What: The French department store will open a flagship location in the historical One Wall Street building as part of its expansion and rebranding plan.

Why it is important: As the American spending power and interest in luxury grows, Printemps’ plans to open in New York will allow the company to tap into the intense touristic flows of the city which could also raise brand awareness for when American tourists visit Paris.

The luxury retailer is planning to utilize the recently renovated and refurbished landmark space to its advantage, bringing a curated mix of brands to the 54,365-square-foot allocation across two levels in the Financial District’s One Wall Street building. The Art Deco landmark has recently undergone a $30 billion overhaul to convert the former bank headquarters into a mixed-use retail and residential tower.

Recovering from Covid and leveraging the returning power of physical retail, Printemps has more plans for overseas store openings and rebranding over the next decade. The company has also been working to grow its global e-commerce footprint, making New York ideal to capture the US while maintaining visibility. The New York location will be the second in its overseas expansion as Printemps is on track to open in Doha, Qatar, this October.

The New York store is expected to open in early 2024.

Printemps to open New York flagship

What: Uniqlo has officially launched its Re.Uniqlo Studio inside its Regent Street flagship where customers can repair, remake, reuse, and recycle their garments.

Why it is important: While the company had been offering its repair services in store since April, the new offer expands to include free alterations on selected bottoms and great alteration and tailoring services on a wider range of items.

In addition, customers will have access to elevated customization services and essential accessories will be available for customers who would like to repeat the techniques at home. Bespoke services and a range of one-of-a-kind Uniqlo garments which have already been mended will also be available for purchase.

Uniqlo will collect and donate clothing to in-need companies and all non-usable fabric will be recycled into raw materials for new clothing or energy sources. Instructional and inspirational books along with items that prolong the life cycle of clothing will also be available for purchase.

Uniqlo’s repair, remake and recycle studio flagship

What: Pinduoduo, a popular Chinese e-commerce enterprise, has released a new app intended to leverage its supplier network and compete with Shein in the fast-fashion market.

Why it is important: Temu has already been downloaded over 400,000 times, making its threat to Shein even greater.

Backed by the Chinese retail giant Pinduoduo, success will be easier for the newly released platform. The company allows groups of users to purchase goods at a lower cost, connecting merchants directly with buyers while sellers bear the shipping costs. The company’s newest app, Temu, is primarily focused on apparel, home goods and electronics. Like Shein, Temu hosts thousands of new products daily at an unbelievably low price.

Parent company Pinduoduo helps Temu through its existing relationships with suppliers, making it easier to upload new and of-the-moment styles that rival that of Shein.

Temu: Shein’s new rival

What: From September 1st to October 23rd, Tommy Hilfiger dresses in the atrium of Printemps Haussmann, in the women's store.

Why it is important: The Tommy Hilfiger pop-up features its new monogram as well as two exclusive collections in conjunction with digital events.

After a three-year absence from New York Fashion Week, the brand is working hard to celebrate its return through different brand activations. On September 11th, Tommy Hilfiger will present an interactive show linked to the metaverse.

The pop-up visually echoes its connection with fashion week through scaffolding structures, mirrors and a central podium lit by XXL lightboxes that feature giant avatars.

Tommy Hilfiger pop-up in Printemps Haussmann

What: The Economist takes stock of the new standards in the Beauty category and how DTC brands are performing.

Why it is important: DTC are attractive on paper: they are smart, lean, digitally-native and able to talk to the younger customers. But their model, adapted to a pre-Covid context, might not be able to pass the test of time without the support from older companies.

The Economist reviews how the $500bn beauty market has evolved in the recent years, with well-established groups, which have a time-honored marketing strategy and often in-house production capability in addition to a dual sales channel (wholesale, retail), are being challenged by Direct to Consumer brands.

