mall is being taken over by the Swedish group Ingka. The Scandinavian group is also taking over the Apollo office complex located in the building.

Why it is important: This is the fourth downtown shopping hub acquired by the company, which already has a presence in the heart of London, Toronto and San Francisco.

Although still including traffic drivers Zara, Uniqlo or Sephora, Fnac and Printemps department stores left the mall. Cells that could eventually accommodate an Ikea store?

Inka acquires Parisian mall Italie 2

What: 19 Galeria stores are on strike but remain open, in order to yield on the collective negotiations affecting 4,000 employees.

Why it is important: The Verdi service union’s approach brings significant pressure on the negotiations with a retailer in a hurry to engage in closing sales, while at the same time keeping a positive image (and, by mirroring effect, putting the blame on GKK).

Employees at 19 department stores of the insolvent Galeria Karstadt Kaufhof group participated in all-day warning strikes across three German states: Hamburg, Baden-Württemberg, and Hesse. Despite the strikes, the shops remained open.

The Verdi services union called for the work stoppages in response to deadlocked collective bargaining for the approximately 17,000 employees, demanding recognition of regional retail trade agreements.

The company's restructuring plan, approved by creditors, aims to close 47 of the 129 branches nationwide, resulting in a loss of around 4,000 jobs.

Galeria Karstadt Kaufhoh stores are on strike in 3 German federal states 

What: Zalando is launching a beta version of a fashion assistant powered by ChatGPT.

Why it is important: The technology will make navigating the website easier and help customers find items that meet their specific needs.

The assistant will allow customers to ask questions in their own fashion terms and words, making the website’s large assortment easier to navigate and sort through.

Customers can ask the fashion assistant what to wear for a specific event in a specific location, and the bot will understand what the weather is like and what kind of event it is and provide a written explanation with recommendations.

In the future, this may be combined with customers’ preferences, like brands they follow and products that are available in their size to deliver a more personalized selection.

Zalando launches ChatGPT assistant in Germany, Austria, UK, and Ireland

What: Oreo goes direct and opens an experiential space.

Why it is important: Could department stores collaborate with CPG brands in order to create excitement and traffic around experiential spaces?

The first Oreo Cafe outside the US and the first in an airport has opened at Hamad International Airport (HIA) in Doha.

The cafe is a collaboration between Mondelez World Travel Retail, HIA, and Qatar Duty Free. Spanning 116 sqm, the cafe offers various Oreo-based sweet creations, such as milkshakes, muffins, and cheesecakes, and also features live sweets production at the Oreo Creations Bar.

The Oreo Cafe's design incorporates the brand's distinctive colors and includes digital walls and a retail space. Earlier this year, Oreo introduced a limited-edition cookie pack inspired by the K-pop girl group BlackPink.

Oreo opens a branded café in an airport 

What: After the success of the theatre play based on Zola’s Au Bonheur des Dames last year, Le Bon Marché will host a new experience starting September 1st 2023.

Why it is important: Department stores increasingly develop unprecedented and successful experiences.

After the success of the immersive play "Au Bonheur des Dames", Le Bon Marché invites Cirque Le Roux for a new co-production on Thursday, Friday and Saturday nights from September to December 2023.

Le Bon Marché to launch a new theatre experience

What: IA Interior Architects has released a report that shows the benefits and barriers to adopting extended reality in stores.

Why it is important: The report found that female consumers aged 55 and older could be the key to driving adoption of extended realty (XR) technology in retail, with in-store associates playing a critical role for stores promoting extended reality.

Retailers should take a moderate approach to adoption and consumption as they question whether or not an investment in reality technologies will be profitable.

The report found that 80% of 1,012 US adults had experienced a form of extended reality and 71% use it daily or weekly. Almost seven in ten respondents had made purchases in XR, mainly for gaming products. Additionally, more than half of the respondents reported previous experiences using extended reality in a physical retail environment, with 95% having positive experiences.

While teenage males are assumed to be the target demographic, IA’s report found that female consumers aged 55 and older appear to be a key driver of future adoption and are eager to learn and willing to spend as they are part of the highest income group.

To encourage the use of XR devices in a retail environment, IA advises retailers to provide in-store associates to guide consumers, ensure easy and secure payment methods, provide opportunities for groups to shop within the XR realm together, customize familiar products using XR, and supply equipment access for those with impairments.

Retailers whose products or services can be customized are the ones most suited for the metaverse. Home goods, furnishing stores, and design centers that sell larger products can use XR to their advantage to help with the design and visualization process. Soft goods still have some way to go before the metaverse becomes more than a brand awareness vehicle.

The top barriers to XR purchases in store and online are: concerns about security of personal information, lack of access or expense of technology, not having the right product or service, the inability to touch, feel, test, or try products, and difficulty or unsecure payment options.

The top motivators to make an XR purchase include: in store associates to guide customers, easier and secure payment methods, the ability to shop with groups, and accommodations for impairments.

What retailers need to know about the metaverse

What: The retailer has appointed Jason Morris chief technology and information officer.

Why it is important: Nordstrom sees opportunities to invest in new technology and continues to enhance its digital capabilities to better serve customers.

Morris will oversee the company’s technology functions, including engineering, data science, and analytics. He previously led Walmart’s global enterprise technology as senior vice president of enterprise business services and has more than 25 years of technology experience in the retail industry.

Nordstrom is rolling out radio frequency identification corporate-wide this year to better track and replenish merchandise. They have also been improving their data technologies to better understand their consumers and reflect that in their communication and services.

Nordstrom names new chief technology and information officer