What: Saks Fifth Avenue has unveiled "The Studio" on the 10th floor of its Manhattan flagship store as a new format aimed at attracting talent.

Why it is important: The goal is to attract talent that prefers working in the Saks ecosystem but may not be interested in traditional retail settings.

The Studio offers a space for personal shoppers, digital sellers, independent stylists, and influencers to promote and sell merchandise from Saks. The initiative is a response to the increasingly remote and independent work styles of style advisors who generate business outside traditional selling floors. The Studio provides access to Saks merchandise, along with resources such as filming sets, a photo studio, and workstations for content creation.

Saks sees this as a long-term commitment and an innovative approach to driving productivity and attracting talent. The move follows the shelving of a previous plan to open a casino on floors nine to eleven of the flagship store.

A new format for the Saks Fifth Avenue flagship

What: John Lewis is criticised for the lack of social housing in sufficient proportion in its housing programme.

Why it is important: Diversification is not easy as it forces to confront to new problematics.

London officials criticised John Lewis for planning to build a flagship development in Bromley with potentially as low as 10% affordable housing. Though John Lewis initially aimed for 20% affordable units, the Greater London Authority Planning Unit found this insufficient given the project's scale. The retailer plans to construct 353 flats above a Waitrose store. Discussions are ongoing with the goal to increase affordable housing in the development to 35%.

John Lewis criticised for its housing programme social aspect

What: André Maeder has been announced as the new CEO of Selfridges Group after its acquisition last year. Maeder will assume the role in spring 2023, following his departure as Chief Executive and Managing Director of KaDeWe Group on November 1.

Why it is important: The appointment of André Maeder could contribute to the growth and success of Selfridges and its associated European retail businesses as he has a successful track record in transforming luxury department stores.

Selfridges Group was acquired in August 2022 by a consortium led by Central Group and Signa Group. The deal was reported to be worth GBP 4 billion and included Selfridges' European retail businesses in the UK, Ireland, and the Netherlands.

Maeder will be based in London and will oversee the management and coordination of Selfridges, De Bijenkorf, and Brown Thomas Arnotts. Since joining KaDeWe Group in 2014, Maeder played an instrumental role in transforming the group's luxury department stores, including KaDeWe, Alsterhaus, and Oberpollinger.

Michael Peterseim will replace Maeder as CEO and Chair of KaDeWe Group, while Janina Schüßler and Julia Lehmann have been promoted to director positions within the company.

Selfridges Group appoints KaDeWe Group chief executive as new CEO

What: India sees a surge of retail square meters in all categories.

Why it is important: Are you ready to see India become a retail giant?

Retail space leasing surged by 46% across eight cities to 4.73 million square feet from January to September, compared to 3.23 million square feet in the same period the previous year, as reported by CBRE. Bengaluru, Delhi-NCR, and Pune combined contributed to over 61% of this leasing activity.

Anshuman Magazine, CEO of CBRE in multiple regions, highlighted the impressive growth in retail absorption and anticipated a further increase due to the festive season.

The retail sector is undergoing significant transformation, with a focus on enhancing in-store experiences. The primary sectors contributing to leasing were fashion & apparel (34%), home & department stores (17%), and food and beverage (13%). The report also provided specific leasing figures for various cities.

Retail space in India is increasing +46%

What: Siam Piwat takes bold commitments in terms of clean energy and, more generally speaking, Scope 3 objectives.

Why it is important: While sustainability is not yet a selling point in Thailand, every local player is taking position in order to be perceived as the first entrant on this value proposal.

Retail developer Siam Piwat Group commits to net-zero greenhouse gas emissions by 2050 and plans to use 100% renewable energy by 2030. They oversee significant properties in Thailand, like Siam Paragon and IconSiam. Their sustainability drive includes forming partnerships for clean energy projects and launching the Siam Piwat 360° Waste Journey to Zero Waste initiative. They intend to transform Bangkok's Pathumwan area into a model smart eco-district. The company has integrated energy-efficient systems, installed rooftop solar panels at major outlets, and introduced electric vehicle charging stations. They also focus on waste management, aiming to divert half of their waste from landfills by 2030. With assistance from experts and collaborations, they aim to position Pathumwan as a top shopping destination while promoting sustainability. Siam Piwat's ultimate goal is to champion sustainability for Thailand's better future.

