What: A new format for merchandising skin care, dubbed the ‘Skin Care Center’, is CVS Pharmacy’s initial move toward prestige beauty.

Why it is important: Following other mass-market retailers like Target, Kohl’s or Walmart, CVS is using the shop-in-shop format to bring prestige beauty to its aisles.

Initially, the concept was intended to streamline product delivery for its consumers in a place they already feel comfortable. Leveraging consumer confidence in CVS for health and wellness, the company plans to primarily provide skin care solutions.

CVS teamed up with L’Oréal to develop the space’s service components with a deep focus on the customer needs to drive each offering. Starting small with three locations, CVS hopes to expand the prestige beauty offering with licensed estheticians and trained consultants to offer customers an experience not traditionally found in other beauty retailers.

CVS Pharmacy moves toward prestige beauty

What: Tiktok abandons the deployment of its project in the face of the weak returns encountered by the process.

Why it is important: Despite Tiktok’s abandonment of bringing “live shopping to the West”, the market remains in the line of sight of many players like Amazon or Twitch.

After being one of the most downloaded apps during the pandemic, Tiktok’s addition of short or live videos onto the platform led to the ambition of bringing live shopping in the West. Live shopping has indeed experienced unprecedented growth in Asia since 2017, 280% per year until 2020, according to a report by McKinsey.

Live shopping still arouses ambitions at Facebook, Twitter, Pinterest, and Ebay which deployed a platform dedicated to direct sales this year.

Tiktok abandons Europe and U.S. "live shopping" project

What: The John Lewis Partnership has become the first retailer to launch its own Chef Academy to help address the current shortage of qualified chefs in the UK.

Why it is important: A joint survey released last week by UK Hospitality, the British Institute of Innkeeping, revealed that staff shortages in the hospitality industry are reaching critical levels. The survey found that 76% of operators within the sector currently have chef vacancies.

The Partnership will be taking on up to ten apprentices this year with the potential to increase that number in the future as part of a long-term commitment to support the hospitality industry. They will spend a year learning and working in the kitchens of the Partnership’s head offices and hotels.

John Lewis launches a chef academy

What: The phenomenon of customers abusing the e-commerce system is growing in China too.

Why it is important: Such a twist could lead to generating a significant amount of losses for many players including brands.

“Wardrobing” (‘fraudulent returns’ or ‘deshopping’), a phenomenon well known by Western e-commerce operators, is growing traction in China too: more and more customers order products, wear them once, and return them.

The phenomenon, thought to represent a total cost of $25.3b in the US in 2020, is favored in China for a series of factors:

• Return policies in China are still very generous,
• Lifestream sales are important in the country, and could also generate the temptation to feature the products and then return them,
• It might very well become more and more socially acceptable

Given the size of the market, such a trend is not good news for either e-commerce operators or brands.

“Wardrobing” is a threat in China 

What: Companies are improving workplace culture, opportunities and benefits to retain their employees in a tight labour market.

Why it is important: Companies are adjusting their employee retention strategies to combat the increasing trend of departures for new jobs, new industries, early retirement or self-employment.

According to McKinsey, the voluntary quit rate in the United States is 25% higher than pre-pandemic levels. Despite an impending recession, openings are not likely to return to normal levels. Companies are betting on improving corporate culture to curb employee departure. For example, companies are increasing their PTO, bonus values and remote work opportunities. In response to inflation, some companies are planning to offer financial planning education and increased wages for the expected rise in cost-of-living. Other companies are looking to improve health and wellness benefits.

71% of i4cp survey respondents said that their companies are putting more emphasis on corporate culture from a values perspective. This means an emphasis on a clear mission and purpose as well as showing greater commitment to diversity, inclusion and environmental actions.

Shifting corporate culture combats the great resignation

What: National Retail Federation’s chief economist Jack Kleinhenz is not betting on a recession happening this year.

