What: Macy's, Inc. has announced the appointment of Sharon Otterman as the new Chief Marketing Officer, effective from December 11.

Why it is important: With over 25 years of experience in marketing and brand transformation, Otterman brings a diverse background in media, entertainment, and digital transformation to enhance Macy's shopping experiences.

Otterman will be responsible for leading Macy's marketing efforts, focusing on brand evolution, customer engagement, and loyalty across all segments. She will oversee brand activation, advertising, visual merchandising, and media strategy for the Macy's brand. Additionally, Otterman will lead and expand Macy's signature events, including the Thanksgiving Day Parade, July 4 fireworks, and Spring Flower Show.

Macy's appoints new chief marketing officer

What: Falabella has reported progress in reducing its losses during the third quarter of 2023.

Why it is important: Falabella has made efforts to improve its savings, reducing its inventories by 23% and achieving efficiencies of USD 60 million in the third quarter.

Despite a challenging consumer environment, the company has managed to decrease its losses from USD 19 million in the same period of 2022 to just USD 5 million in 2023. Revenues reached USD 3,001 million which is a 10% decline compared to Q2 of 2022. Gross profit also fell by 6% to USD 994 million. The decrease in income is due to declines in the "Home Improvement" and "Department Stores" divisions in Chile and retail businesses in Peru.

The company also plans to raise between USD 800 and USD 1 billion by monetizing non-core assets, mainly real estate.

Falabella releases its Q3 financial report 

What: Selfridges stands out as a winner amidst Signa’s financial challenges.

Why it is important: Despite Signa’s challenging process of determining viable assets, Selfridges continues to thrive, with its festive season offerings attracting crowds and evolving with the times.

While Signa owns various retailers in Germany, Italy, and the Netherlands, Selfridges remains a highly regarded and sought-after asset. However, many of Signa's other department stores are likely to require significant redevelopment to have a sustainable future.

The Covid-19 pandemic and online shopping have further impacted the retail sector, making it a difficult time for commercial real estate. Germany, in particular, has been a challenge for Signa, with insolvency proceedings initiated for its Galeria Kaufhof and Karstadt stores. Forced asset sales may be part of Signa's survival plan as the situation evolves rapidly.

Selfridges stands out as a winner in Signa’s retail implosion

What: A semi-promotional piece about how Ikea is leading its sustainable efforts in the constraints of limiting its prices.

Why it is important: sustainability is often associated with high prices by both retailers and customers, and this is what limits the possibilities to go greener and more efficient at the same time in terms of business.

Karen Pflug, the chief sustainability officer at Ingka Group, Ikea's largest retail franchisee, is leading the group's ambitious transition to a circular business model by 2030. This initiative includes making sustainable living affordable and accessible to all, incorporating circularity in store design, and educating consumers about sustainable practices. Ikea aims to reduce its greenhouse gas emissions by 50% by 2030 and achieve full circularity in the same year. The company is focusing on using recycled or renewable materials in its products and making them easy to reuse, refurbish, or recycle.

Ingka Group conducts a global survey every two years to understand consumer attitudes towards sustainability, informing its strategy to work with municipalities and governments for better legislation and initiatives. An example of this effort is in the Netherlands, where Ikea collaborated with local authorities to recycle over a million mattresses.

The challenge for Ikea is to alter consumer perceptions of its products as disposable and low-priced, and instead emphasize durable, sustainable, and affordable products. Ikea stores now feature sustainable living shops and circular hubs, offering second-hand furniture and products that support a sustainable lifestyle. The company's buyback & resell service is also gaining popularity, with significant increases in customer usage and items given a second life.

Ikea, under Ingka Group, is committed to reducing its carbon footprint and fostering a more sustainable business model, demonstrating that environmental consciousness can coexist with affordability in retail. Pflug envisions a future where sustainability is so ingrained in Ikea's operations that her role as a sustainability officer becomes obsolete.

