What: On the day of Christmas décor illuminations, inter-union employees of Galeries Lafayette protest for a reevaluation of their wages.

Why it is important: Following the department store’s achievement of exceeding 1 billion in sales, 500 Galeries Lafayette union workers gathered in the Boulevard Hausmann location to demand a reevaluation of wages with the intention continue the movement on Black Friday should the department store chain refuse their negotiations.

The store on Boulevard Haussmann is the spearhead of a network of 57 points of sale in France, of which 19 units are directly operated and 38 addresses run as franchises.

Inter-union workers strike in Paris department stores

What: The Louis Vuitton headquarters is set to become the host of the House’s largest store in the world along with its very first luxury hotel.

Why it is important: Louis Vuitton is planning to transform the fashion house’s historical headquarters into a massive complex that includes the first-ever Louis Vuitton hotel and the brand’s largest global storefront.

The transformation is beginning this month with the launch of a 20,000-square-foot-pop-up exhibition “LV Dream”, spotlighting top art collaborations, a café and a chocolate shop alongside a gift shop. The space is temporary, only open for a year and is the likely location of the future storefront. The hotel will occupy another sector of the 400,000-square-foot building within the next five years.

Louis Vuitton to open luxury hotel inside Paris headquarters

What: Harrods is investing heavily in destination dining through the property, having opened a handful of notable dining and drinking spots in the past year and a half.

Why it is important: Many retailers are leaning into restaurants to attract customer traffic and save high-end shopping venues, but Harrods is taking it to another level with its highest-profile dining spot Studio Frantzen, slated to open on Nov. 28 on the store’s top two floors.

The restaurant is the first UK outpost for Bjorn Frantzen, one of the few chefs in the world with two restaurants with three Michelin stars: his eponymous flagship in Stockholm and Zén in Singapore.

In 2024, Harrods will become home to Dave Pynt, another chef hailing from a Michelin-starred restaurant and owner of Singapore’s famed barbecue spot Brunt Ends.

Following Harrod’s other successful F&B initiatives, such as the inaugural Jimmy Choo Café and Europe’s first Tiffany Blue Box Café, which scored 1,100 bookings in one day, success is almost guaranteed for Studio Frantzen. In a little over 24 hours after opening reservations, Studio Frantzen logged some 1,500 bookings from all over the world, yet the restaurant maintains that walk-ins will be accepted.

Harrods restaurant sales are up 44% for the first three quarters of this year, compared to the same period in 2019.

Harrods bets big on fine dining destinations

What: The corporate offices for Louis Vuitton will add a chocolate shop and gift store while highlighting the brand collaborations with artists in the new exhibition space.

Why it is important: Louis Vuitton is adding a commercial space to their corporate office building that includes the arts and hospitality.

Dubbed the LV Dream space, the headquarters of Louis Vuitton will include a café, gift shop, a chocolate shop run by Maxime Fédéric and an exhibition space to highlight artistic collaborations of the brand. The exhibition space will be open seven days a week offering interactive experiences and a deep dive into the brand’s various partnerships.

Visits are free but must be pre-booked through the Louis Vuitton website while access to the café, chocolate confectionery and gift shop will be accessible without a reservation.

Louis Vuitton headquarters adds café and exhibition space

What: Showfields has signed a 10-year deal with EastBanc, a D.C. real estate development firm, to occupy a space in the US capitol.

Why it is important: Following the recent debut of its New York NoHo store and keeping with its unique style of retail, Showfields’ DC location will stretch across three floors with departments that resemble rooms in a typical home which the retailer plans to make more holiday-centric for the upcoming season.

Similarly to Showfields, Simon Property Group has partnered with Leap, a company that helps DTC brands transition into physical stores, to bring more digitally-native companies into malls. As part of the collaboration, the two companies are opening four stores in California and Florida.

Showfields opens location in Washington, DC

What: Frasers Group has increased its stake in N Brown, an online fashion retailer, by 5.04%.

Why it is important: One month after its initial buy-in to N Brown, Frasers has increased its stake in the online fashion retailer by 5.04%, adding to the list of companies that the group has been investing in.