They have been the cool kids quite for a while, as they came in with a new business model: direct online sales, lower margins, better knowledge of the customer, leaner organizations. However The Economist suggests that this might be a model adapted to a context only, and might not be relevant in the “new normal”: influencer-based marketing strategy works well to encourage initial purchases but not to repeat them, outsourced production capability might prove difficult in a world with inflation and supply-chain difficulties, and physical stores remain the place where customers purchase their products.

This might explain why new brands are being purchased (or sold to) beauty giants, who find in them interesting and cool brand names, while the brands themselves find a way to continue their expansion which might be otherwise difficult.

The truth about young beauty brands’ business model 

What: Cost inflation across grocery and general merchandise has greatly affected the retail group’s profitability with a decline of 99-million-pounds compared to its 69-million-pound profit last year.

Why it is important: Despite the loss, John Lewis will continue to support its full-time staff with a one-off cost-of-living payment of 500 pounds on top of the free food promised to employees during the holiday season.

The pandemic had artificially inflated shopping basket sizes which have since plummeted as consumers’ behaviour has shifted due to inflation. Waitrose sales dropped by 5% and operating profit fell by 93-million-pounds. Fashion however performed well over the first half driven by a return to in-store shopping, growing 25% compared to the previous year. The group’s bargain value own brand Anyday saw a 28% rise in sales as customers began to look for better deals during the later part of H1.

John Lewis is prioritizing its partners by doubling financial assistance and increasing entry-level pay by 4% which will cost 10-million-pounds in the second half. Overall, the retailer plans to invest a total of 45-million-pounds to help partners this year.

John Lewis sales did increase over the first half due to a return to in-store shopping post-pandemic, maintaining an operating profit of 295-million-pounds compared to last year.

John Lewis sees a 99-million-pound loss in H1

What: Legislative action is picking up around brands and retailers falsely advertising products as sustainable.

Why it is important: The new legal action and legislation increasing around the world advocating for transparency and validity in sustainability claims, are a serious wake-up for retailers and brands to carefully navigate their behaviour and communication.

H&M has recently been hit with a class-action lawsuit filed in New York earlier this month regarding their sustainability claims. The suit focuses on the ‘Conscious Collection’ and the misleading imagery and communication the company makes regarding recycling. H&M’s claim to recycle clothing by collecting used clothes has been addressed as misleading customers when the technology either does not exist or does not reach the scale or pace of H&M’s production.

The H&M lawsuit as well as the UK’s investigation into environmental claims made by fast fashion brands are seen as a door opening for other similar legal action to be taken. Aside from any financial outcome from potential legal battles, brands and retailers are already facing a PR storm and deteriorating public perceptions.

Other initiatives that seek to eliminate buzzwords at the product level are seen as an important step but keep customers responsible for their choices, not retailers. The recent legislation is likely to affect marketing primarily; it is unclear if it will address production policies.

Speculators foresee increased, stricter regulations but customer shopping behaviour is not expected to change until legislation attacks the supply chain directly.

Lawsuits amid fashion greenwashing crackdowns

What: The new Jown Lewis slogan (for all life’s moments) is not as disconnected as it seems.

Why it is important:  Every retailer is revamping its positioning and brand perception as the competition in the online space increasing, forcing retailers to capture an “audience”, or, as the FT suggests between the lines, inventing such an audience.

No more experience: with its new slogan, John Lewis aims to be the first “moments-based retailer”. What does this mean? If in the past customers were spending on holidays and festival, now John Lewis addresses customers who want to spend more on everyday moments to make them special.

The slogan change (the previous one was “never knowingly undersold”) was a strategic move, as it forced John Lewis to align with lower prices from the competition including online. But the FT argues that such a change is also a way for John Lewis to sell more small products more often. This is smart at a moment when inflation and consequences of the Brexit are making UK customers more price-conscious, but still willing to enjoy their moments. The FT wonders if such a strategy can work out.

What John Lewis gets right about British shoppers 

What: In celebration of its 150th anniversary, Bloomingdale’s has created a virtual store to showcase products from luxury brands and immerse visitors in digital attractions.

