What: The parent company of Neiman Marcus, Bergdorf Goodman, has adjusted its corporate strategy to meet the new expectations of younger generations.

Why it is important: From the top down, Neiman Marcus Group is committed to setting a standard that ensures people-driven partnerships and provides employees with an ideal work environment.

Released in early 2021, NMG remains committed to its mission to revolutionise luxury’s impact through environmental social governance (ESG) by making it a cornerstone of its growth and transformation strategy. ‘Climate Change’ and ‘Workforce Diversity’ are core pillars for the goals it has set out to accomplish by 2025.

Neiman Marcus committed to environmental social governance

What: Nike is set to release hoodies and crewnecks using its new sustainable material on September 8th.

Why it is important: Nike has famously cut down on production waste and improved manufacturing processes through its previous innovations such as Dri-Fit and Flyknit. Now, its newest fibre, Forward, could cause another shift in sportswear and garment production while reducing the company’s overall carbon footprint.

The non-woven fibres cut out some of the most carbon-intensive steps in traditional clothing production by eliminating the yarn spinning and weaving process. Similarly, to how surgical masks are created, Nike feeds a web of fibres into a machine containing a bed of needles that punch the fibres together to attach them. The resulting material is industrial and thin yet stiff creating a more rigid drape than a typical sweatshirt material.

The fabric has a higher warmth-to-weight ratio and a carbon footprint that’s 75% smaller than the brand’s comparable knits. The initial release is undyed, cutting out the water and harsh chemical used. The colour of the fabric will be influenced by the fibres fed into the machine.

While the new manufacturing process enables Nike to use a variety of recycled materials, the first release is made of 70% recycled polyester, a known polluter. Despite this, Nike has tried to offset the fibre choice by not using any zippers or extra trims, making it easier to recycle. According to Nike, the Forward fabric remains more sustainable and sheds fewer microfibres than knit fabrics also comprised of polyester.

Nike’s newest material innovation: Forward

What: Following the announcement of the death of Queen Elizabeth II on September 8th, the UK will enter a morning period that is expected to cost the country billions.

Why it is important: London Fashion Week is still expected to take place from the 16th to the 20th of September, with Burberry bowing out as a mark of respect and the British Fashion Council ceasing communications during the ten-day mourning period.

The funeral is expected to take place on the 18th or 19th which would mean store closures across the country as well as fashion show rescheduling. Prior to the news of the Queen’s death, London was preparing for its biggest fashion week since before the pandemic.

Selfridges has closed its doors since the announcement of the Queen’s passing and will reopen this weekend. It is likely that the other major UK department stores will follow their lead.

The ten-day mourning period will cause serious business delays and closures leading to lost revenues and logistical hiccups that may cause a cascade of issues for Fashion Month and British department stores.

UK business to halt following the Queen’s death - Source 1

UK business to halt following the Queen’s death - Source 2

What: At the Goldman Sachs 29th annual Global Retailing Conference Macy’s, Nordstrom, Shopify and Capri point to the opportunities and threats of the market right.

Why it is important: Macy’s sees occasion-based categories doing especially well right now and says promotions will be high this fall. Nordstrom continues to see a lot of strength in their core categories, like women’s apparel, while their inventory excess is going to take a couple of quarters to get through.

Macy’s is looking to new tools involving a more scientific approach to pricing, including markdown optimization , by style, category, store, and channel, as well as personalization.

Nordstrom’s private label business has been poor considering there has been a leadership change along with decreased inventory compared to the first half of the year.

Shopify says the e-commerce growth curve is back to where it was in 2019 but with a higher base, and projects hitting 7 million USD by 2025.

Nordstrom and Macy’s present challenges at Goldman Sachs Global Retailing Conference 

What: The Dutch department store has been hit stronger than expected during the Covid-19 pandemic

Why it is important: De Bijenkorf is part of the Selfridges group, recently acquired by Central Thailand and Signa. Analysts wonder if the new owners will solely focus on the jewel of the crown (the Selfridges London location) or if they will also helping the other ailing brand names such as De Bijenkorf or Brown Thomas.

The Dutch department store De Bijenkorf reported an operating loss of €33.3m in  2021, in spite of an increase in sales of +10%. Higher management attributes this poor performance to rising costs and Covid-19-related closures during the 2021 winter. However, they are confident that 2022 will be much brighter in terms of financial performance.

