What: John Lewis chairwoman Sharon White expressed concerns about the safety of store staff due to an increase in organized gangs targeting high-value items.

Why it is important: The rise of organized gangs targeting high-value items and the lack of police response poses a threat to the safety of store staff and results in substantial financial losses for retailers like John Lewis.

White stated that the lack of police response has reduced the fear of punishment for these criminals. The rise in shoplifting this year has cost John Lewis an additional GBP 12m compared to last year. White, along with other retail bosses, is calling for tougher enforcement on shoplifting and the classification of assault or abuse of retail workers as aggravated offenses. She also mentioned that there has been no noticeable increase in police response to shoplifting despite retailers' demands.

The government recently launched a Retail Crime Action Plan to combat shoplifting. However, White believes that the lack of response signifies a "profound break in the social contract" for both the public and businesses.

John Lewis boss fears for store safety as ‘organised gangs’ turn to shoplifting

What: Netflix is planning to open physical stores across the globe by 2025, offering restaurant areas, souvenir shops, and immersive shows.

Why it is important: The move towards physical stores is seen as a logical strategy to further engage fans and expand the Netflix brand.

These stores, called "Netflix Houses," aim to promote Netflix content and provide a mini-Disneyland-like experience. The platform has previously opened pop-up stores and immersive experiences inspired by its series, but these new stores will be permanent establishments. Currently, only two stores are planned in the United States, but more will appear in major cities worldwide. The restaurants in these stores will offer dishes inspired by Netflix series and upscale culinary experiences.

Netflix to open permanent physical stores 

What: Private labels are growing in US groceries to the expense of international brands.

Why it is important: Private labels are not only all about price point, but also retailer’s brand expression.

Casey's General Stores, a Midwest-based convenience chain, has observed a shift in customer preferences from well-known brands like Frito-Lay to its cheaper store-brand options due to inflation and other economic pressures. Over the past year, the sale of Casey's in-house chips has risen, reaching 25% of all chip sales this summer. The CEO of Casey's, noted that as inflation increases, customers are more willing to try less expensive alternatives, especially if they are displayed alongside pricier brands.

This trend is reflected nationwide. Large food companies, which dominated market share during the pandemic, are now competing with growing private-label brands. The share of grocery dollars spent on private-label foods and beverages has increased from 18.7% pre-pandemic to 20.6%. Other research indicates that private labels are securing significant market shares in categories like canned vegetables, cheese, and coffee.

Economic pressures, including resumed payments on federal student loans, rising credit card and mortgage rates, and the end of increased food-stamp payouts, are pushing customers towards more economical choices. A study by McKinsey revealed that two-thirds of consumers were opting for cheaper grocery items in July, a trend especially pronounced among households earning under USD 100,000 annually.

Big brands have begun to react by offering sale prices on certain products. Still, the expansion of private-label goods signifies a larger shift in the grocery landscape, with competition intensifying due to mergers like that of Kroger and Albertsons and the US entry of discount chains like Aldi. The improvement in the quality of store-brand products and the positive reviews on social media platforms are driving their popularity.

Retailers, such as Aldi and Wegmans, are emphasizing the quality of their private-label offerings while also aiming to cater to a broad range of customers, from budget shoppers to gourmet enthusiasts. They are also looking to offer unique products not available from national brands.

In summary, rising costs and economic challenges are pushing consumers towards more affordable grocery alternatives. This has led to a surge in the popularity and market share of private-label products, prompting retailers to expand their in-house offerings and compelling established brands to reevaluate their pricing strategies.

In the US, rising prices make the fortune of food private labels

What: Discretionary spending has significantly increased above pre-pandemic levels especially in wealthy luxury shoppers thanks to increased liquidity and “revenge spending”.

Why it is important: Understanding the factors driving increased discretionary spending is crucial for economic growth and luxury brand strategies.