How Sustainability And Affordability Can Go Hand-In-Hand: The Case Of Ikea

What: Saks CEO Marc Metrick recently addressed the state of the luxury market, emphasizing its long-term potential for growth.

Why it is important: The article provides insights into the perspective and growth strategies of Marc Metrick, as well as his view on the long-term potential of the luxury market.

Metrick highlighted Saks' "three horizons" of growth: international potential, Barneys and the 2023 holiday season. He believes that luxury consumers are more resilient during economic downturns, often being the last to cut back on spending and the first to recover. Saks also plans to expand internationally, with a digital-first approach to entering new markets and partnering with local stakeholders. Metrick also discussed the importance of using AI and analytics to prevent fraud and enhance the shopping experience. While he did not specify any explosive or significant plans for Barneys at Saks, Metrick emphasized a careful and measured approach to its development. They are committed to nurturing and expanding the concept but will proceed cautiously. The focus is on seizing strategic opportunities and ensuring the long-term success of Barneys at Saks.

Saks’ CEO, Marc Metrick on Saks and the luxury market

What: HBC, the parent company of Saks Fifth Avenue and Hudson's Bay, has generated USD 340 million in cash from the sale of real estate properties.

Why it is important: The CEO, Richard Baker, emphasized that HBC is primarily a real estate company, owning USD 7 billion worth of real estate assets. The company regularly monetizes its real estate assets to support and grow its retail businesses.

The recent cash infusion came from the sale of undisclosed properties in Canada and the U.S. HBC sells USD 300 million to USD 500 million in real estate assets annually, strengthening its balance sheet but not factoring into earnings.

Saks parent HBC raises USD 340M through ‘real estate monetizations’

What: Luxury resale is making its way into travel retail, with airports and cruise lines embracing the trend to offer pre-owned luxury goods.

Why it is important: The integration of pre-owned luxury goods into travel retail caters to the sustainability-conscious, price-conscious, and collectors market segments, while also offering a unique value proposition of exclusivity and tax-free prices for travellers.

The global market for pre-owned luxury goods grew by 28% in 2022 to EUR 43 billion, driven by sustainability concerns and affordability for aspirational consumers. In the travel retail sector, sales of luxury goods increased by 40% in 2022, but still remain below pre-pandemic levels.

ARI, a travel retailer, plans to open a pre-owned luxury boutique at Lisbon Airport and expand the concept to other airports worldwide. Harding+, a cruise liner retail operator, is also expanding its preloved offer and introducing a vintage lounge concept called 'Reloved'.

Leather goods, watches, and jewellery are the best performers in pre-owned luxury on cruise ships, providing travellers with exclusivity, tax-free prices, and access to rare and limited-edition pieces. Curation plays a vital role in the limited space of travel retail, with vendors combining passenger data and demographic information to create unique assortments for different ships and destinations.

Luxury resale hits airports and cruise lines. Can it scale?

What: The Saks Luxury Pulse survey found that 75% of luxury shoppers plan to spend the same or more on their holiday shopping this year, similar to last year's numbers.

Why it is important: The findings of the Saks Pulse survey reveal the holiday shopping intentions of luxury consumers which allows businesses in the luxury sector to tailor their strategies and marketing efforts accordingly.

57% of luxury consumers plan to spend the same or more on luxury goods in the next three months, with a slight decline among those earning USD 200,000 or more. More shoppers are planning to wait until after Thanksgiving to start their holiday shopping, with a 10% increase compared to last year. 64% of shoppers plan to do most of their shopping online, representing a 15% increase from the previous year.

Although economic concerns persist, 64% of luxury shoppers still feel optimistic about their own finances and there is a slight increase in the willingness of luxury consumers to pay full price for their purchases.

Luxury consumers also plan to spend 46% of their holiday budget on themselves, with Millennials more likely to adopt this trend.

Saks Luxury Pulse survey finds that most luxe shoppers will spend the same or more 

What: The Robin Report examines to what extent Black Friday has become a longer promotional event and the consequences of such an extension.