De Bijenkorf admits losses for the second year in a row 

What: To reward environmentally friendly behaviour by producers, the French government is working to establish a system which supports sustainable companies.

Why it is important: The proposal is set for review by industrialist representatives NGOs and the public to decide on the future of textile production by setting aside 600 million to promote the repair, reuse and recycling of clothing and textile waste. 350 million has been set aside for benefiting eco-designed products via bonuses.

The government is proposing five avenues: bonuses for more ‘virtuous’ products, reducing the cost of repairing textiles, developing new solutions for collecting used textiles, financing the sorting and repair of textiles and setting up a French recycling sector.

French government proposes sustainable fashion bonus system

What: The activewear giant will be opening their first ever permanent brick-and-mortar store that will include a sweat room, fitness advice experts, a Joe & the Juice, and more.

Why is it important: Not only will this store be a place to buy apparel, but also a place for their customer to be a part of a community and experience the essence of Gymshark.

The company is going alongside a lot of other direct-to-consumer brands who have begun opening stores or going into wholesale, which continues to confirm the trend.

The retailer says that they will be offering around 30 classes per week in their ‘Sweat Room,’ which doubles as a “stage” for bigger events like their Sunday Brunch events featuring a professional guest.

‘The Pro Bench’ section will be available to anyone wanting to book an appointment with in-store professionals who can advise on topics from personal training to mindset. ‘The Hub’ will be a space for the community to come together for workshops, panels, and more.

Gymshark Regent Street will open next month

What: China, the world’s leading producer of footwear has Vietnam right behind them in second place producing over 1 billion pairs of footwear each year.

Why it is important: New agreements between Vietnam and Europe (the EU-Vietnam Free Trade Agreement, EVFTA) have made importing easier and less costly, as well as a similar agreement with North America - The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) - has boosted Vietnam's footwear exports to Canada and Mexico.

New data from Research and Markets show Vietnam's footwear exports to the EU account for the largest proportion of total exports.

Nike and Adidas have both chosen Vietnam as their main production base because of lower costs. Nike with more than 100 suppliers in Vietnam and Adidas with 98% of its own-brand footwear produced in Vietnam.

#1 leader in footwear: China or Vietnam? 

What: Bloomingdale’s and the Fashion Institute of Technology are partnering in launching initiatives to raise money for educational programs and future-oriented projects to bring sustainability to the forefront of the fashion industry.

Why it is important: Throughout the year, Bloomingdale’s will organize and host various online and in-store events with the goal to raise 2 million USD for philanthropic endeavours.

The collaborative initiative will be used to launch educational and mentorship programs, open innovation labs, sustainable fashion showcases and more. The department store also launched ‘b the change’ a social purpose and philanthropic platform centred around sustainability initiatives, inclusivity and innovative educational programs.

The goal of the partnership is to create new spaces and resources that support teaching, learning and research while offering activities to educate students, faculty, alumni, industry partners and the public about sustainability.

Bloomingdale’s & FIT’s sustainable innovation fund

What: The Korean government is lifting quarantine restrictions for tourists leading to sales recovery for department stores and retail centres.

Why it is important: Since the lift of COVID travel restrictions on tourists visiting Korea, the number of visitors jumped from 80,000 to 260,000 at the start of 2022, to now 400,000 just in September.

While the pandemic caused a 70% drop in tourist shopping, the Hyundai Department Store has seen a 198% year-over-year increase between July and August. In the second half, the department store saw a 129% increase year-over-year for tourist shopping.

To capitalize on the increased traffic, Hyundai is collaborating with local entertainment firm HYBE to host a K-pop event at its Yeouido brand. Lotte Department Store is also taking steps at its main store in Myeong-dong to prepare for the increasing number of international shoppers.

Reports from retailers have shown that foreigners mainly purchased cosmetics and fashion items. Theirs in each category increased 218% and 233%, respectively, in July.

Korean department stores recover as tourism returns

What: Nordstrom in New York has launched “New New York” Center Stage, a monthlong event at the 57th street flagship, showcasing local talent in efforts to recover from the pandemic.

Why it is important: To rebuild clientele after the pandemic, Nordstrom is showcasing exclusive capsules, fine jewellery, and culinary classics.