Siam Piwat commits to use 100% renewable energy by 2023

What: Fenwick has announced plans to renovate its flagship store in Newcastle as part of a GBP 40 million investment program.

Why it is important: The company aim to create a modern and inviting shopping experience to attract new customers and maintain the store's market position.

The plans have been submitted to Newcastle City Council. The renovation will include creating a new central entrance on Northumberland Street and opening up ground-floor windows; Fenwick aims to create a "next generation" store and maintain its position as the preferred shopping destination in the region.

Fenwick sets out renovation plans for Newcastle flagship

What: La Samaritaine Rivoli is repositioning its product offerings to appeal to a younger clientele.

Why it is important: The store is opting for a more dynamic and youthful approach after it suffered from the Covid crisis, particularly impacting its Asian clientele who couldn't travel as planned, as well as the political strife and labour disputes.

The department store is debuting its “Sneakers Lounge”, located on the first floor of the Rivoli building, which offers a curated selection of brands such as New Balance, Dr Martens, Veja, and Vans, along with socks and shoe maintenance products. With a modern and minimalist design, the store aims to provide urban and trendy footwear options. On the ground floor, two pop-ups are present, featuring K-Way and Rains. K-Way showcases its R&D collection, while Rains presents a surrealistic design concept with stones climbing the walls to create unexpected shelving for bags and accessories. The pop-up stores will run from October 3rd to 31st.

Levi's, a renowned denim brand, has also been invited to set up a special corner on the first floor. This Levi's space offers a premium denim experience with customized merchandising, exclusive collections, and collaborations. The store provides an immersive fitting room experience and iconic Levi's decor to celebrate the brand's 150th anniversary.

La Samaritaine Rivoli reviews its product positioning 

What: An opinion piece on the state of big tech and how it has grown into a windfall economy.

Why it is important: Not only regulation (or public backlash) could affect what is available to retailers in terms of tech to promote their products, but it is also a striking parallel on how department stores lost their edge with years as they were growing their profits, somehow losing sight on their customers

Cory Doctorow, a renowned author and activist, has spent 20 years advocating against stringent copyright laws, tech monopolies, and surveillance capitalism. In his new book, "The Internet Con: How to Seize the Means of Computation," Doctorow underscores the covert threats hidden in mundane policies of tech giants. He aspires to galvanize public understanding and action against these issues through his book.

Doctorow acknowledges that he was once more hopeful about technology. However, with time, he observed that the tech sector shifted from being innovative and user-focused to becoming more monopolistic. Previously, tech firms emphasized creativity, making products that served users. But now, larger tech companies have colluded to stifle interoperability and curtail innovations that could threaten their dominance.

His primary argument is that policy intervention is essential to foster "adversarial interoperability," allowing new entities to challenge the prevailing tech titans. Reflecting on history, he believes that if conditions are restored where tech remains dynamic and cannot exert too much power, it would benefit the industry and users.

Doctorow introduces the term "competitive compatibility" or "comcom" as a synonym for adversarial interoperability, noting its easier pronunciation and the challenges associated with the original term.

Discussing the stronghold of platforms like Twitter, Doctorow points out that users stick to these platforms not necessarily because they're the best, but because of the immense costs associated with leaving, both in terms of followers and content. These constraints aren't technical but rather stem from policy restrictions that prevent alternatives.

Concluding the discussion, he emphasizes the challenge of making people care about tech policy before it's too late. Taking a leaf from Milton Friedman's playbook, Doctorow believes that in times of crisis, peripheral ideas can suddenly become central. As activists, he thinks the goal should be to have these transformative ideas readily available, waiting for the right moment of upheaval to drive substantial change.

Big Tech: there are no fast companies anymore

What: Siam Piwat is collaborating with 7 regional players, mostly malls, to extend the benefits of its loyalty program.

Why it is important: The IADS calls for clear and concrete collaboration between players in the world. This is a perfect example of regional integration.

Siam Piwat Group has joined forces with seven global retail titans to extend its 'Global Privilege Partnership' program, providing international shoppers with privileges previously exclusive to its VIZ loyalty Thai customers. The partnership includes retail giants like Parco (Japan), Taipei 101 (Taiwan), Times Square (Hong Kong), Ion Orchard (Singapore), Pavilion Kuala Lumpur (Malaysia), Plaza Indonesia, and Fosun (China).