It is predicted that luxury spending growth will eventually moderate and return to a cyclical pattern due to consumers starting to sober up from the post-pandemic euphoria and adjust their spending habits accordingly. 
In the last ten years, the modern luxury goods business has been significantly more focused on reconnecting with consumers at the top of the food chain through a variety of limited editions, VIP facilities, and events. At most brands, the top 5% of customers account for more than 40% of sales.The rising income and wealth inequality contribute to increased spending power among those at the top of the socio-economic pyramid. It argues that the desire for luxury goods is universal and that luxury brands are expanding into lower-price product categories to attract a wider range of consumers.

Luxury shoppers are relaxing on their revenge shopping habit 

What: Discretionary spending has significantly increased above pre-pandemic levels especially in wealthy luxury shoppers thanks to increased liquidity and “revenge spending”.

Why it is important: Understanding the factors driving increased discretionary spending is crucial for economic growth and luxury brand strategies.

It is predicted that luxury spending growth will eventually moderate and return to a cyclical pattern due to consumers starting to sober up from the post-pandemic euphoria and adjust their spending habits accordingly.
In the last ten years, the modern luxury goods business has been significantly more focused on reconnecting with consumers at the top of the food chain through a variety of limited editions, VIP facilities, and events. At most brands, the top 5% of customers account for more than 40% of sales.The rising income and wealth inequality contribute to increased spending power among those at the top of the socio-economic pyramid. It argues that the desire for luxury goods is universal and that luxury brands are expanding into lower-price product categories to attract a wider range of consumers.

Luxury shoppers are relaxing on their revenge shopping habit 

What: Fraser sues Morgan Stanley for an allegedly unnecessary request made by the bank which led to subsequential losses.

Why it is important: Such legal battles are often not public, especially when they involve major retailers.

Frasers has approached a New York court, requesting Morgan Stanley CEO James Gorman to provide evidence for its UK lawsuit against the bank concerning a near $1bn margin call related to Hugo Boss trades. Frasers claims Morgan Stanley acted in bad faith when urging them to close derivative positions in Hugo Boss. Frasers contends the bank wrongly imposed a $995mn margin call in 2021, resulting in significant losses and additional costs. The company alleges the bank's actions were arbitrary and in breach of contract. Morgan Stanley counters that their decision was based on risk assessment and standard practices. The situation followed the 2021 Archegos Capital Management collapse, after which Morgan Stanley appeared to misjudge Frasers' characteristics with those of Archegos. Frasers insists Gorman reveal his knowledge about the bank's actions, referencing a previous CNBC interview as potential evidence.

Frasers in legal fight with Morgan Stanley

What: Primark expects higher profits thanks to the Barbie T-shirt and price increases.

Why it is important: The optimistic outlook on profits gives insights into the company’s health and the impact of films in the fashion industry.

Primark's like-for-like sales in the UK increased by 7% despite heavy rainfall, with flagship stores benefiting from the return of tourists and day trippers to big cities. The company announced 7% price rises for the summer, with further increases expected in the autumn and winter. Primark's full-year sales are forecasted to be 15% ahead of last year, with the UK contributing to 11% growth and Europe 18%. Makeup and moisturizers are also selling well for the clothing chain. Primark's UK trial of click-and-collect services has been extended to include womenswear. The group's profit margins are rising due to eased costs for materials and freight, and Primark has implemented selective price increases while reducing prices on certain kids' clothing items.

Primark predicts bigger profits after strong Barbie T-shirt sales and price rises 

What: The National Retail Foundation buys the Reverse Logistics Association.

Why it is important: NRF's acquisition of RLA demonstrates their dedication to sustainability and their desire to help its members achieve a holistic circular economy.

This acquisition is aligned with NRF's commitment to sustainable practices and aims to strengthen its position in the industry. Reverse logistics involves managing the supply chain to handle the return of goods from customers to retailers, distributors, or manufacturers. The need for reverse logistics has been on the rise due to the increasing popularity of online shopping and product recalls. RLA recognizes the significance of reverse logistics in the circular economy and its crucial role in sustainability initiatives.