Why it is important: U.S. economic growth is slowing, and consumer confidence is lower than it was pre-pandemic due to a tanking stock market and conflict in Ukraine. The National Retail Federation’s research pegs the risk over the next year to be low. Forecasts for 2023 remain hesitant. Jack Kleinhenz says, “Regardless of a prospect of a downturn or whether it will meet the threshold of a recession, the consumer outlook over the next few months remains favorable.” Adding that consumers remain financially healthy.

NRF predicts a recession is unlikely for 2022 but forecasts a potential recession in 2023

What: Placer.ai Mall Index looks at mall foot traffic for five malls that have been outperforming their own 2019 levels.

Why it is important: There is no set formula for malls to succeed, but offering unique experiences remains key for longevity.

By offering a mix of stores, experiences and dining options that can appeal to the surrounding community within the mall’s reach, some retail leaders are leveraging the damage caused by the pandemic.

Despite challenges and household income dropping over the past couple of years, all five malls that were analysed managed to exceed their 2019 monthly visitation levels. The common factor between these locations was an offer of attractions and events established to bring in customers.

Attracting customers today comes from offering exciting and stimulating spaces for people to meet, be entertained, eat, shop and discover new products. The top-performing malls are moving beyond the traditional offering into art exhibits, pop-up shops, events, live performances, gaming, and immersive installations that draw visitors in for more than just shopping.

The pandemic was inhospitable to many retailers leading to closures and empty spaces that have yet to be filled. Thus, adaption to the evolving consumer habits will necessitate capitalizing on the gaps in the market left by the pandemic.

Experience remains key for drawing in customers 

What: Kohl’s returns to previous strategies after negotiations with The Franchise Group fall through.

Why it is important: As negotiations with The Franchise Group collapsed, Kohl’s chief executive officer, and chairman Peter Boneparth returned to the company’s earlier strategy of monetizing real estate to avoid selling the company. Kohl’s owned real estate was valued at around 8 billion USD by activist investor Macellum Advisors, though Kohl’s has not disclosed the value of its real estate. Kohl’s owns about 400 of its more than 1,100 stores.

At various times during this year, preliminary offers were around 60 to 70 USD a share, but the stock market’s volatility, the changing retail environment, and, possibly, Kohl’s financial performance, brought the price down. The list of potential buyers of Kohl’s has been exhausted.

With reduced spending, Kohl’s has expressed preparations for increasing promotions and flexible spending. Kohl’s continues to open new small-format stores throughout the U.S. Kohl’s is also betting on a strategy of implementing “zones” designated for female-owned and emerging brands.

To date, there are nearly 600 Sephora shops inside Kohl’s, and 850 should be operating in 2023. The company has acknowledged the risks of potential unemployment, declining health of their lower-income consumer, decreased savings rates, and the overall promotional environment posing a challenge to their Sephora partnership strategy.

The future of Kohl’s after collapsing negotiations

What: Burberry is releasing limited-edition virtual Lola handbags on Roblox for only 24 hours.

Why it is important: Digital fashion leader Burberry is continuing its adoption of virtual clothing through its first sale of limited-edition Lola handbags on Roblox.

The bags include clouds, foliage, and other natural elements that would only be possible in the digital world. Each design will only be available for purchase for 24 hours. From 11 to 15 July, an unlimited number of each bag will be released daily costing 800 Robux, the Roblox currency. It may be less expensive than the real handbag, but luxury items have higher resale value on the platform. For example, Gucci's limited-edition, virtual accessories were priced between 1.20USD to 9USD on Roblox, but some buyers were willing to cough up large sums for the coveted items in resale. One user paid roughly 4,115 USD, or 350,000 Robux, for Gucci's Roblox-only bee-embroidered purse.

Burberry has focused primarily on gaming and in-game NFT series making this the first time it is selling virtual products to its expanding community on the Roblox platform.