Siam Piwat, a major player in Bangkok's shopping scene, is also in discussions with South Korea’s Hyundai Department Store for further collaboration. They've additionally partnered with Alipay, Klook, and Trip.com Group to enhance shopping experiences, especially for Chinese tourists.

The overarching strategy, "Collaborate to Win," aims to enrich the shopping experience for both local and international visitors, with a particular focus on Gen Y and Gen Z demographics. VIZ members can now avail themselves of exclusive benefits globally.

Support for the initiative is strong among international stakeholders, with many emphasizing mutual benefits, service elevation, and tourism support.

Furthermore, Siam Piwat's OneSiam SuperApp, introduced in 2021, has shown significant growth. The app focuses on enhancing the shopping experience, providing members early access to promotions, and offering a plethora of luxury brands.

Asian retail players unite around Siam Piwat’s loyalty program

What: Falabella announced the creation of a new corporate management that is aimed at synching falabella.com and Falabella Retail.

Why it is important: The goal of the omnichannel management is to achieve greater efficiency and profitability for the company.

The new management will focus on improving the customer offering and enhancing omnichannel capabilities and will be led by the former general manager of falabella.com, Benoit de Grave starting October 1st.

Falabella announces its new omnichannel corporate general management

What: BNPL giant Klarna now allows people to shop by simply taking a picture.

Why it is important: Here comes a new feature that department stores will have to have in a few years to remain relevant.

Swedish payments company Klarna introduced an AI-driven shopping feature, powered by OpenAI, which enables users to shop by photographing desired products. These products can then be quickly purchased through Klarna's app. The AI feature can identify and compare prices, retailers, and reviews for over 10 million items. To address privacy concerns, it restricts images of faces or bodies. Unlike Google's Lens tool, Klarna's is specifically designed for shopping. The feature is accessible in the US, UK, Germany, Sweden, Denmark, and Norway. Once considered Europe's top startup, Klarna offers a "buy now, pay later" service. Despite a decline in valuation, the company achieved monthly profitability earlier than anticipated.

Klarna adds AI-driven photo features to entice shoppers

What: Walmart's Mexico unit, Walmex, reported a 12.2% increase in net profit for the third quarter compared to the same period last year.

Why it is important: The significant increase in net profit and stronger sales for Walmex demonstrates the company's financial growth and success in the market.

The growth was primarily driven by higher sales. The company generated a net profit of MXN 13.63 billion (USD 782 million) during the quarter. Quarterly revenue rose by 7.7% to reach MXN 213.07 billion, slightly below the estimated figure. Walmex noted that its revenue was impacted by the appreciation of the Mexican peso, and without foreign exchange effects, its sales growth would have been even higher. Walmex experienced sales growth of 9.5% in Mexico and 9% in Central America.

The company opened 24 new stores in Mexico and three in Central America during the quarter, contributing to the increase in revenues. Earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 8.5% to MXN 23 billion. Walmex exceeded the estimated earnings per share, with MXN 0.78 compared to the expected MXN 0.74.

The company is currently facing an antitrust panel for alleged monopolistic practices after a three-year investigation. Walmex is confident in its compliance with the law and will defend itself against the allegations. If found guilty, the company could face a fine of up to 8% of its annual income in Mexico.

Walmart Mexico Q3 net profit jumps more than 12%

What: Walmart announced that it will no longer require degrees for some corporate jobs, as part of a broader effort to eliminate unnecessary barriers to career advancement.

Why it is important: By adopting a "skills-first" hiring process, employers like Walmart can expand their talent pools and enhance diversity, equity, and inclusion efforts. The move reflects a growing focus on skills among employers nationwide.

Job descriptions will be redefined to consider relevant degrees or the skills needed for the job, obtained through previous experience or alternative types of learning. This decision aligns with the trend of both private-sector and public-sector employers eliminating or reducing degree requirements for certain positions.

Walmart has not specified the specific skills they will be seeking, but some employers have moved away from degree requirements for jobs that require AI skills, rather than waiting for the availability of graduates in the field.

Walmart scraps degree requirements for some corporate jobs

What: Frasers Group has signed a binding agreement with Signa Retail Department Store Holding to acquire SportScheck, a leading German sports retailer.

Why it is important: The acquisition of SportScheck by Frasers Group is important as it allows Frasers to expand its presence in the German sports market.