Why it is important: Black Friday has become a must-have for online and offline retailers, but at what cost?

Over recent years, there has been a significant shift in Pre-Black Friday sales strategies. Retailers have moved from major one-day promotions to more extended periods of deals, a trend referred to as the "Black Friday drip." This change is evident when comparing the pre-Black Friday landscape of 2017, where deals were limited and focused on in-store shopping on Thanksgiving Day, to more recent years where promotions are spread over weeks.

The pandemic served as a major disruptor, accelerating this shift as consumer shopping habits increasingly leaned towards online purchases. Retailers, including specialty stores, began offering promotions much earlier, with some starting as early as October to compete with events like Amazon's Prime Days.

In 2021, this trend intensified, with deals beginning in early November and even late October. The strategy appears successful, as a significant portion of consumers now plan to start holiday shopping before November. However, there's concern that the constant stream of deals might overwhelm some customers, especially if promotions are perceived as less significant.

Retailers now face the challenge of balancing the allure of early and frequent promotions with the risk of deal fatigue among consumers. Success in this new landscape is measured not just by sales, but by customer engagement metrics like email open rates and click-throughs. The shift towards early promotions has transformed the shopping experience into a more transactional one, potentially affecting the traditional holiday shopping spirit. The final impact of these strategies will become clearer post-Black Friday, shedding light on the effectiveness of these early promotional tactics.

Is pre-Black Friday a winning strategy?

What: Siam Piwat Group has received 3 international awards: Best Developer, best luxury lifestyle mall, and Iconic Developer.

Why it is important: International department stores need to keep an eye on what is going on in Thailand as the 3 major groups are rivalizing in terms of retail innovation.

Siam Piwat Group, a prominent Thai real estate and retail business developer, has been recognized with three major awards at the Global Brand Awards 2023 in the UK. The honours include 'Iconic Developer of the Year' for Siam Piwat, 'Best Luxury Lifestyle Mall' for Siam Paragon, and 'Best Cultural Attraction' for IconSiam.

These accolades underline Siam Piwat’s success in creating globally renowned destinations that provide exceptional experiences and showcase Thai identity on the world stage.

The Global Brand Awards, hosted by Global Brands Magazine, acknowledge excellence in branding and customer engagement across various sectors.

Siam Piwat Group honoured at Global Brand Awards

What: Kohl’s president exits after only 8 months in the job.

Why it is important: Finding the right COO is hard for retail companies. Keeping said COO becomes increasingly harder.

On Friday, Kohl's revealed through a Securities and Exchange Commission filing that its President and Chief Operating Officer, Dave Alves, who joined the company in April with extensive retail experience, has departed. Alves's departure, described as a move to pursue other opportunities, comes amidst Kohl's recent struggles, including pressures from activist investors and challenges in its leadership team. The company expressed gratitude towards Alves for his contributions. Kohl's, facing a 5% year-over-year decline in store comps and a 60% drop in profits in its most recent quarter, remains in a precarious position as it prepares to announce its Q3 results.

Kohl’s president, COO exits after less than a year

What: This Black Friday should expose US customers’ fatigue with inflation, as the hunt for bargains has increased

Why it is important: The US market is not specific when it comes to price issues, and it might mean that all retailers across the planet are facing the same dilemma: more promotions and price decreases, less margins.

Amid inflation and economic strain, American consumers, fatigued by higher prices, are expected to turn out in record numbers for the US holiday season, particularly during Black Friday. The National Retail Federation predicts a significant increase in shoppers, with average spending also expected to rise. However, this season's spending is only anticipated to match inflation rates, reflecting consumers' cautious approach.

Retailers are responding to this shift by offering more substantial discounts, especially in categories like apparel and electronics. Despite easing inflation, the pandemic's savings buffer is dwindling for many households, influencing purchasing decisions. Large retailers like Home Depot, Lowe’s, Kohl’s, and Best Buy have reported a drop in spending on non-essential items and large projects, indicating a more cautious consumer attitude.