N Brown’s revenues dropped 4.6% (347.4 million pounds in Q3), while its pre-tax profit dropped 82.4% to 4.3 million pounds. It joins a growing number of struggling retailers Frasers Group has bought stake in. Frasers has recently acquired Missguided, Studio Retail and ISawItFirst, while it continues to increase its stake in Hugo Boss.

Frasers Group ups stake in N Brown

What: Until 3 December, the Selfridge’s Corner Shop will host “Body Spaces”, a sculptural display celebrating the brand’s signature scents with select fashion pieces from its Mugler fall 2022 and spring 2023 collections.

Why it is important: This is the first time that Mugler has set up an immersive pop-up.

A limited number of the brand’s fragrances will be sold in chrome hues to match the silver sculptures of bodily curves that decorate the dedicated space. Existing and new customers can also refill their bottles at the fragrance fountain at the Corner Shop. Mugler stationery and playing cards will be available as festive gift options.

Selfridge’s Corner Shop welcomes first Mugler pop-up

What: Meta group has indicated that brands and creators can create and sell their NFTs directly from Instagram with the initiative initially reserved for a selection of American creators.

Why it is important: The platform is using the Polygon blockchain to provide buyers of NFTs on Instagram a gas-fee-free transaction with a positioning that is intended to rival other NFT marketplaces such as OpenSea, Magic Eden and Rarible.

Instagram will not claim any commission on NFT sales until 2024, yet these transactions will still be subject to the 30% claimed by Apple for transactions made via the App Store. It was already possible previously for creators of works to connect their NFT portfolio to Instagram in order to present their gallery there.

Instagram begins transformation into NFT marketplace

What: Germany’s biggest department store, Galeria Karstadt Kaufhof, is filing for bankruptcy protection again to save the mid-market chain.

Why it is important: For the second time in two years, René Benko, owner of Galeria Karstadt Kaufhof and co-owner of Selfridges, is filing for bankruptcy protection having already taken two bailouts from the German government worth 680 million euros.

Berlin politicians are reluctant to provide a third bailout without participation from Benko and his Signa Group.

The mid-market chain Galeria Karstadt Kaufhof first filed for creditor protection in April 2020 when the pandemic forced store closures. This time around, close to a third of jobs will be slashed as part of a planned restructuring due to overly complicated bailout terms.

Benko is facing more than scrutiny caused by the Galeria restructuring. The Signa headquarters was raided by the Austrian police in October as part of an anti-corruption investigation surrounding Benko’s political connections in Vienna and the overall financial operations of his business empire. Past criticism has insinuated that Benko’s acquisition of Galeria has been fueled by the underlying high-value real estate as it contrasts the rest of his portfolio of exclusive, luxury developments./nbsp]

For the moment, Benko has not been charged with any wrongdoing.

Galeria Karstadt Kaufhof files for bankruptcy protection again

What: Google has announced that it will be possible to use augmented reality in Google Maps to assist in locating any establishment or service within its application.

Why it is important: Google will project an overview of surrounding addresses using augmented reality and its users’ smartphone cameras to help people better navigate and discover stores and services on its Map application.

This new experience will be deployed from the end of November 2022 in Los Angeles, New York and San Francisco in the United States, but also in Tokyo, London and Paris, on both Android and iOS.

Google Maps adds augmented reality to locate businesses

What: Selfridges managing director Anne Pitcher is joining the board of the Canadian department store chain, Holt Renfrew, as its deputy chair.

Why it is important: Anne Pitcher will remain in the company’s leadership team until the end of the year before joining as deputy chair for Holt Renfrew which remains under Weston ownership, the previous owners of Selfridges Group.

Stefano Della Valle, CEO of Central and Signa’s luxury department store group in Europe, will lead Selfridges in his expanded role.

Selfridges managing director to join Holt Renfrew board

What: Fiona Westenberg is becoming head of the Oberpollinger in Munich as General Manager for the KaDeWe Group department store.

Why it is important: Fiona Westenberg, former Head of Sales for all fashion areas at KaDeWe since 2016, will replace Alexander Repp as General manager, while he moves to Oberpollinger’s Swiss sister company Globus for his new role as Retail Director.