The two organizations offer valuable information, conferences, educational forums, and networking opportunities to their members. Member companies of RLA include Target, Amazon, Best Buy, Walgreens, JKA Logistics, Kroger, ThredUp, Radius, HP, and more. Both RLA and NRF have a significant overlap in membership, including companies like Costco, Target, CVS, Home Depot, Kroger, Burlington, and Macy's.

NRF acquires the Reverse Logistics Association

What: John Lewis is adding 20 new fashion brands for the autumn/winter season.

Why it is important: The fashion category was up in double digits for John Lewis last year and could grow even more with its investments into more brands.

The new additions will be launched next week and include Olivia Rubin, Sister Jane, Vivere, and Batsheva x Laura Ashley. The total offer of John Lewis post the additions will be 129 brands.

The company aims to offer something novel and different to the products that customers can find elsewhere.

John Lewis adds more new fashion brands to line-up

What: J.C. Penney faces declining sales and profits in Q2 amidst challenging retail landscape.

Why it is important: The results highlight the challenges faced by the company and the need for a significant transformation in the ever-changing retail landscape.

J.C. Penney's second-quarter net sales declined by 10% to USD 1.6 billion, while total revenue, including credit card revenue, fell by 10% to USD 1.68 billion. Digital sales increased as a percentage of total sales, but the exact amount is unspecified. The merchandise margin improved by 70 basis points, driven by strong performance in kids and home categories. Store visits also increased by 350 basis points, while inventory decreased by 14%. However, net income for the quarter plummeted by 65% to USD 36 million, and EBITDA for the first half of the year dropped by 56% to USD 147 million.

J.C. Penney is working on a billion-dollar turnaround strategy amidst a challenging retail environment, especially for department stores, as consumer discretionary spending faces pressure. The company's declining sales highlight the need for a significant transformation to address both internal and external factors impacting its performance.

J.C. Penney announces Q2 results 

What: Lotte Mart, a Korean supermarket chain, is now planning to have foreign-friendly zones in its stores.

Why it is important: the purpose is to appeal to tourists, which is no longer the single prerogative of local luxury and fashion boutiques as well as department stores.

Lotte Mart, a prominent supermarket chain in South Korea, is introducing special "Must-Haves of Korea: K-Food" shopping zones tailored for foreign visitors. Initiated at its Seoul Station branch, which saw about 30% foreign footfall this year, the 20-meter-long zone is set to expand to eight other outlets near tourist hotspots by year's end. This includes locations at Gimpo International Airport, Lotte World Tower, and the Jeju island. This initiative responds to the increasing number of foreign travelers, particularly since the endemic and the revival of Chinese group tours. The Seoul Station branch also offers luggage storage, currency exchange machines, and has restarted its thrice-weekly international shipping service since May.

Lotte Mart is now preparing for the return of tourists

What: Walmart plans to increase the involvement of its employees in last-mile deliveries.

Why it is important: Walmart will be able to enhance its delivery capabilities and keep up with the surge in online ordering.

Currently, the number of deliveries made by Walmart associates is small in comparison to those handled by independent contractors, particularly through the Spark Driver platform. However, as Walmart expands its last-mile network, it intends to own more vehicles and have employees deliver more orders. The company has previously experimented with using store employees for deliveries but ended the pilot program in 2018.

Walmart wants employees to make more last-mile deliveries

What: H&M has joined fellow fashion giants Zara and Boohoo in charging customers for returning items purchased online.

Why it is important: The implementation of this fee is part of a growing trend in the retail industry to address the issue of excessive returns and promote responsible shopping practices.

The policy is a GBP 1.99 charge for returning items purchased online, although returns remain free for H&M members. This change was made with the aim of discouraging bulk buying and excessive returns by customers. It is worth noting that several other retailers, including Zara, Boohoo, Uniqlo, and Next, also charge customers for online returns.

