What: The KaDeWe Group has been awarded the prestigious "Most Innovative Store in the World" by the Intercontinental Group of Department Stores (IGDS) at the World Department Store Summit (WDSS) in Dubai.

Why it is important: This accolade reinforces the group's position as an innovative retail icon and honours their transformative approach in the industry.

The CEO of the KaDeWe Group, André Maeder, accepted the award and expressed gratitude to the IGDS jury and the group's owners, Signa and the Central Group. The award recognizes their strategy and commitment to delivering an exceptional and immersive experience both in-store and online. The Wine & Spirits team from KaDeWe in Berlin also received recognition, ranking third in the "World's Best Team at a Department Store" category.

Previous recipients of this award include renowned department stores like Selfridges in the UK and La Rinascente in Italy.

KaDeWe Group honoured with IGDS Award

What: Dame Sharon White’s mandate will end in 2025 and the search for a replacement has been lauched.

Why it is important: Many changes have been brought to the business but so far results left analysts and consumers unconvinced. This chairman change will be challenging for the new incumbant.

John Lewis has started to look for a new chairman

What: Decathlon has introduced a buyback service in all of its UK stores as part of its sustainability efforts.

Why it is important: This initiative is part of Decathlon's broader sustainability push, which includes a rental service rolled out earlier this year.

Customers can return unwanted products to the retailer's shops and receive store credit in return. Decathlon will refurbish and resell the returned products, starting with its own-brand bicycles and expanding to other categories in the future. The scheme has already been successful in Europe, with 251,000 products bought back and resold. Decathlon aims to refurbish 15,000 bikes per year in the UK by 2025. The retailer has 1,500 trained staff members to support circular services such as rentals and buybacks.

Decathlon launches buyback service across stores nationwide

What: M&S has launched its first dedicated menswear campaign since 2015, called 'Anything but Ordinary'.

Why it is important: M&S hopes that this campaign will reinforce its journey to elevate its style credentials and challenge the existing perception of the male audience.

The campaign aims to inspire menswear customers with outfitting ideas and different ways to wear key pieces during the Autumn/Winter season. It focuses on easy-to-style smart separates, versatile wardrobe staples, elevated outerwear, and tonal dressing. It was shot at the Salford Lads' & Girls' Club in Manchester and is supported by a comprehensive marketing plan.

M&S launches first standalone menswear campaign in eight years

What: John Lewis has announced the appointment of Paul Jones as the new Head of Brand and Store Experience.

Why it is important: The appointment highlights the importance of the stores within John Lewis' omnichannel strategy and their significance to customers.

He will report to Charlotte Lock, the Pan-Partnership Customer Director. Jones is set to begin his role on January 8, 2024. His responsibilities will include developing the customer strategy for both the John Lewis and John Lewis Partnership brands, focusing on brand propositions, innovation, and store layouts. He aims to create engaging and exciting experiences for customers.

Prior to joining John Lewis, Jones worked in various head of brand roles at Tesco for 12 years and also has experience working with clients such as Harrods and Selfridges.

John Lewis taps former Tesco exec for head of brand and store experience role

What: The European Commission has given its approval to Farfetch's acquisition of a 47.5% stake in Yoox Net-a-porter (YNAP).

Why it is important: This partnership aims to accelerate the online presence of Richemont's brands and establishes YNAP as a neutral online platform for the luxury industry.

The deal, which was announced in August 2022, was also approved by the UK Competition and Markets Authority. The completion of the acquisition is still subject to certain conditions that Farfetch and Richemont, YNAP's parent company, are working towards fulfilling. Richemont plans to sell a majority stake in YNAP to Farfetch and Alabbar, its partner in the Middle East. After the deal is finalized, Richemont will hold a 49.3% stake in YNAP.

Farfetch is expected to acquire the entirety of YNAP over the next five years. In exchange, Richemont will receive Farfetch Class A ordinary shares, representing around 12 to 13% of Farfetch's issued share capital.

