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

What: End-of-year shopping season significantly increases the risk of costly cyberattacks on retailers, necessitating enhanced cybersecurity measures and preparedness.

Why it is important: Retailers face a heightened risk of cyberattacks during the end-of-year shopping season, and they must invest in robust cybersecurity strategies to protect themselves and their customers.

The end-of-year shopping season poses a heightened risk for cyberattacks on retailers and their customers, with these incidents becoming more frequent and costly. In 2023, the average cost of a cyberattack incident rose to $1.7 million. Retailers, who often manage large amounts of sensitive customer data, are particularly vulnerable.

The impact of these attacks can be significant, disrupting operations and causing substantial financial losses. Retailers are responding by allocating a larger portion of their IT budgets to cybersecurity, though the overall investment remains lower compared to other sectors. The evolving nature of cybercrime, including the use of advanced technologies like artificial intelligence, makes it imperative for retailers to share threat intelligence and have robust response plans in place to minimize damage and recover quickly from attacks.

Tis the season for Cyberattacks

What: Flannels has taken over a flagship store on London's Oxford Street and introduced a new category called Flannels Home.

Why it is important: The Flannels campaign and flagship takeover, along with the introduction of Flannels Home, are important as they showcase the brand's ability to adapt and expand its offerings to cater to the youth market, while also creating an immersive and vibrant shopping experience.

The store takeover involves transforming Flannels X into a shoppable house party, showcasing youth-led fashion and beauty brands. Visitors can explore different sections, such as the Lounge, Garden, Bedroom, and Boudoir, featuring various fashion collaborations and curated selections. The store also includes a bar and a beauty section with makeup and haircare offerings. Additionally, Flannels Home offers a curated collection of designer homeware brands.

Flannels reveals campaign and flagship takeover, plus homewares debut

What: Wealthy Americans are postponing their trips to Paris due to the conflict in the Middle East, affecting tourism demand.

Why it is important: France has raised its terror alert to the highest level, causing the US embassy to advise citizens to be cautious while traveling and to avoid areas of demonstrations. France, being the most visited country, saw cancellations not only in Paris but also in other European capitals.

Premium class airfare sales between New York and Paris surged by 44% in the three weeks leading up to October 7, 2019, compared to the same period in 2019, but dropped to 4% in the three weeks after the attacks. Luxury hotels like the Plaza Athénée, Le Meurice, and Le Bristol experienced cancellations from US customers following the attacks.

Concerns over anti-Semitism, fear of being caught in a war zone, discomfort with chaos, and anti-American sentiment were cited as reasons for cancellations. The war in the Middle East also led to cancellations in Italy's hospitality industry and raised concerns among industry professionals.

Rich Americans cancel trips to Paris following rising conflict in the Middle East

What: The acquisition of SportScheck by Frasers Group is in jeopardy as the German sporting chain faces collapse.

Why it is important: The potential collapse of SportScheck and Frasers Group's acquisition deal exposes the significant impact of funding crises and insolvency on retail chains and their expansions.

Frasers Group, led by Mike Ashley, intended to fuel its European growth with the acquisition of SportScheck's 34-store chain. However, SportScheck's owner, Signa Holding, is experiencing a funding crisis and has filed for insolvency for its Signa Sports division. Suppliers are hesitant to do business with SportScheck, and administrators may be called in as early as Monday.

Frasers Group is exploring the possibility of rescuing the deal. Under Germany's bankruptcy laws, Frasers Group could potentially fund the collapse and acquire SportScheck through an insolvent sale. Frasers Group was also among the interested parties in the administration of Wiggle, an online bike retailer owned by Signa Sports.

Frasers’ SportScheck acquisition at risk as retailer borders on collapse

What: In Q3, Target experienced a 4.2% decline in revenue but managed to achieve significant profit gains by closely monitoring costs amid decreased consumer spending.

Why it is important: The company's flexible business model proved effective, leading to unprecedented growth in traffic and sales in previous years even though the current economic climate has forced consumers to make tough choices, resulting in delayed purchases and reduced discretionary income.

Target's net income for the quarter increased by 36.3%, exceeding analyst projections. While the company is not satisfied with its top-line trends, it remains focused on long-term growth opportunities. Target's inventory levels decreased by 14% compared to the previous year, contributing to improved productivity within its stores and distribution centers. Despite ongoing macroeconomic conditions, the introduction of new products and a strong line of owned brands have helped Target remain relevant to customers.

Target reports its Q3 results

What: Shipping fees are the lifeline of online profitability.

Why it is important: Customers are increasingly accepting to pay for shipping fees, but it needs to come with perks

The challenge of abandoned shopping carts in e-commerce remains significant, with many customers leaving their carts due to unexpected shipping costs. Recent surveys reveal that attitudes towards shipping are changing: a growing number of consumers are willing to pay for shipping, with a third of respondents indicating a willingness to pay at least $10 and older generations (Gen X and Boomers) are okay with paying $20 or more. Additionally, there's a shift in delivery expectations, with most customers now comfortable with a three to five-day delivery window, rather than two days.

Despite this, the desire for discounts persists, with only 30% of customers willing to pay full price for gifts and many expecting substantial discounts. The notion of 'free shipping' is being re-evaluated as customers recognize it’s often included in product prices. Around 75% of e-commerce businesses offer free shipping, but strategies are evolving. For example, Amazon increased its Prime membership fee and introduced surcharges for small orders to manage growing fulfillment costs.

Returns also pose a logistical challenge, with three-quarters of customers deterred by return fees. Overall, the e-commerce sector continues to evolve, balancing consumer expectations with profitability and logistical realities.

Shoppers getting used to shipping fees – as long as they get a good deal