H&M joins Zara and Boohoo in charging for online returns 

What: 85% of On Running brand is now made of recycled polyester, with the goal of reaching 100% by 2024.

Why it is important: They are also on the way of addressing 55% of their Scope 3 emissions, while keeping on growing.

Swiss athletic brand On is making strides in sustainability by increasing its use of recycled polyester in products to 85% last year, with the goal of reaching 100% recycled polyester and polyamide by 2024. On has also reduced its CO2eq emissions per unit of value added by 12% compared to 2019. The brand aims to achieve a 46% absolute reduction in its Scope 1 and Scope 2 emissions and a 55% economic intensity reduction in Scope 3 emissions by 2030. Although it's slightly behind on its Scope 3 emissions target, On is making significant progress by using more recycled materials in its products. Additionally, 30% of materials used by On in 2022 were fossil-free, and 64% of materials used in apparel and accessories were fossil-free.

The brand also operates sustainability initiatives such as a subscription-based circularity program and a re-commerce program. Despite its sustainability efforts, On reported record quarterly growth in net sales.

On running shoes is taking leaps towards sustainability

What: John Lewis Partnership is reportedly in talks to raise GBP 150 million through a sale and leaseback deal for 12 Waitrose supermarkets.

Why it is important: The potential sale and leaseback deal could help raise significant capital for the company's turnaround plan amidst challenges in securing additional funding.

The properties, predominantly located in the south of England, have 20-year inflation-linked leases. While CBRE is acting as the property agent, there is no certainty that a deal will take place. The news comes as John Lewis Partnership faces challenges in raising additional capital for its turnaround plan. Chairwoman Sharon White cited high inflation and the "cost-of-living crunch" as hindrances to the plan's progress.

John Lewis eyes GBP 150m sale of 12 Waitrose stores

What: Saks launched its fall 2023 campaign to showcase different brands and styles as well as feature diverse talents.

Why it is important: The fall campaign highlights latest trends for consumers as well as expands the company’s advertising strategy which in turn promotes the Saks’ fashion offering and enhances customer engagement.

The fall 2023 campaign coverage can be found on The Edit, Saks' online editorial hub, as well as on their social media, and print ads will be published in publications such as Vogue, Harper’s Bazaar, The New York Times, and The New York Times Style Magazine.

To enhance the shopping experience for its customers, Saks has introduced Curated Shops on Saks.com. These curated shops offer different categories like 'Shop by Sign' and 'Revenge Dressing,' aimed at helping customers find tailored pieces. Other categories such as 'Understated Luxury,' 'Fall Wardrobe Refresh,' 'Back to School,' and 'It's a Date' provide specific product recommendations.

Saks is also expanding its advertising strategy by partnering with podcasts in the pop culture genre.

Saks launches 360-degree campaign

What: Thailand is a highly competitive market which forces retailers either to focus on efficiency, or on international attractivity.

Why it is important: Siam Piwat plans to top up the Thai government effort in promoting tourism by investing $28m on their own.

Siam Piwat Co Ltd, a leading Thai real estate and retail developer, has revealed a four-pillar strategy aimed at reinforcing its leadership in global destination development and supporting Thailand's post-pandemic tourism rejuvenation.

Highlights:

• Notable Assets: Siam Piwat owns and operates globally recognized retail spots such as Siam Paragon, Siam Center, and Siam Discovery. They're also in a joint venture with IconSiam and Siam Premium Outlets Bangkok.

• Investment in Tourism: The company will allocate over 1 billion THB (US$28 million) in Q4 to assist the government's objective of achieving 30 million overseas visitors to Thailand. This investment is planned to double in the subsequent year.