In the “centre stage” in the middle of the flagship’s main floor, Nordstrom has begun featuring exclusive capsules with the theme “power dressing.” Each designer had a different take on the theme, with a range of traditional suits to colours and patterns.

A selection of fine jewellery is showcased, and the American Bar is coming to the Nordstrom flagship for a month. They will take over the 3rd floor with their culinary and cocktail classics.

The department store’s flagship on 57th street opened in October 2019, just weeks before the start of the pandemic. In August 2019, before the opening, the flagship raised awareness with ads of New York City street scenes and lots of fashion throughout its 320,000 square foot space across seven levels. After the opening, it caused lots of traffic until the pandemic forced it to close until June 2020. Since the reopening, the store has seen traffic steadily building.

Nordstrom is rebuilding clientele post-pandemic

What: The celebration places playful pop-ups throughout the store that use the signature orange colour and which are filled with limited edition products.

Why it is important: Through fun store animations, limited edition products, experiences in beauty, F&B and even a theatre event, Le Bon Marché is celebrating its 170th birthday with an unconventional and immersive celebration for its customers.

Brands including Acne Studios, Roger Vivier, Cartier, Chloé and Moynat have designed orange ready-to-wear, bags and shoes, especially for the anniversary event. The spirit of celebration spreads throughout the store with a banquet table of colourful tableware designs, a La Fabrique Popcorn stand, a coffee bar run by Le Café Nuances, a maze and tombola, a Kure Bazaar nail art bar, a Kevin Murphy hairstyling station and a makeup bar.

The highlight of the celebration is the weekly immersive theater performance staged across the store on Friday and Saturday nights from Sept. 2 through Dec. 30. Some 30 actors will recreate the story of founders Aristide and Marguerite Boucicaut, who famously helped inspire French author Émile Zola’s 19th-century novel “Au Bonheur des Dames."

Le Bon Marché’s 170th anniversary: ‘Orange You Glad’ pop-up

What: Selfridges has announced the continuation of its partnership with Kidswear Collective and the expansion of the resale products into its other locations.

Why it is important: The concept will be coming to Selfridges’ Birmingham, Manchester and Trafford stores with each location carrying clothing, footwear and accessories for kids ages 0-14. An e-commerce edit will also become available.

The pop-up began in the Oxford Street flagship store’s kidswear department as part of Selfridges’ Project Earth initiative.

Selfridges renews kidswear resale platform partnership

What: The Jing Daily reflects on the meaning of a retail icon closure in Hong Kong

Why it is important: Retail is not dead in the city, on the contrary, the current crisis provides some fresh air for a reset, even if this means that some iconic locations have to close (just like what happened in other markets such as the UK).

Joyce has announced earlier during the summer that it would close its iconic Central location in the heart of Hong Kong. For Jing Daily, this does not mean that Hong Kong is doomed as a retail destination. For instance, luxury brands have decided to seize the opportunity to invest in bigger flagships stores. Similarly, fashion operators have decided to open new stores in key locations while expanding their offering, such as Sweaty Betty and Whistles.

Analysts and observers believe that the low rents (they are at their lowest since 2003) provide a healthy correction and allows the Hong Kong scene to regenerate, in order to maintain its distinction with Mainland China as well as the rest of the world.

What the closure of Joyce Central means for retail in Hong Kong 

What: Harrods has unveiled a new men’s grooming, fragrance and sunglasses destination on the second floor of its Knightsbridge department store.

Why it is important: The new space offers a new men’s proposition, catering for the first and final steps of a daily routine, creating a one-stop-shopping experience, including the largest men’s sunglass destination in Europe, alongside skincare and fragrance products.

The space also features a private room for customers to try on sunglasses or use the ‘Smart Shopper’ screen which allows for digital try-on. In addition to the sunglass offer, men’s grooming, skincare products and fragrance are designed to complement the Adam Grooming Atelier service also offered on the second floor.

There are several new brands coming to Harrods, including Retro Super Future, Dita, Cazal, Prada, Cartier, Oliver Peoples and Ray-Ban.

Harrods’ new men’s destination

What: After almost 20 years as managing director, Anne Pitcher announced her departure in addition to the completion of the reportedly 4 billion pound deal for Central Group and Signa Holding to jointly take over Selfridges and its portfolio.