Why it is important: During New York Fashion Week, Bloomingdale’s is engaging clients will an omnichannel celebration that includes a virtual store and other physical events across the US that will include exclusive merchandise.

Visitors to the virtual storefront will have access to an exclusive anniversary-themed collection along with a video highlighting the history of Bloomingdale’s, video games and the ability to buy luxury products.

Bloomingdale’s virtual store for NY Fashion Week

What: South Korean retail giant Lotte Group has revealed plans to build an eco-friendly ‘smart city’ complex, along with a separate ‘smart logistics’ hub in Vietnam.

Why it is important: Along with plans for retail centres and residential spaces, the group intends to provide digital healthcare services using big data analysis and artificial intelligence.

The project will have a total floor area of 680,000sqm, five basements and multiple towers. The complex includes a shopping centre, cinema, office space, hotel, residences and apartments. Local sources stated that Lotte also plans to build an “Integrated Smart Logistics Center” in Dong Nai Province to improve logistics capacity and support Lotte’s business development in Vietnam. As for the promise of digital healthcare services, some examples of capabilities will be home care and IoT telemedicine, including remote diagnoses.

The group announced its plans to invest around 900 million USD into the project during its ground breaking ceremony in Thu Thiem on September 2nd.

Lotte Group plans futuristic smart city in Vietnam

What: Sephora announced a new subscription-based membership that allows shoppers to get same-day eligible items delivered in as little as two hours.

Why it is important: The retailer responded to a survey showing that fast delivery was the top service shoppers wanted.

The subscription, which includes unlimited same-day delivery through the site or app, costs 49USD per year.

Same day delivery subscription at Sephora

What: European, US and UK shoppers are pulling back on vacation plans due to inflation as reported by First Insight.

Why it is important: Data has shown that inflation is a key driver of deflating consumer confidence as shoppers from the EU, US and UK report increased cost of living expenses causing many customers (40%) to cut back on name-brand products.

Entertainment spending, alcohol and spirits, meat and seafood are other categories in which consumers are pulling back spending. Many respondents have stated that they are staying home to avoid spending on ‘nightlife’ related expenses. In addition, vacationing less has been a way consumers reported how they save.

92% of all respondents are concerned about the recession yet one-third are saving less.

Shoppers pull back on vacations and entertainment

What: Aqua, Bloomingdale’s private label has grown into a “full lifestyle” label and the company’s bestselling private brand.

Why it is important: Aqua is a full “lifestyle” label that offers trend-driven, diverse, and accessible women’s ready-to-wear and accessories which is a big differentiator in the market with the price point being available to all generations with no specific range.

The Aqua team consist of many people within the organization including fashion directors, creative directors, and merchandisers. Part of the label’s growth strategy is collaborations with third parties, including limited edition capsule collections, like their most recent with Maeve Reilly.

Although the label is not offered in the men’s category, they still have more opportunities in the women’s space with shoes, handbags, and jewellery. As well as plans for introducing more meaningful outerwear, intimate apparel, and pet products.

Bloomingdale’s private label, Aqua, is key to their success

What: Overseas visitors will be able to shop tax-free again after it was ended in January 2021, bringing a well-needed boost to UK retail.

Why it is important: The reintroduction of tax-free shopping for overseas tourists is expected to draw in visitors and allow the UK to properly compete with Paris and Madrid while also boosting the economy.

The chancellor’s announcement of tax-free reintegration, part of the 45-billion-pound tax-cutting mini-budget plan, comes at the perfect moment as visitors begin travelling again post-pandemic.

Overall, the retail sector is expecting the UK to gain greater standing as a top luxury shopping destination with the hopes that the reinstatement will bring more visitors and create jobs across the UK.

Tax-free shopping returns to the UK

What: To help customers with the cost of holiday shopping amid rising inflation, the retailer has changed its return policy and minimum spend threshold for click-and-collect orders.

Why it is important: This is the first time the retailer has launched such an initiative in September, answering new customer shopping behaviours caused by inflation concerns.