Burberry’s limited-edition virtual bags for Roblox

What: The exhibit will consist of installations throughout the London department store designed to provide a window into the future based on our world’s current trajectory.

Why it is important: To connect with their consumer’s mindset, Selfridges is hosting a partnered collection of installations in its London department store which are curated by Agnes Gryczkowska. The installations are in partnership with Reference Festival, a Berlin-based event mixing fashion, art, and music. The focus of the installation is based on imagining the future of what the world would look like following its current trajectory.

This partnership between Selfridges and Reference Festival is the latest example of the department store’s bet on experiential retail. The strategy has resonated with shoppers and has been tied to revenues doubling to 1.2 billion USD in 10 years before the pandemic.

The installations will be visible in-store from Jul. 14 to Oct. 16 and will also be available to view digitally online.

Selfridges partners with Berlin’s Reference Festival on in-store exhibition

What: Americans are predicted to spend 109.6 billion USD on their pets in 2022 alone.

Why it is important: The expanding pet market relates to customer loyalty as owners are in need of trustworthy brands and retailers that can provide an elevated assortment of products.

The pandemic saw a spike in pet adoptions which has expanded the market for the pet category. While these customers can be difficult to please, they are passionate and ready to invest in quality products that can help bring their pet into every aspect of their life. For example, the easing travel restrictions has shown an increase in searches and purchases of travel accessories and equipment within the pet category. There has also been a visibly increased demand for convenient methods of care towards the long-term health and wellness of pets, be it supplements or organic treats.

Pet owners are overwhelmed by the abundancy of products and are looking for a curated assortment of quality goods so they can care for their pet in the same way they care for themselves.

Pet category leads customer loyalty

What: Saks opens pop-up and hosts a VIP event in Aspen with influencers, tastemakers and top clients.

Why it is important: First brands now department stores, pop-up shops continue to be a ubiquitous format for immersive client experiences.

Located at 516 East Hyman Avenue, the pop-up features women’s and men’s ready-to-wear, swim, accessories and jewellery. Saks will host a VIP Weekend in Aspen with influencers, tastemakers and top clients in the 2,000-square-foot pop-up that features a variety of luxury brands such as Alexander McQueen, Bottega Veneta and Missoni. Inside, clients have access to on-demand personal styling, fashion advice from Saks Stylists and access to digital touchpoints leading to saks.com.

This pop-up serves as a physical representation of Saks’ digital platform and aims to provide a curated assortment of luxury fashion, personalized customer service, ‘Instagrammable moments’ and unique and intimate events. Throughout the weekend the focus on luxury and adventure can be experienced not only through the Saks Aspen Pop-up but also through private shopping appointments, horseback riding, yoga, spa treatments, and special gifts.

Additional events will be available including a welcome party and mountaintop picnic with celebrities and designers.

Saks opens pop-up in Aspen 

What: Tommy Hilfiger opens a virtual shop in Roblox with games, virtual event space, and the Tommy Jeans Pop collection.

Why it is important: This is the next stage of Tommy Hilfiger’s Roblox collaboration.

The brand had previously worked with eight digital fashion designers from Roblox to create the Tommy X Roblox Creators collection and had established a virtual space for socializing and delivering content updates. Now Roblox fans of Tommy Hilfiger can shop puffers, windbreakers, hoodies and accessories from the Tommy Jeans Pop collection in the Tommy Play store. In addition to the virtual retail space, visitors can enter a spray paint area and create their own tags or unlock street dancing. There are also secret spaces and achievements for visitors to unlock.

The virtual storefront provides more experiences for the younger consumers on Roblox to engage with the Hilfiger brand.

Tommy Play store on Roblox

What: Latin American Fashion Summit seeks to elevate the Latin American fashion industry through an Amazon collaboration.

Why it is important: The partnership with Amazon will allow customers to purchase from Latin American designers thus expanding the reach of Latin American fashion and enrich the industry overall.