European Commission approves Farfetch acquisition of YNAP

What: Unibail-Rodamco-Westfield (URW) has reported a 1.9% increase in sales for the first nine months of 2023, amounting to EUR 2.78 billion.

Why it is important: The first nine months' results were a record increase, and the company raised its financial targets for the full year, indicating positive growth and potential profitability.

Footfall in URW's shopping centres increased by 6.3%, while retail sales grew by 7.9%, surpassing the period's inflation rate of 5.6%. URW aims for a recurring earnings per share of at least EUR 9.50, up from the previously expected range of EUR 9.30 to EUR 9.50. The group continues to focus on reducing its debt and repositioning its presence in major European cities.

URW releases impressive Q3 results 

What: Selfridges Retail reported a significant increase in revenue and operating profit for the fiscal year ending in January.

Why it is important: The company’s annual report gives an insight into how it was able to achieve its improved financial performance despite the pandemic and supply chain disruptions due to Brexit.

Revenue rose by 29% to GBP 843.7 million, while operating profit reached GBP 38.9 million, an improvement from the previous year's GBP 38.1 million operating loss. Sales were strong in the physical stores, particularly at the flagship store on London's Oxford Street and the Exchange Square branch in Manchester. However, the company still reported a loss before tax of GBP 37.9 million, better than the previous year's loss of GBP 121.5 million.

The loss is partially attributed to the application of accounting standard IFRS 16 'Leases'.

Selfridges faced challenges due to the pandemic's impact, including the Omicron variant and international Covid restrictions. Despite these challenges, Selfridges' new owners continue to drive the retailer's vision of reinventing retail and focusing on sustainability. The full impact of the new ownership on the company's accounts will likely be seen next year.

Selfridges has filed its January 2023 year end results 

What: Real estate giant Landsec has researched the potential of sustainable retail and its impact on real estate.

Why it is important: No player is advanced enough to do it right: sustainability can contribute to profitability by 13%.

Building a sustainable business not only benefits the planet but can also boost retail sales, according to a report by property firm Landsec and Bradshaw Advisory.

Brands located in sustainable retail spaces could see a revenue rise of up to 13% over a decade, and such venues could experience a 6% surge in footfall, potentially generating an additional GBP 100 million for local economies.

The study aimed to understand the significance of sustainable retail from the perspectives of consumers, brands, and local authorities. Public polling highlighted 'localism' as a key aspect of sustainable retail, emphasizing job creation for locals, using local suppliers, and supporting local, independent brands, especially among middle-aged consumers. Local authorities from various UK cities concurred.

Landsec emphasized the need for increased sustainability focus, collaboration with brands, and working with local authorities to address community-specific needs, thereby benefitting the environment and local economies.

Mall owner Landsec research says sustainable retail can be more profitable

What: Galeria is reportedly selling Inno, its Belgian unit (which is profitable)

Why it is important: Thought COVID consequences were over? Galleria has to sell a profitable family jewel to repay the German state.

Galeria, a German retail company, intends to sell its Belgian department store chain, Inno, which includes 16 stores and an online shop. Although the sale is planned, no concrete negotiations have started, and operations remain unchanged for Inno's employees and customers. Inno employs 1,100 people. The company's CEO, Armin Devender, highlighted Inno's strong financial health, noting a gross operating profit of over EUR 10 million in the 2021-2022 fiscal year. After facing financial challenges in 2018-2019, Inno successfully rebounded, increasing its revenue by 25% to EUR 285 million in September of the previous year. The proceeds from the anticipated sale, estimated between EUR 50-100 million, will be used by Galeria to repay German state aid, as reported by Frankfurter Allgemeine Zeitung.

Inno is reported to be on sale

What: Fenwick is looking, just like John Lewis, for new development routes.

Why it is important: Entering the restaurant business is a bold move, and raises the question to do it under the umbrella name, Fenwick, and not their restaurants name, Fuego

Fenwick is scouting for a 3,000sq ft pilot site for its Fuego restaurant, focusing on locations like Newcastle and Surrey.