Customers who make purchases now have until January 28th to make returns. As well, the minimum spend for orders to qualify for click-and-collect has been lifted until October 19th.

John Lewis extends return policy & removes click-and-collect minimum

What: Two years have passed since Selfridges launched its sustainability strategy and has now released its first report on its effectiveness.

Why it is important: The company aims to have 45% of all transactions generated by one of its circularity models: resale, rental, repair.

Rental still requires a push, although resale and repairs have been quite successful. The company will continue to promote circular shopping to answer the challenge of consumer adoption. As the company has little control over its Scope 3 emissions (accounting for 95% of its overall footprint), Selfridges is also taking a category-specific approach, working with concessions regarding material tracking and altering its assortment. Starting in 2025, the department store plans to no longer stock products that do not meet its material commitments.

Selfridges committed to reducing Scope 1 and 2 emissions by 64% by 2030. Scope 3 emission reduction is set to a 30% decrease by 2030. Of these emissions, 57% comes from purchased goods and services, followed by use of sold products at 21%, capital goods at 11% and transportation and distribution at 7%.

Internally, Selfridges has appointed 300 ‘Green Warriors’ from among its staff to champion sustainable change in their teams, from organising beach clean-ups to raising awareness of new initiatives internally.

Project Earth - Selfridges Press Release

Selfridges’ sustainability initiative: Project Earth

What: Overall spending on transport, energy, school supplies, food and more, the French shopper has altered their consumption habits.

Why it is important: Inflation trends are likely to continue throughout 2023 with shoppers reducing purchases, buying more durable products, selecting timeless designs and planning their buying to coincide with sales.

OpinionWay conducted a study which revealed that 73% of consumers have reduced their fashion consumption over the past two years, with only 12% stating that they have returned to their pre-pandemic buying habits. Some habits include carefully comparing prices between brands (80%) and simply making less frequent purchases (59%).

82% of respondents are looking for clothing that is timeless and 76% are looking for clothing that transcends fashion trends. 57% of respondents are waiting for the economic climate to be more favourable to renew their wardrobe, leading retailers and brands to believe the sales season will see greater purchases. This is backed by the study results showing that 69% of consumers will wait for sales to make necessary purchases and 44% will avoid shopping altogether to avoid the temptation of buying.

Second-hand platforms appear to be ideal alternatives in the eyes of French consumers with 41% using these channels for deals. New networks of hard discounters are also appealing, as 39% of respondents report shopping through these channels.

Inflation changes French shopping behaviour

What: London-based concept store Machine-A and multi-brand retailer Smets from Brussels, are teaming up with the Selfridges’ team to open a pop-up featuring a selected range of items from emerging designers, exclusive drops, as well as pieces from Selfridges' sustainability-focused projects Project Earth and Reselfridges.

Why it is important: The project is titled ‘& Good Company’ which is focused on sharing inspiration and creativity from some of the best independent multi-brand stores. The London department store believes in supporting their businesses by offering the chance to use the Corner Shop as a collaborative retail platform.

Machine-A will bring 22 brands, 16 of which will be new to Selfridges and a vintage edit under the concept Machine-B. Smets will bring three emerging Belgian designers to Selfridges for the first time and offer a selection of design pieces, including sculptures, candles and books. As well, the retailer will bring a 27-piece archival edit of Alaïa jewellery and ready-to-wear pieces from the brand’s spring and fall 2017 collections.

Machine-A and Smets open pop-up in Selfridges for Fashion Month

What: Results show that wages and staffing are the top concerns for retailers.

Why is it important: Multimedia Plus survey reveals labour shortage is the main concern in finding good talent to hire for staff this upcoming holiday season.

65% of respondents said that recruiting is their number one issue, the better talent and the better they are trained, the better companies are able to grow and attract new customers.

The supply chain was a top challenge for 28% of retailers, 14% was onboarding new store associates, and scheduling was a top issue for 8%.

Retailers worry about lack of well-trained staff this holiday season

What: L’Oréal is launching a global program called L’Oréal Boost aimed at supporting young people’s employment.