The initiative builds on the new Luxury Stores concept for Amazon, which launched the platform to feature both established and emerging luxury brands on its site.

Products are all sold directly to consumers from the luxury brands and authorised retailers, ensuring authenticity.

Latin American Fashion Summit collaborates with Luxury Stores at Amazon

What: The shopping mall owner Unibail-Rodamco-Westfield has raised its adjusted recurring earnings per share guidance due to first-half tenant sales in Europe recovering to pre-pandemic levels.

Why it is important: Doubt from renting retailers and mall tenants is improving with results showing in Unibail-Rodamco-Westfield’s first half of 2022 reports.

Retail operation performance, the end of Covid rent relief and higher variable income were some reasons the group believes its first-half year over year was up 53%. Following the group’s de-leveraging plan announced last year, debt has dropped by 1 billion euros. Confident in their assets being in the best catchment areas with affluent customer bases, the group is hopeful to achieve its goals in Europe by the end of the year and in the US by 2023.

The group’s main rival Klepierre has also raised its full-year guidance.

Mall owner Unibail-Rodamco-Westfield raises guidance

What: Amazon is set to purchase One Medical for 3.9 billion dollars as it moves further into health care services.

Why it is important: One Medical’s mission has been to make healthcare more accessible and affordable through in-person, digital and virtual care services by allowing healthcare providers across the US to integrate its technology and enable patients to schedule appointments, renew prescriptions and access health records online.

Amazon Health Services sees the potential to reinvent the health care industry by using its size and platform. The company has purchased One Medical for 18 dollars a share in an all-cash transaction, including net debt.

Amir Dan Rubin will remain as CEO of One Medical.

Amazon Health Services expansion 

What: Analysts view the pandemic’s contribution to the boom in luxury sales as ‘outsized’ and predict a normalization on the horizon.

Why it is important: The post-pandemic revenge spending seen outside of China is expected to dampen in the coming months as recession, inflation, and Chinese economic policies may begin to weigh on luxury consumers.

Looking at Richemont and Burberry, double-digit first-quarter postings show that clients are eagerly shopping as restrictions have been lifted, but background politics and macro trends loom heavy on the market.

Richemont’s sales in Europe grew by 42%, due to “robust domestic demand,” and a return in tourist spending, primarily from American and Middle Eastern clients. Growth was strong across markets, particularly in France where sales increased in the triple digits.

Mainland China was a drag on growth due to COVID-19-related lockdowns, but other countries in the APAC region helped to mitigate those declines. In the 13 weeks to July 2, Burberry’s retail revenue increased 5.4% to 505 million pounds, while at constant exchange, growth was flat.

Burberry surprised the markets with a 1% uptick in comparable store sales after analysts had predicted a 2% contraction. Like Richemont, Burberry also saw strong demand in Europe, with comparable-store sales growing 47% due to demand from local clients and sales to American tourists.

However, Richemont saw better growth overall, reporting sales in the Americas region climbing to 79% and putting it on par with Europe as one of Richemont’s most lucrative regions. Mainland China trends are promising as well with demand for Richemont’s big-ticket items remaining strong. The luxury fashion market stability will be impacted by the consumer sentiment towards macro trends affecting the global economy.

Uncertain longevity for boom in luxury sales

What: Amazon Fashion Europe has announced its first-ever partnership with Twitch, the video live-streaming service that focuses on video gaming streaming, to showcase its best summer styles and brands.

Why it is important: As many retailers turn towards live-streaming or live-shopping events, Amazon’s collaboration with Twitch will be an example for other fashion retailers to watch when considering their next digital marketing strategy.

The collaboration will see two teams of Twitch content creators enter into a week-long European road trip starting July 23 from the Amazon Fashion Studios in Hoxton, London.

During the race across Europe the “Twitch superstars, emerging creators and fashion insiders” will complete fun fashion challenges hosted by some Amazon Fashion brands, while showing off their Amazon Fashion looks for every location and activity.