Walmart, the nation's largest retailer, foresees a potential period of deflation, and nearly 80% of consumers are considering trading down for cheaper alternatives or forgoing purchases altogether. This year has also seen a rise in the use of flexible payment options like buy now, pay later, especially among younger shoppers.

Retailers are focusing more on affordable private label brands to cater to the price-sensitive market. Consumers are adapting by becoming more selective and value-conscious in their shopping, seeking substantial discounts and prioritizing necessary items over luxury goods. The mood in shopping centers reflects this cautious approach, with many adjusting their holiday budgets due to increased everyday expenses.

Inflation puts US Black Friday crowds in a bargain-hunting mood

What: Thailand is counting a lot on Chinese tourists who are not yet back in the country.

Why it is important: Thai retailers are gearing up to propose new experiences, but they need a critical traffic mass to be sustainable.

Despite lifted COVID-19 restrictions and a visa waiver, anticipated Chinese tourism recovery hasn't materialized, with fewer than expected arrivals and ongoing safety concerns. The industry is now shifting focus from the once-criticized "zero dollar tourism" groups to more affluent travelers and niche markets like LGBTQ+ visitors, who see Thailand as a freer, more open society. But overall, the Thai tourism sector still grapples with challenges including a reduced number of low-cost flights, a slower Chinese economy, and negative perceptions fueled by social media and films like "No More Bets," which depict Southeast Asia as dangerous. Despite these setbacks, Thailand continues to recognize the importance of Chinese tourists, who are among the highest spenders in the country.

Chinese tourists are not yet back to Thailand and it might last for a while

What: Bain and Aptos’ research reveals that meeting consumers' demand for a seamless shopping experience across multiple channels is a top priority for retailers and brands.

Why it is important: Retailers and brands that invest in technology to deliver a seamless experience experience higher profitability and sales growth than their peers. However, few companies have a clear roadmap for implementing unified commerce.

Integration of back-end and in-store technology is desired, but physical stores are not yet ready for this integration. Retailers are more likely to succeed when they align the entire organization and use data analytics to understand customer preferences across physical and digital channels.

The report highlights the importance of offering in-demand services such as buy online, pick up in store (BOPIS) and ship from store, but it also emphasizes the need to ensure a seamless customer experience, as customers are likely to abandon their purchases if they encounter gaps or disruptions.

Unified commerce: key to profitability and sales growth, according to Bain and Aptos study

What: Marks & Spencer has been granted approval by the High Court to proceed with a judicial review over the rejection of its Marble Arch store redevelopment project.

Why it is important: The outcome of the judicial review for M&S's Marble Arch store redevelopment will determine if the rejection decision can be overturned and pave the way for the transformation of the site into a modern, sustainable building. The review is expected to take place next year, and M&S will need to prove that there was an error in the government's decision-making process.

The proposed redevelopment involved demolishing the Art Deco building and constructing a new one, but concerns were raised about potential harm to nearby landmarks and the scheme's carbon footprint. M&S CEO Stuart Machin expressed his disappointment with the decision and stated that the refurbishment of the existing store was not possible. However, he remains determined to secure a better future for the Marble Arch location and its community.

Marks & Spencer gets approved to legally challenge Marble Arch redevelopment rejection

What: Social network TikTok, after having forayed into social commerce, is adding new features such as product authentication.

Why it is important: By including new features they reinforce their central place in the younger generations’ lives and raise the bar higher for other more traditional retailers, unable to follow their price point strategy.

TikTok has partnered with luxury goods verification service Real Authentication to ensure the authenticity of used handbags sold on its U.S. platform, TikTok Shop. Merchants are required to get their handbags verified by Real Authentication, which uses a proprietary Smart Database scan technology to detect counterfeits. Once verified, sellers can list these bags on TikTok Shop, including the authenticity certificate. This move comes after the September launch of TikTok Shop in the U.S., aiming to boost buyer and seller confidence in the resale luxury market. Real Authentication also authenticates other items like clothing, jewelry, and shoes. This initiative follows similar steps by other major retailers, like Fashionphile and eBay, to offer verified luxury secondhand goods.