Oberpollinger welcomes new boss

What: Acquisition-hungry Frasers Group is reportedly nearing the close of a deal to take over the historic Gieves & Hawkes label.

Why it is important: An agreement to buy the Savile Row tailor is imminent following the collapse of Gieves & Hawkes’ Hong Kong-based owner Trinity Group.

The sale has yet to be confirmed by either Frasers Group or Gieves & Hawkes, but speculation appears confident following a shortlist of bidders made in September and Frasers’ recent purchases of stakes in upscale and mass-market businesses.

Frasers Group set to buy Gieves & Hawkes

What: The US mall giant is very confident about the future thanks to excellent Q3 postings.

Why it is important: The cost of e-commerce returns in the US makes an argument in favour of physical retail, which is in addition the best way to convey an experience. As a consequence, Simon Property Group is still very confident in the mall business, even though the group has diversified recently by also taking shares in mixed-use retail developers.

David Simon spoke to WWD in order to emphasise to what extent physical retail is still very much alive, especially in malls. E-commerce is of course necessary, but it is not possible to make a full living out of it.

He bases his declarations on the SPG Q3 2022 results, which showed a +14% profitability per sqm year-over-year, as well as a 25% increase of income to $679.9m and an occupancy rate of 94.5% compared to 92.8% last year.

Taking the inflationary context into account, he still believes that SPG is well positioned to weather the storm, as, for him, physical retail is where the action is and the demand for spaces and deals is still very strong.

David Simon sees momentum in physical retail 

What: Due to Farfetch ending its operations in Russia and being hit by the COVID-19 restrictions of China, the company posted a net loss of USD 274.9 million in the third quarter.

Why it is important: Compared to earnings of USD 769.1 million a year ago, Farfetch’s Q3 results left investors feeling antsy and sent shares of the company down 9.7% to USD8.25 in after-market trading on Thursday.

Farfetch’s third-quarter revenues rose 1.9% to USD 593.4 million, an increase of 14.1% in constant currencies. The gross merchandise volume slipped 4.9% to USD 967.4 million, which would have been an increase of 4.2% in constant currencies. Farfetch’s active customer count for the quarter grew by 8.6% to 3.9 million from a year earlier. And gross profit margins increased 44.9%, and adjusted losses before interest, taxes, depreciation and amortization tallied 4.1 million.

Farfetch shares drop after posting Q3 report

What: Showfields is bringing its distinctive retail format to Brooklyn, New York with an 11,500-square-foot, tech-enabled store.

Why it is important: Playing on the concept of a house, Showfields also aims to target a younger demographic through a storytelling-based merchandising strategy that rewards brand discovery by leveraging data and technology.

Customers can scan and learn about products as they enter rooms focused on different parts of a house. The app through which customers shop unlocks a lower price only available at the store which is always 10% lower than anywhere else. This is intended to be a reward to the customer for coming in-store and discovering more about the products. The reward to customers is also an opportunity for brands to understand which customers saw their products and interacted with the brand’s website. Sensors and POS software gather figures on sales, traffic, customers’ gender and whether they touch and engage with products or just pass by, among other types of data.

Showfields also doesn’t operate using a wholesale model but intends to democratize retail through lowered costs for displaying items based on the number of SKUs.

House of Showfields opens in New York

What: Target is introducing a new large-format store that will be roughly 20,000 square feet larger than its average store at 150,000 square feet.

Why it is important: Pivoting away from its recent small-format store expansion, Target will use the larger format to play with a more open layout and localized elements that the retailer plans to incorporate into future remodels.

The move is intended to better support same-day services while incorporating more sustainable features such as larger windows for more natural light and plants and regionally sourced reclaimed wood to create a “welcoming” atmosphere. The new design features will be rolled out in remodels to more than 200 stores beginning in 2023 as well as 30 new stores that Target has planned. Starting in 2024, all of Target’s remodels and new stores are expected to incorporate the designs.

Target pivots to larger store format

What: As part of its birthday celebration, KaDeWe held a party for the reopening of converted areas of the Berlin building.

Why it is important: KaDeWe celebrated extravagantly the reopening of and the 115th anniversary of the store which has been marked by a party and Christmas shop windows designed by Dior.