While Fuego has outlets in cities like Kingston, Newcastle, Bracknell, and Brent Cross, Fenwick also operates a café-style branch in Canterbury. The company sees potential in introducing its patisserie brand, Mason & Rye, to the high street.

Restaurants within Fenwick contribute over 10% of the company's total sales, emphasizing their quality offerings, including in-house pastries for Mason & Rye. Fenwick has nine stores in the UK, with diverse F&B options in their Newcastle store and a notable vegan sushi restaurant in their soon-to-close London store.

Fenwick is eyeing standalone restaurants

What: Inside Retail reviews the recent strategic moves from Macy’s.

Why it is important: They have carried out a number of initiatives that include new store formats, Market by Macy’s, observed by retailers worldwide

Macy’s is innovating with new strategies, including the roll-out of 30 smaller “mini stores” in US strip centers over the next two years, which have already shown positive sales growth in initial trials. These smaller stores, previously named “Market by Macy’s,” offer a curated selection of products, host local events, and benefit from their proximity to high-traffic retail locations.

Macy’s has also launched a digital fashion platform, Mstylelab, in collaboration with metaverse tech platform Journee, offering users an immersive experience to explore their newest brand, On 34th.

Despite these moves, Macy’s continues to face challenges. Its Q2 sales dropped by 8.4% year-over-year, with both in-store and online sales declining. The broader retail landscape sees many classic department stores, familiar to Baby Boomers and Gen X, either closing or attempting to adapt to younger demographics. An example of an attempt to redefine the modern department store is Showfields, which struggled and filed for bankruptcy despite its innovative approach. Experts are skeptical about Macy's efforts, suggesting that while the shift towards where customers are makes sense, it might be too late for significant impact. The future will determine if Macy’s changes can revive the brand's former glory.

From ministores to metaverse, will Macy’s new moves pay off?

What: Walmart's Chief Sustainability Officer, Kathleen McLaughlin, discussed the company's ESG priorities and challenges during the 2023 Goldman Sachs Global Sustainability Forum.

Why it is important: Walmart aims to be a role model for other businesses in the realm of environmental, social, and governance (ESG) issues.

McLaughlin highlighted the importance of shifting consumption towards a circular approach and addressing challenges related to data and the political environment. Walmart's ESG efforts are focused on economic opportunities for workers and suppliers, sustainability in retail operations and supply chain, strengthening communities, and maintaining ethics and integrity. McLaughlin mentioned the company’s decision to utilise EV vehicles for its last-mile fleet but also how there are issues with getting the technology and batteries that can replace its heavy tractors due to the vehicles’ loads and distances. Walmart’s Project Gigaton initiative to reduce or avoid supply chain emissions by 1 billion metric tons by 2030 has now engaged more than 5,000 suppliers.

The company considers corporate governance and digital citizenship as crucial aspects of its international business practices and has made progress by collaborating with Pepsi on a USD 120 million investment in regenerative agriculture. The retailer recognizes its global visibility and takes into account the expectations of all stakeholders.

Walmart’s chief sustainability officer talks ESG priorities, challenges

What: Visa argues that second-hand is poised to grow given the increasing inflation and growing environmental concerns.

Why it is important: If this is the new trend, how can it become profitable for retailers? For now, no-one has found the solution.

The circular economy is gaining traction globally due to increased environmental concerns, policy drives for resource efficiency, and shifting consumer preferences towards sustainability. Factors like high inflation, evident in spikes in the UK and Australia, have led consumers to opt for second-hand goods.

Visa data reveals increased card transactions in used merchandise stores during these inflation periods. Technology, particularly digital apps, have facilitated the growth of the circular economy. For instance, there was a 200% surge in the UK's resale app usage in 2022. The fashion industry is a significant player, with the second-hand market projected to surpass fast fashion by 2029.

The sector could also create new commerce platforms and payment infrastructures. AI and blockchain will further enable the circular economy, from product lifecycle management to supply chain transparency.