Why it is important: L’Oréal Boost follows last year’s announcement about the L’Oréal for Youth program and the more recent US division’s plans to open a new research and innovation centre.

The project aims to give 20,000 students a year of access to on-demand digital courses from Coursera to help them improve their employability in the early stages of their careers. In addition, 100,000 people are to be offered guided digital projects through the companies’ digital tools and software.

So far, the L’Oréal for Youth program has created 18,342 work opportunities, enrolled 59,000 people in masterclasses, career-coached 18,000 young people and mentored 13,000.

L’Oréal youth employment program

What: Harrods has announced a dedicated loyalty programme, MyBeauty, as part of Harrods Rewards, allowing members to access various benefits and earn points.

Why it is important: As part of the launch event, Harrods five H Beauty locations will host DJs, masterclasses, champagne bars and beauty vending machines to celebrate the start of their long-term engagement strategy.

Customers who sign up for the rewards programme will receive 20 pounds in rewards points for their first 25-pound purchase.

Harrods beauty loyalty programme

What: Ferragamo’s hotel management company, Lungarno Collection, will open a five-star hotel in an area extending over 10,000 square metres in the heart of Milan.

Why it is important: The retailer plans to create a luxury and lifestyle hub in this central Milanese location where they will host Ferragamo’s third hotel, a gourmet restaurant, wellness centre, a huge garden, and exclusive stores.

Among the exclusive stores will be the iconic multi-brand fashion retailer Antonia, which will be their second store in Milan.

The building was built in 1564 as one of the oldest seminaries in Europe. It has been unused since 2002, and is now undergoing extensive renovation work. The project has been commissioned by architect Michele de Lucci, and the complex is expected to become fully operational by the end of 2022.

Ferragamo moves into hospitality 

What: A new study suggests that luxury brands need a coordinated approach to attract top talents and make advanced applications available to smaller players due to an increase in new technologies in the sector.

Why it is important: While luxury brands remain relatively technology-adverse, the sector is on the edge of a revolution that will see more widespread adoption of everything from artificial intelligence to blockchain and 3D imaging.

More than half of respondents plan to become involved with the metaverse and NFTs, making them by far the dominant technological trends between now and 2025, and positioning luxury brands at the forefront of the Web3 revolution. The use of 3D imaging is already widespread, with 45% of luxury firms having utilized the technology.

One of the many hurdles cited by companies is a lack of internal know-how, linked to the industry’s historic focus on design, craftsmanship and marketing, with 37% of companies saying they lack the talents to support their technological ambitions.

While most efforts are focused on client engagement, luxury firms are also investing and innovating in operational excellence, a term which covers issues such as inventory management and product traceability, and sustainable development. These have the potential to greatly reduce the carbon footprint of luxury goods.

The report identified 16 technologies and questioned executives from companies on their development plans for the next three years. Results show that on average only 2.3 technologies out of the 16 mentioned in the study have been adopted. They are testing on average 3.2 additional technologies, or plan to do so in the next three years.

This is a key moment in the technological revolution for the luxury sector and it is important to lay down the foundations today in order preserve and increase its desirability in a rapidly changing environment.

A technology revolution is coming; luxury brands must act 

What: Balenciaga launched a resale program in partnership with resale startup Reflaunt which has already partnered with Saks Off 5th, Yoox Net-a-porter, Ganni, COS, Harvey Nichols and more.

Why it is important: Balenciaga is offering customers the chance to receive higher credit in participating Balenciaga stores in Italy, France, the UK, the US and Singapore, rewarding customers for participating in circularity while also fueling new purchases.

Products can be dropped off at participating Balenciaga stores or collected by scheduled service available through Balenciaga.com.

Reflaunt offers an efficient service through handling the documentation, authentication, photography and merchandising of goods while allowing customers to list items across some 25 resale marketplaces. Reflaunt users receive credits or a cash payout depending on the brand’s directive.

Balenciaga launches resell program