• Strategic Pillars:

1. Shopping & Luxury Leadership: They will partner with luxury brands to launch 20 new shops in Q4, many marking their first appearance in Thailand. Major luxury brands at their malls are also set to expand their outlets.
2. MICE & Event Leadership: Collaborating with various sectors, Siam Piwat aims to make Thailand the top international MICE destination in Southeast Asia. Plans also include partnering with a renowned event organizer to establish a new convention center in Bangkok.
3. Promotion of Thai Art: With over 15 years of championing Thai artists, Siam Piwat is working to position Bangkok as the art hub of Southeast Asia. By 2026, they plan to open an international-standard River Museum at IconSiam to draw art aficionados globally.
4. Showcasing Thailand's Soft Power: Over the last decade, Siam Piwat has curated platforms like SookSiam to project Thailand's cultural richness. Their efforts include promoting the nation's food, film, fashion, and design and collaborating with government agencies to globally elevate Thailand's soft power.

• Performance: In the past eight months, the company's malls have experienced a 46% increase in visitors compared to last year, with an average expenditure of 8500 THB (US$238) per visitor.

• End Goal: CEO Chadatip Chutrakul emphasized the company's commitment to strengthening Thailand's tourism sector, which she believes will be pivotal in reviving the nation's economy.

In summary, Siam Piwat is proactively investing in strategies to support the Thai government's push to rejuvenate tourism, ensuring its position as a top global destination and fostering economic growth.

Siam Piwat plans to invest $28m to attract visitors to Thailand

What: German retailer Peek & Cloppenburg goes fur free.

Why it is important: Fur free is no longer a feature for high-end department stores and becomes a norm across the range.

Peek & Cloppenburg Düsseldorf is becoming a source of inspiration for other fashion companies. The German fashion retailer, which includes all 13 Austrian branches, has officially gone fur-free with its 160 physical stores and five online shops, as announced by the animal welfare organization Vier Pfoten, the official representative of the "Fur Free Retailer" program in Austria.

This decision marks the company's strong stance against animal cruelty and fur products, aiming to raise awareness for animal welfare and positively influence the industry. Over 1,500 brands and retailers are now part of the global "Fur Free Retailer" initiative, which is dedicated to ending the breeding and killing of animals for their fur.

Peek & Cloppenburg goes fur-free

What: Pinterest is launching a pop-up store called Possibility Place in London's Covent Garden.

Why it is important: The store brings the online platform to life in a physical space.

The two-day event aims to bring the online platform to life in a physical space on the British high street. The pop-up will feature various sections, including a corner shop called "Provisions," where visitors can find everyday essentials with a twist. There will also be a beauty bar called "Parlour" where visitors can get nail art, tattoos, and hair styling. The "Projects" section will offer workshops on trending homeware pieces and interactive demonstrations from Pinterest's top interior creators. In addition, expert sessions hosted by creators will provide visitors with tips on elevating everyday meals and upcycling household items.

The pop-up is open from September 29th to September 30th, offering visitors a unique and immersive experience.

Inside Pinterest’s reimagined high-street pop-up

What: How Central World transformed a problem (Isetan leaving) into an opportunity

Why it is important: Interestingly, they have chosen to keep a Japanese flavour to keep the special positioning of the place.

Central World, a prominent mall in downtown Bangkok, faced the challenge of its anchor tenant, Isetan, a seven-level Japanese department store, going out of business in 2020. This was triggered by border closures, lockdowns, and trading hour restrictions due to the pandemic, coinciding with the end of Isetan's 30-year lease. Rather than viewing this as a loss, the mall owners, Central Pattana, saw it as an opportunity to reimagine the space.

Three years later, the mall has transformed the space into an "urban lifestyle destination". Instead of another department store, Central Pattana restructured the space to have mini-anchors on each level. The Japanese theme remains evident, particularly on the third floor with its "Japan Avenue", which features a food court, Nippon Market, and a small restaurant. The ground floor hosts American dining chains, Shake Shack and the upcoming Cheesecake Factory. The second floor boasts The Rink, a large ice rink, surrounded by kid-centered activities and stores. The fifth floor introduces Nitori, a Japanese home furnishing store marking its debut in Thailand, while the sixth floor houses a Kinokuniya bookstore. The top floor has an international food court.