As inflation promotes circular consumption behaviors, technology, coupled with a robust payment ecosystem, will catalyze the circular economy's expansion.

Fashion resale apps enable circular economy’s broadening appeal

What: Kering Group experienced a 13% decrease in revenue in the third quarter.

Why it is important: This decline reflects the ongoing slowdown in the luxury industry.

Gucci, the largest brand under Kering, saw its sales decrease by 14% on a reported basis and 7% on an underlying basis. Yves Saint Laurent and Bottega Veneta also experienced declines in revenue. The "other houses" division, which includes brands like Balenciaga and Alexander McQueen, saw a 19% decrease in sales. Despite the challenging market conditions, Kering aims to strengthen its brands and distribution through recent acquisitions and internal restructuring. The acquisition of Creed, a luxury fragrance house, is expected to boost Kering's ambitions in the beauty sector.

Kering Group revenue falls 13% in Q3

What: Marshalls is organising a two-day event called the "Good Stuff Social Club" in New York City which aims to empower women and help them achieve their goals.

Why it is important: Marshalls' goal is to provide women with resources, communities, and opportunities to create the lives they want.

It will feature workshops and discussions on topics like self-worth, financial literacy, mentorship, career development, and wellness. The event will be hosted by actress Priyanka Chopra Jones and will include experts like Vivian Tu and Keltie Knight. It is in Soho, NYC on October 20th and 21st and is free to attend.

Marshalls to host women’s upliftment ‘Good Stuff Social Club’ in New York

What: Saks and Dior have teamed up to create an immersive holiday experience called "Dior's Carousel of Dreams at Saks.”

Why it is important: This collaboration marks the first time Saks has partnered with a fashion house for such an event and can generate sales for the store as Dior’s collaboration with Harrods last year did.

As part of the collaboration, Saks will exclusively offer Dior merchandise on its website, including men's and women's ready-to-wear, accessories, maison and baby, as well as La Collection Privé Christian Dior. The flagship Saks store in New York City will be transformed into a winter wonderland, featuring a light show, a visual takeover of the facade, and an extensive holiday window display in collaboration with Dior. Additionally, Dior Parfums will have a dedicated pop-up space on Saks' beauty floor.

The CEO of Saks, Marc Metrick, expressed excitement about the collaboration, highlighting the power of the Saks Fifth Avenue brand and its partnerships with leading fashion brands. Delphine Arnault, CEO of Dior, also expressed delight and pride in the partnership, which pays tribute to the magic of the holiday season and the visionary fascination Dior had for the United States.

The holiday extravaganza will run from November 20 to January 5.

Saks and Dior team up to transform the NYC flagship 

What: The new group CEO at Macy’s believes that Bloomingdale’s will be supporting the group’s growth in the coming years.

Why this is important: Bloomingdale’s and Macy’s are going to differentiate even further to widen their customer base.

The incoming CEO of Macy’s, Tony Spring, alongside the current CEO, Jeff Gennette, revealed that the company is capitalizing on the success of its brands, including Bloomingdale’s and luxury beauty store Bluemercury.

Spring, set to replace Gennette in February, has led Bloomingdale’s since 2014 and believes in the importance of product curation and improving customer experience. He emphasized Bloomingdale's as a growth vehicle without sidelining Macy's, as both cater to different customer bases.

Macy's announced plans to expand its "small-format store strategy", increasing the presence of smaller Macy's and Bloomingdale’s outlets, given the success of the smaller Bloomingdale's branches termed "Bloomie's". Gennette highlighted Macy’s strength in holiday retail, noting beauty and gifts account for over 40% of Q4 sales.

They have already initiated strategies for the next holiday season, confident in their holiday marketing approaches.

New Macy’s CEO Tony Spring interview

What: Luis Bernardo Silva has been appointed as the new corporate people manager at Cencosud in the Latin American region, following the departure of Eulogio Guzmán.