TikTok to offer authenticated handbags

What: Urban Outfitters' clothing rental service, Nuuly, is surpassing Rent the Runway in subscribers and is on track to profitability, capitalizing on the demand for casual wear and a broad size range.

Why it is important: Urban Outfitters Inc. has spent at least USD 100 million on Nuuly, making a bet that an affordable, more laid back option in rental will bring in younger, less-affluent customers. With the backing of a billion-dollar parent company and an emphasis on everyday dressing, Nuuly has been well poised for success in a post-pandemic world.

Urban Outfitters has invested over USD 100 million in Nuuly, its own clothing rental service, which is proving to be a strong competitor to Rent the Runway by focusing on casual, everyday wear. With over 190,000 subscribers, Nuuly is outpacing Rent the Runway's user base and is expected to become profitable soon.

Nuuly's success is attributed to its single, affordable membership option, a wide selection of casual and dressier options from Urban's brands and other contemporary labels, and larger inventory purchases that keep popular items in stock. Nuuly also caters to a broader range of sizes, including plus sizes, which has been well-received by customers.

Despite the challenges of the rental market, such as customer turnover and rental fatigue, Nuuly's growth indicates a strong potential for the rental model in the fashion industry, with Urban Outfitters aiming to make it their next billion-dollar brand.

Urban Outfitters invests in rental service

What: Dutch supermarket chain review its 7-points commitments, which were designed in 1996;

Why it is important: While some of them are dropped as the promise has become mainstream (”freshest food possible”), some other are interesting because they show the inability to maintain such promises in front of competition without putting the business model at stake. John Lewis has done the same earlier in 2023.

Dutch supermarket Jumbo is updating its "Seven Certainties" marketing strategy to align with changing customer expectations and market dynamics. Originally introduced in 1996 by founder Karel van Eerd, the Seven Certainties were distinct promises to differentiate Jumbo in a competitive market. Now, after 27 years, Jumbo is revising these certainties, acknowledging shifts in consumer behavior and industry practices. Notably, the chain is dropping its lowest price guarantee, which had become less relevant due to complex conditions and the rise of incomparable private labels. Additionally, certain assurances, like short checkout waiting times and guaranteeing fresh products, are being reconsidered or removed, as they have become standard expectations or obsolete due to self-service checkouts. Jumbo, however, continues to emphasize its commitment to offering value in terms of price, product range, and service.

In the Netherlands, Jumbo drops lowest price guarantee

What: Selfridges could be put up for sale as co-owner Signa Group faces a cash crunch.

Why it is important: The potential sale of Selfridges due to co-owner Signa Group's financial crisis highlights the significance of economic challenges faced by retail businesses and the potential impact on iconic department stores.

Signa, which acquired Selfridges along with Central Group last year, has called in restructuring experts to raise money amid a financial crisis. It is believed that Signa's stake in Selfridges might be auctioned, with Central Group being the most likely buyer. Signa and Central Group jointly own department store businesses such as Rinascente in Italy and KaDeWe in Germany.

Signa's expansion plans have been hindered by rising borrowing costs and falling property valuations, leading to the halting of construction on the Elbtower in Hamburg. Frasers Group's acquisition of SportScheck from Signa is also in question as the retailer teeters on the brink of collapse.

Selfridges, however, states that its operations are independent of any support from shareholders and remains focused on providing an exceptional Christmas shopping experience.

Selfridges co-owner Signa faces financial crisis

What: E-commerce sales in the United States are projected to surpass $1.1 trillion in 2023, displaying substantial growth compared to the $1 trillion recorded in 2022, as per the Department of Commerce

Why it is important: Despite a 7% growth rate in 2023, it represents the slowest expansion since the 2009 recession. The current e-commerce landscape is 14% above the theoretical trendline based on pre-pandemic forecasts, according to Marketplace Pulse's analysis.