Why it is important: Central Group and Signa Holding plan to create a leading luxury omnichannel platform and reshape luxury retail through the acquisition by updating the F&B offers, integrating the e-commerce platforms and redeveloping the hotel sites.

The deal includes the Selfridges Group’s portfolio made up of 18 department stores, including Selfridges in London, Manchester and Birmingham. As well as locations de Bijenkorf in the Netherlands; Brown Thomas and Arnotts in Ireland, and their associated e-commerce platforms and the properties in London, Manchester and five locations in Ireland. The Selfridges’ portfolio will be integrated with Central and Signa’s combined existing portfolio of 22 luxury department stores and two new stores opening soon in Dusseldorf and Vienna.

Anne Pitcher will remain on the leadership team until the end of the year to ‘ensure a smooth integration.’

Anne Pitcher resigns as Selfridges acquisition is finalized

What: Balancing core customers and web3 clients is an important part of ensuring a successful NFT drop, but that’s not all.

Why it is important: The best NFT projects have several things in common across creativity, audience appeal and value.

Brands that only see NFTs as a marketing stunt are likely to fail as they ignore the barriers to entry that core customers face when purchasing NFTs. Web3 natives also see low value in projects that are simply marketing ploys as they lack long-term value and utility.

Incorporating NFTs into the business model by addressing the long-term brand-building value offered to customers will be the most beneficial to companies looking to enter the space. This is demonstrated in the struggle to sustain interest in collectables which are typically virtual renderings of clothing.

Most successful NFT drops offer more utility and value, such as experiences linked to holding the NFT. Tickets to fashion shows have proven to not be enough to entice buyers. The NFT does not have to yield a financial profit but should justify the cost, whether that is through letting holders claim physical goods or offering future rewards. In the case of Tiffany’s NFTiffs, holders had the ability to buy a unique item made with luxury materials and craftsmanship that was not accessible to the public.

The promise of future rewards can also appeal to buyers if they believe they will receive more value over time compared to the initial price of the NFT. The market remains niche which is why many brands have seen better results by appealing to crypto natives, but this should still include appealing to core customers and maintaining the brand’s storytelling.

Loyalty programmes can certainly boost buyer appeal, but brands are warned about overpromising and underdelivering. Partnerships with established NFT series such as the one between Adidas and Bored Ape Yacht Club have also been proven to be helpful in entering the market.

Measuring success remains a challenge due to the impossibility of comparing different projects which have been released with various prices, goals and strategies. A thought-out marketing plan that includes multiple “crescendo moments” keeps holders and buyers engaged as well as maintains reliability in the potential increase in value.

NFT drop do’s and don’ts

What: Prada, Tiffany & Co., RTFKT and other brands are using NFTs as a way to sell physical products to specific customers based on the NFT they hold.

Why it is important: Different strategies have emerged in the growing NFT market with fashion companies creating digital twins, using token-gating, and targeting specific NFT holders.

Tiffany & Co. recently announced their NFTiffs for CryptoPunks holders offering the ability to purchase an exclusive pendant costing 30 Eth or 50,000 USD at current conversions. Buyers of the pendant will receive an NFT resembling the physical item.

Many other brands like 9dcc, Dolce & Gabbana, and Prada are linking NFTs with physical products. This is seen as an opportunity to engage loyal customers and release physical goods. Buyers who receive a physical product are predicted to repurchase by receiving access to future sales through the NFT. Some criticize this release model as a pre-order program with unnecessarily complicated steps for the average consumer.

The reliability of blockchain in providing an open infrastructure for anyone to use is leading the argument against using emails and traditional records which could accomplish the same abilities as NFTs today.

Fashion using NFTs to sell exclusive physical products

What: Return of in-person events, such as weddings, are increasing menswear sales for occasion wear.

Why it is important: Despite inflation concerns, menswear retailers are reporting positive reports on men’s apparel sales for special occasions and work wear as the post-pandemic world begins to normalize.

A surge in in-person events caused a lot of men to update their wardrobe after lockdown restrictions have lifted and the shopping highs appear to be continuing in the special occasion categories as events such as weddings increase. Merchants are expecting strong sales to continue at least through the second half. Still, some are cautious after over-purchasing, leaving them with plenty of inventory to sell through. Consumer pull-back remains a concern because of the ongoing pandemic stress, inflation and tensions overseas.