The purchase price was not disclosed, and the completion of the deal is subject to merger control clearance, expected to be finalized in Q1 2024. This acquisition allows Frasers Group to expand its presence in the large European sports market and intensify its competition with JD Sports. SportScheck operates 34 stores in prime city locations across Germany, generating an annual revenue of approximately EUR 350 million and attracting over 13 million visitors each year.

Frasers Group plans to leverage its Elevation Strategy, which focuses on investing in store concepts, digital capabilities, and brand relationships, to enhance SportScheck's performance.

Frasers Group signs deal to acquire Germany's SportScheck

What: De Bijenkorf goes through a new restructuring plan.

Why is that important: The store is gradually abandoning any ambition to go beyond the Dutch borders.

Dutch luxury store chain, De Bijenkorf, is eliminating 37 managerial roles across its seven outlets due to rising operational costs affecting its profitability. This follows previous job cuts at its headquarters and a reduction in its international operations. Despite a turnover of €524 million, the company reported a net loss of €10.8 million. The retailer aims to improve efficiency and customer experience through these measures and has also limited its e-commerce activities to Dutch-speaking regions.

De Bijenkorf restructures again

What: The second location of the new generation department store, WOW, will open on Serrano Street in Madrid by the end of the year, aligning with the Christmas season.

Why it is important: The Serrano Street location will cater to different target audiences, enhance the brand appeal, and attract both local clientele and foreign tourists.

This new store, located in a former El Corte Inglés building at 52 C. de Serrano, will emphasize luxury fashion. The Serrano store aims to attract a predominantly Madrid-based clientele due to its location in the luxury-centric Salamanca neighbourhood, while the Gran Vía store expects a majority of foreign tourists. The Serrano location will feature 340 brands, including premium international names like Nanushka, ByFar, Coperni, and Bluemarine and will allow brands to rent and personalise their own spaces.

WOW will open its doors on Madrid’s Calle de Serrano at the end of the year 

What: Target has introduced an immersive toy experience on its website, allowing online shoppers to explore a virtual room of toys.

Why it is important: Target is focusing on its budget-conscious consumers while creating an innovative way for customers to shop online this holiday season.

The retailer is collaborating with FAO Schwarz to offer nearly 140 items co-designed with them, with most priced below USD 25. They are also promoting affordable toys from popular brands like Barbie, Play-Doh, Pokémon, Paw Patrol, Marvel, and Lego. Target aims to make discovery easier for at-home shoppers through this 360-degree feature. They have expanded their product assortment priced at USD 3, USD 5, USD 10, and USD 15, emphasizing affordability.

In addition to FAO Schwarz, Target has partnered with Disney to launch a limited-edition collection of Disney toys in celebration of the company's 100th anniversary, with over half of the collection priced below USD 25.

Target launches immersive toy experience

What: In spite of varying headlines, US consumption remains very high.

Why it is important: While spending remains high, it’s on experiences: dining, concerts, travels.

Despite rising interest rates, high inflation, reduced pandemic savings, and a cooling labor market, household spending remains strong. In August, Americans spent 5.8% more than the previous year, surpassing the inflation rate of less than 4%. The experience economy thrived, with companies like Delta Air Lines and Ticketmaster reporting significant growth.

Some financial experts attribute this behavior to consumers prioritizing short-term experiences over long-term goals due to the uncertainties brought about by the pandemic and other factors, like a challenging housing market.

Many are choosing to spend on experiences now, fearing they might not have the opportunity later.

Concerns about climate change are also motivating some to visit places before potential environmental changes.

However, there are concerns about whether consumers can sustain this level of spending, as factors like labor strikes, student loan repayments, and rising gas prices might force cutbacks. Recent surveys indicate a surge in consumer spending, which is unexpected given the prevailing economic conditions.

Many people are reevaluating financial norms, choosing to enjoy their money in the present rather than saving exclusively for the future.

American customers keep spending

What: China domestic aviation regulation expects domestic flights to increase +34% vs. prepandemic levels in 2023-2024.

Why it is important: Domestic retail has significantly increased in the country since the pandemic, but is it at the expense of international travel?

China's aviation regulator plans to increase domestic flights by 34% compared to pre-pandemic levels, aiding the recovery of Chinese airlines. Following this announcement, China's top airlines reported their first quarterly profits in over three years, indicating a positive turnaround from the COVID-19 pandemic's impact. The Civil Aviation Administration of China's new flight schedule, active until March 30, will introduce 7,202 new weekly flights from 516 new domestic routes, resulting in a total of 96,651 domestic flights weekly.