The pandemic-induced surge in e-commerce is gradually declining, suggesting a potential alignment with the trendline in the coming years. While industry giants like Amazon, Walmart, Shein, and Temu have outperformed the 7% growth rate, smaller players may have experienced negative growth.

E-commerce has remained relatively stagnant as a percentage of total retail in recent years but continues to grow in absolute terms. In the past, the growth rate of e-commerce averaged around 14-15%, with acceleration and subsequent deceleration during the pandemic. The observed 7% growth rate in 2023 is seen as a possible bottom, with expectations of future acceleration to 9-10% in the coming years, highlighting the ongoing upward trajectory of e-commerce.

U.S. online sales to exceed 1.1 trillion dollars in 2023 

What: Klarna reported its first quarterly profit in four years, signalling a potential stock market listing.

Why it is important: The potential stock market listing indicates a growth in the "buy now, pay later" fintech sector.

The company achieved a net profit of SKr90mn in Q3 2023, compared to a SKr2.1bn loss the previous year, with revenue increasing by 30% to SKr6bn. Klarna also reduced its credit losses by almost half, thanks to improvements in its underwriting models.

As part of its journey towards an eventual IPO, Klarna established a UK holding company alongside its Swedish banking license. The company has not yet decided on the specific location and timing of the listing.

Klarna's CEO, Sebastian Siemiatkowski, expressed satisfaction with the Q3 profit and emphasized the company's readiness for an IPO, once market conditions improve. Klarna's potential London listing would boost the London Stock Exchange Group.

Klarna studies ‘eventual IPO’ after first profit in 4 years

What: Korn Ferry argues that while retailers have for long focused on the younger generations, the retiring Boomers might be a pocket of growth for the coming years.

Why it is important: This is exactly what was discussed at the last IADS CEO meeting in London.

Retailers, traditionally focused on marketing to younger customers, are now recognizing the significant spending power of senior citizens. Since the pandemic, seniors in the US have accounted for 22% of all retail spending, despite being just 17% of the population. This surge in spending by baby boomers, now the wealthiest segment in society, is attributed to factors like paid-off mortgages and student loans, less financial support needed for children, and being less affected by recent interest rate spikes. Many are also working later into life, maintaining full-time incomes.

However, attracting spending from seniors is challenging. They tend to have established needs in terms of clothing and furniture and are often cautious about splurging on luxury items due to concerns about future expenses. Retailers are advised to focus more on what seniors want, like unique customer experiences and health products tailored to them.

There's a growing trend towards offering experiences in travel, entertainment, and active senior living with various amenities. This shift aligns with seniors' desires for hospitality-driven environments and activities suitable for their lifestyle. While it's uncertain whether this emphasis on experiences is a temporary effect of pent-up demand from the pandemic or a long-term trend, it's clear that enticing senior customers will require exceptional products and innovative experiences.

Catching the new big spenders

What: Reliance Retail Ventures Limited has acquired exclusive rights to Sephora's presence in India, aiming to dominate the Indian beauty market.

Why it is important: The partnership with Sephora will boost Reliance Retail's beauty platform, Tira, and help them compete with Nykaa, a leading player in the Indian beauty market.

As part of the agreement, Reliance Retail will take over the operation of Sephora's 26 stores in India, expanding the brand's footprint in the country. The Indian beauty and personal care market, valued at $17 billion, is still considered to be in its early stages, presenting significant growth opportunities. With a growing desire for self-expression and increasing aesthetic refinement among Indian consumers, the beauty market is expected to thrive.

Reliance Retail to take over Sephora India

What: Zalando has introduced a new ChatGPT-powered feature called Fashion Assistant for UK and Ireland shoppers.

Why it is important: The Fashion Assistant allows logged-in consumers to explore Zalando's assortment using their own words and expressions.

The Fashion Assistant adapts results in real-time based on the questions asked by the users. It may still have some initial teething issues due to being in the beta stage of development.

Zalando adds ChatGPT Fashion Assistant to UK offer