2,000 guests celebrated on three floors with multiple guest DJs who performed in the department store. As well, the in-house pastry shop made a 6-tier birthday cake, 2 metres long, 1 metre wide and 2.20 metres high featuring the new escalator at KaDeWe as the design.

KaDeWe celebrates 115th anniversary

What: Macy’s, Inc. has announced its plans for S.P.U.R. Pathways (Shared Purpose, Unlimited Reach), a capital funding program to support underrepresented businesses.

Why it is important: Over the next five years, Macy’s projects to provide approximately 100 million dollars in capital for diverse-owned and underrepresented growth-stage businesses.

A third channel through a Momentus Capital loan program will provide an additional 100 million dollars. Businesses that participate in the S.P.U.R. program will have access to various tools, training and opportunities along with an advisory network to help with strategy, credit improvement, business plans, financial reporting, daily operating challenges, business strategy, opportunity evaluation and other personalized services.

Macy’s, Inc. partners with Momentus Capital to launch capital funding program

What: Harvey Nichols has unveiled a new shop-in-shop for Jacquemus with architecture inspired by Provençe through the materials and structures.

Why it is important: Harvey Nichols launched the first UK-based Jacquemus shop-in-shop two years ago and has now expanded the concept to cover 900 square feet making it the largest retail space for the brand in London.

The new immersive space designed by architecture practice OMA/AMO replaces the former, smaller Jacquemus shop-in-shop in the Knightsbridge store.

Harvey Nichols unveils Jacquemus shop-in-shop

What: China continues to ease COVID-19-related travel restrictions; however, Barclays expects that the remaining restrictions will continue to hurt traffic and sales for luxury brands in the near term.

Why it is important: International travellers’ quarantine time has been reduced by two days and inbound flight bans have been cancelled, leading to travel searches for international flights to triple since the announcement. The release streamlines the process for business travellers and sporting-event participants.

Quarantine durations have also been cut for locally infected people from seven days to five. Despite the needed relaxing of travel restrictions for retail, predictions for fourth-quarter reports remain realistic, expecting rolling lockdowns amid increased cases in recent weeks.

Barclays expects the recovery to begin fully in 2023.

China lifts flight bans

What: Gap has announced its distribution partnership with Amazon Fashion which will offer a range of the brand’s stock on the marketplace’s US and Canadian sites.

Why it is important: The Gap group moves to engage with new customers and expand its channels to combat continued falling revenues and increased operational costs.

Gap will launch a selection of basic essentials across adult, teen, children’s and baby categories as part of its agreement to open a new distribution channel through Amazon’s services.

Gap launches through Amazon US and Canada

What: Saks Off 5th’s website has launched a ‘Guaranteed Deliver Date’ service that allows customers to see a more accurate delivery date for an order at the time of checkout.

Why it is important: Just in time for the holidays, Saks is taking a customer-centric approach with their new guaranteed delivery date service provided for all possible shipping methods, allowing customers to select the delivery date and cost option that best suits them.

Instead of three- to five-day time frames for delivery or waiting until an order has shipped for customers to have visibility, Saks Off 5th online customers can now see specific delivery dates when browsing product detail pages or at the time of checkout.

In addition, Saks Off 5th.com has introduced next-day and expedited delivery options.

Saks Off 5th enhances delivery service

What: According to Bain & Company and Altagamma’s most recent study, the luxury goods segment will continue to expand until 2030 despite global political and economic uncertainty.

Why it is important: The study concluded that the global luxury goods industry is projected to achieve a market value of 1.4 trillion euros in 2022, up 21% compared to 2021.

Revenues are projected to climb to 353 billion euros, a 22% increase between 2021 and 2022. However, personal luxury goods are expected to see slowing market growth of around 3-8% in 2023. Analysts remain positive that luxury will be resilient to recession unlike during the 2009 financial crisis with growth of 60% by 2030 and a potential increase of 550 billion to 570 billion euros compared to 2022.

China will be a key factor for the fourth quarter performance of 2022 and the growth of the luxury market. As well, brands and retailers focused on this segment will need to prioritise ESG, creativity, agility, technology and data.

Global luxury goods market to reach 1.4 trillion in 2022