Why it is important: Silva brings over 20 years of experience in human resource management, leading teams and driving cultural transformation in multinational companies.

He holds a degree in economics from Pontificia Universidad Javeriana and has specialized in finance at Universidad del Rosario, both in Colombia. Additionally, Silva has a master's degree in human resources from the London School of Economics and an executive MBA from the University of Quebec in Montreal.

Cencosud launches corporate people manager in the region 

What: Mango continues its digital transformation by incorporating the 'Lisa' conversational generative AI platform.

Why it is important: This platform aims to streamline processes from fashion collection development to post-sales service.

'Lisa' utilizes a conversational interface similar to Chat GPT and leverages various models, including private ones tailored for Mango and open-source models. The integration of 'Lisa' aligns with Mango's previous adoption of machine learning platforms such as 'Inspire', 'Gaudí', and 'Iris'.

Mango launches 'Lisa', a conversational generative AI platform

What: AI might have what it takes in terms of decision-making capabilities to occupy the top job.

Why it is important: Is AI a tool or a threat to retail CEOs?

A recent survey by edX revealed that 49% of CEOs believe AI could replace "most" or "all" of their duties. However, the specifics of which tasks AI would take over were not detailed. While edX's founder, Anant Agarwal, suggests AI will transform the CEO role by removing mundane tasks and allowing a focus on core responsibilities, skepticism remains about the real-world applications of such claims. While AI's introduction can ease some administrative tasks for CEOs, its more profound impact will likely be on guiding companies through AI's broader implications, managing AI-driven workforce changes, and setting ethical standards for AI use. The survey also indicated that executives knowledgeable in AI have better chances of promotion, with 85% believing their next CEO will have AI experience.

Will AI replace CEOs?

What: Macy's Inc. plans to expand its small-format store network, potentially tripling its total number of small-format stores by fall 2025.

Why it is important: Macy's aims to leverage its brand to deliver sustainable and profitable sales growth through this small-format strategy.

The company intends to open 30 new Macy's small-format locations across the United States, starting in 2024. The specific locations and timing have not been disclosed yet. These small-format stores offer a convenient shopping experience in an open environment that is approximately one-fifth the size of full-line stores, providing customers with a curated selection of products.

Over the past three years, Macy's small-format stores have achieved positive sales growth, and the company has focused on creating a unique shopping experience with convenience, curated merchandise, local events, and services. Currently, Macy's operates 15 small-format stores.

Macy’s to open up to 30 small-format stores by fall 2025 

What: Saks Off 5th has announced the appointment of Kim Miller as its chief marketing and analytics officer.

Why it is important: Saks Off 5th has been making several executive team changes to strengthen its position in the market.

Miller will be responsible for overseeing customer analytics, insights and engagement, personalisation and loyalty, growth marketing, corporate strategy, and business development. She brings more than 20 years of experience in fashion, retail, and e-commerce to the role.

Saks Off 5th names Kim Miller Chief Marketing and Analytics Officer

What: Retail keeps on facing issues when it comes to recruiting new generations.

Why it is important: It is not only about replacing departing employees but also acquiring new competencies to address the new strategic issues.

In 2018, a student in New Jersey was excited to work as a "stylist" at a clothing store, only to discover the role was more akin to a typical sales associate.

Retail sales jobs have historically been low-paying and perceived as mundane in the US. However, challenges during the pandemic, such as a tight labour market and increased resignations, led retailers to reconsider their approach to these roles. Some retailers are rebranding these jobs with titles like "brand ambassador" or "stylist" and offering more perks, but many have not substantially improved the roles or increased pay enough to attract new workers.

Retail experts stress the importance of understanding employees' needs, similar to understanding customer needs. Features like flexible scheduling, clear communication channels with management, and recognition are valuable for modern retail workers. Although wages have increased recently, more than just monetary incentives are essential for job satisfaction. Retailers are urged to be transparent about job responsibilities and to genuinely invest in improving the retail employee experience.

Why retailers still need to fix their hiring approach to Gen Z