Flights in China to increase beyond prepandemic levels

What: The FT reviews what is currently at stake at Louis Vuitton and how the brand plans to reach the €30bn mark.

Why it is important: LV is increasingly identifiying itself as a “cultural brand” rather than a luxury one. Department Stores should observe and apply some of LV’s recipes to their own branding.

Louis Vuitton, a fashion house owned by LVMH, has experienced impressive growth, doubling its size in the past five years to surpass €20bn in annual sales.

Its success is attributed to its positioning as a cultural brand, rather than just a fashion label. In recent times, Louis Vuitton's visibility has been boosted by stars like Zendaya and collaborative ventures such as the appointment of entertainer Pharrell Williams to design menswear, even though men's fashion only accounts for about 5% of the brand's sales.

Despite these successes, LVMH sales slowed to a 9% growth in the recent quarter, down from 17% in the previous three months.

Regardless, HSBC predicts the brand will achieve €30bn in sales in upcoming years. Expansion opportunities in areas like perfume, cosmetics, and potentially hospitality are also on the horizon.

However, there are challenges ahead. The brand's womenswear line is perceived as weaker, and there's concern that the brand's growth could make it seem less exclusive. Recent market trends also show a softening in the luxury sector, with LVMH's share prices falling.

Louis Vuitton juggles volume and value as luxury boom ebbs

What: Shin Yoo-yeol, Lotte Group's Heir Apparent, is set to revitalise the struggling retail business.

Why it is important: Shin Yoo-yeol taking on a more prominent role in Lotte Group's retail business is a generational shift to inject fresh momentum and strengthen the company's struggling retail channels.

While specific details about his responsibilities have not been confirmed, Shin has been making more public appearances at key Lotte Group events. He attended the group's leadership meeting earlier this year, where the chairman emphasized the need to strengthen Lotte's global competitiveness. With his international experience and Japanese nationality, Shin may focus on overseeing Lotte's overseas operations. He currently holds positions at Lotte Strategic Investment and Lotte Financial and joined Lotte in 2020 for management succession.

Lotte’s third-generation heir to tighten grip on retail business

What: Marks & Spencer plans to expand the presence of its Jaeger brand by adding it to an additional 20 stores in the UK.

Why it is important: The expansion of Jaeger and the addition of new brands demonstrate M&S's focus on enhancing its fashion offerings.

M&S acquired the luxury fashion brand after its collapse in 2021, and it has played a crucial role in M&S's efforts to revive its fashion sales. Currently available in 26 shops, Jaeger products will be introduced to nine more M&S stores next month and 11 more in the New Year. M&S has been strengthening its third-party fashion lineup to compete with rivals like Next, and recently announced that Pour Moi will launch a lingerie range on its 'Brands at M&S' online platform.

M&S looks to elevate fashion offering as it sells Jaeger in 20 more UK stores

What: Amazon is testing a new feature called "Consult-a-Friend" within its app that allows shoppers to request, view, and manage friends' feedback on products.

Why it is important: The feature enhances the decision-making process as it allows Amazon shoppers to easily request and manage feedback from friends on products before making a purchase.

The "Consult-a-Friend" tool is being tested with select customers in multiple countries, including the US, Australia, Germany, and the UK. The feature aims to make sharing products with friends and family easier. Early testing shows that customers are particularly interested in getting feedback on apparel, shoes, electronics, and furniture items. Users can send products to anyone using the "share" button and toggle the "Ask for your friends' votes" button to receive feedback. Friends receive a message directing them to the Consult-a-Friend link where they can view product details and react using emojis or add commentary.

Amazon pilots collaborative shopping tool within app

What: Zalando has launched ZEOS Fulfillment, a service that enables brands and retailers to manage their logistics efficiently through a unified interface.

Why it is important: It enables brands and retailers to streamline their logistics through a unified interface, empowering them to efficiently manage their multichannel business and reach millions of customers.

ZEOS aims to empower brands and retailers by providing them with a platform to oversee their multichannel business across Europe. The service has already been adopted by over 30 brands and retailers, including Pepe Jeans and Kazar. To use ZEOS, brands and retailers simply need to send their products to Zalando's network of 12 warehouses.

Zalando's managing director for Italy and Spain, Riccardo Vola, believes ZEOS will help Spanish brands expand their presence across Europe and reach millions of customers through various marketplaces and e-commerce platforms.

Zalando unveils multichannel service