The transformation of Central World underscores the evolving nature of malls, which are diversifying their offerings in response to challenges like e-commerce and the decline of traditional department stores. Central World's efforts show how a diverse range of shopping, dining, and entertainment options can be introduced while retaining elements cherished by patrons, like the Japanese theme, ensuring a vibrant and dynamic shopping experience.

Exploring Central World’s Isetan remake

What: Australia’s Myer reports best profits in 18 years.

Why it is important: Just like for many other department stores, this performance could be either a peak or the beginning of a new story according to strategic decisions made in an ever-changing context.

Myer reported a profit of $71.1 million, marking its best annual sales in 18 years at $3.36 billion. However, the second half of 2023 saw sales growth slow to 0.4% and a 1.9% drop in comparable store sales over the last six weeks. CEO John King attributes this to broader macroeconomic factors. Despite challenges over the years, Myer believes it's set for success, with a debt-free status and over $100 million cash on hand. The company has focused on its "Customer First" strategy, emphasizing online growth. Online sales reached $690.5 million in 2023, with a target of $1 billion annually in the next five years. Additionally, Myer's loyalty program boasts 4.2 million active members. Significant leadership changes are anticipated, with King exiting in 2024 and CFO Nigel Chadwick retiring next year. The largest shareholder, Solomon Lew, owns nearly 30% of Myer. The company sees a future in expanding online sales, improving distribution, and leveraging its loyalty program with new partnerships.

Myer reports record sales

What: For Zalando, the scarcity of real customer reviews explains why they should be removed.

Why it is important: Some aspects of customer relationship considered as a stapple so far are starting to be deeply reevaluated. Customer feedback is a feature of e-commerce.

Zalando, a German online retailer, has removed its customer reviews feature, citing that only 3% of shoppers left reviews and most products received none. Instead, they've introduced a survey to gauge if product descriptions influenced purchase decisions. The change surprised many industry observers, especially when reviews are increasingly influencing online buying habits. Concerns over fake reviews might have influenced Zalando's decision. Although the review option is gone, customers can still share feedback via their profiles or when providing return reasons. Zalando continues to innovate, recently launching tools like a body measurement predictor and a virtual fitting room for enhanced shopping experiences.

Zalando removes customer reviews from its German website

What: Sainsbury’s has announced its plans to open branded fashion destination hubs in its stores.

Why it is important: The company aims to cater to the evolving needs of its customers by offering a broader range of fashion brands and styles.

These hubs will be alongside its Tu Clothing line and will feature third-party brand partners.In addition, Sainsbury's will provide exclusive product ranges and expand its clothing offering to include curve, maternity, lingerie, and tailoring. Customers will have access to a wider choice of fashion brands both in-store and online, with over 30 brand partners available on the Tu.co.uk website.

The first stores that will launch the fashion destination hubs will be Stanway in Colchester, Crayford in Dartford, Bybrook in Ashford, Longwater in Norwich, Calcot in Reading, Osmaston Park in Derby, Selly Oak in Birmingham, Sydenham in London, and London Colney in St Albans. The brands will arrive in store between September 24th and October 6th.

Sainsbury’s to open branded fashion destination hubs in at least 50 stores

What: Amazon has developed a new version of its cashierless shopping technology for clothing retailers, called Just Walk Out.

Why it is important: The implementation expands the potential applications of the system beyond convenience and grocery stores, allowing for more efficient tracking of apparel items.

The technology uses radio frequency identification (RFID) tags to track apparel items. This is a departure from Amazon's previous system, which relied on cameras and shelf sensors. The RFID tags are affixed to individual items and monitored by fixed readers inside the store.

While Amazon has successfully deployed Just Walk Out in convenience stores and grocery outlets, it's unclear how many apparel retailers will adopt the RFID version due to concerns about relying on a competitor for in-store technology.

Amazon has conducted pilot tests of its RFID-enabled technology at fan shops in Seattle sports arenas.

Amazon develops version of cashierless tech for clothing stores