Tailored clothing and neckwear categories have been performing well as men prepare for holiday events and weddings. The return to work has translated into increased sales around hybrid pieces such as sports coats and pants that can be worn with sports shirts or sweaters while remaining comfortable.

Another cause for an increase in professional wear has been demonstrated by recent graduates buying professional and sophisticated clothing for job interviews and new employment.

Positive outlook for men’s occasion dressing

What: The Frasers Group plans to continue its luxury department store expansion plan with three new Flannels flagship openings.

Why it is important: Following the opening of Flannels in Sheffield, Meadowhall, Leicester Fosse Park and most recently in Liverpool, the Frasers Group moves forward to open three more flagship stores in Leeds, Cardiff and Gateshead’s Metrocentre.

Despite the current economic pressures causing other retailers to cut back, Frasers is confident in the luxury demand in untapped markets, motivating the continuation of opening luxury retail locations across the UK. Recent results from Frasers Group have highlighted Flannels as being a strong growth driver for the firm.

Frasers Group plans new Flannels store openings

What: Tommy Hilfiger is moving into a “360°” resale program in the US in partnership with ThredUp.

Why it is important: The resale service offers loyalty rewards customers can use in the brand’s network of stores or on the sale platform by providing a simple method completed through digital services eliminating the need to bring clothes in-store.

Customers will be able to receive credit for purchases with Tommy Hilfiger by printing shipping labels via a dedicated portal to return men's and women's products stamped Tommy Hilfiger, but also products of any brand when it comes to women's and children's clothing.

The partnership is a step toward Tommy Hilfiger’s goal to make the brand fully responsible by 2030 by incorporating circularity into the product life cycle.

Tommy Hilfiger launches second-hand program with ThreadUp

What: Luxury brands continue to open flagship stores on the platform leading to positive outlooks for the Chinese e-commerce platform.

Why it is important: JD.com surpasses expectations and demonstrates omnichannel strength through continued luxury brand partnerships and the opening of offline stores in five major cities in China.

The second largest Chinese e-commerce platform after Alibaba, JD.com logged a 5.4% increase in net revenue beating analysts’ average estimates. Income from operations for the period was 3.8 billion renminbi, or 555.1 million USD, compared to 300 million renminbi for the same period last year. In comparison, JD.com’s rival Alibaba has reported a plunge of 53% in net income.

JD.com beats Q2 estimates

What: ‘The Good Store’ is a sustainable department store focused on bringing a new retail concept focused on reuse and refurbishment to London.

Why it is important: The Good Store has a range of plastic-free and sustainably sourced products, plus educational events and services to guide consumers in reuse and repair to improve London’s circular economy while supporting social enterprises.

Opened on South Molton Street in Mayfair, London, The Good Store is a 6,000 sq ft department store that carries a selection of sustainable products and brands across clothing, accessories, health and beauty, furniture, homeware, tech and books. The concept was created by Groundwork London, part of a group of charities that work to mobilize practical community action to fight poverty and preserve the environment.

All profits are reported to be put back into the social reuse programmes so that the store can continue to bring waste back to life. More information can be found on the website: https://thegoodstore.uk/

Sustainable department store opens in London 

What: Nordstrom soberly looks to the second half of 2022 with decreased guidance following their most recent report.

Why it is important: While Nordstrom has seen solid Q2 earnings, the decelerating consumer demand has led the company to lower its 2022 forecast.

The report is viewed by media outlets as more hopeful than Target, Kohl’s and Macy’s reports that showed inventory gluts and revised downward forecasts for 2022 overall. The Nordstrom offering of higher-end merchandise and apparel for office work, special occasions and going out has been seen as a benefit to operating at a stable level during the economic downturn.

Nordstrom highlighted capital investments, primarily in supply chain and technology capabilities, and priorities in reducing leverage and returning cash to shareholders. Net sales in the second quarter reached 3.99 billion USD, a 12% increase from 3.57 billion USD in the year-ago period.

Nordstrom revised its 6% to 8% revenue growth to 5% to 7% for 2022 overall.

Nordstrom reports 12% total company sales increase