Amazon Fashion Europe & Twitch collaboration

What: Secondhand marketplace Vinted unveils ‘Vinted Go’, a new B2B shipping platform.

Why it is important: Vinted Go’s technology, IT and operations infrastructure enable businesses to ‘plug in’ to Vinted’s multi-carrier network through a single integration process. The ultimate goal is to remove the need to sign multiple individual agreements with carriers to get the best-priced and most convenient delivery solution.

The new offering is available for domestic and cross-border deliveries across Europe focusing on PUDO (pick-up, drop-off). PUDO as a delivery option can have lower carbon emissions than in-home delivery, ad will provide customers access to its ever-growing network of national and international shipping carriers in 14 countries.

Vinted Go has a strong pipeline of potential new customers who are looking to improve their deliveries to PUDO, in Spain, Italy, France, the UK, Benelux, Germany.

Vinted’s new B2B shipping platform

What: Following its first half results and success with Kering Eyewear, the Kering Group is looking to create value within the beauty segment.

Why it is important: While it remains unclear if Kering will launch through licensing or acquisitions, the group is well positioned to expand into the beauty segment.

Kering operates under a licensing model with Coty Inc. with whom they have expressed dissatisfaction in the past for having failed to capitalize fully on the segment. Now, with a free cash flow of 2.05 billion euros in the first half of 2022, Kering is well positioned to make acquisitions. The group announced in 2019 that its M&A search was back on, but it has struck only a handful of small deals since then.

While reports look good as many Kering brands had high sales increases and growth, Gucci, their top performing brand, slowed in comparison due to its exposure in China. The euro’s slide to parity against the U.S. dollar did boost top-line revenues for companies that sell many of their goods abroad like Kering’s brands. In addition, U.S. tourists have taken advantage of the cheap euro to splurge on luxury goods abroad.

Whether through launching a beauty line or diversifying the group’s portfolio with acquisitions, Kering maintains that entering the beauty segment is inevitable.

Kering looks to beauty 

What: Frasers Group has bought a 28.7% stake in Australian-based fashion marketplace MySale.

Why it is important: Frasers Group believes the deal will provide a “strategic partnership whereby end of line group products can be cleared via an established clearance channel”.

Fraser Group upped its stake in Hugo Boss. They now own 3.4 million shares of common stock, representing a 4.9% stake in Hugo Boss, and 18.3 million shares of common stock via the sale of put options, representing a 26% stake.

Frasers Group also bought Missguided for 20 million.

Frasers Group acquires 29% stake in MySale 

What: Clinique has debuted a new retail concept in Macy’s Herald Square in Manhattan.

Why it is important: Clinique is rolling out a new retail concept that combines self-shopping, digital experiences, and in-person clienteling to create an experience that aims to redefine the brand positioning and DNA.

Digital features include Clinique’s ‘Clinical Reality’ technology that scans the faces of clients and offers a customized assortment of product recommendations. In the centre, the ‘Discovery Table’ offers new products and classic best sellers. Consultants are also available at the ‘Community Bar’ to assist clients when needed. Despite being able to scale the project across stores and location sizes, the biggest challenge for Clinique has been brand familiarity.

The goal of this new concept is to reshape the perception of Clinique by delivering an unseen experience that can attract younger consumers and reinvigorate the excitement in dedicated clients.

Clinique’s new retail concept in Macy’s

What: Glossier signs its first major wholesale deal with Sephora.

Why it is important: The first major wholesale deal for Glossier since it was founded in 2014 will dramatically expand the distribution of this DTC brand.

As a trendsetter for DTC and digital brands, Glossier’s partnership with Sephora marks a shift in beauty retailing. Online-only products are no longer a disruptive strategy as e-commerce is now an expected convenience for consumers. This move into Sephora stores will assist in Glossier’s ambition to scale the business larger than it could have alone.

The partnership comes with some perils as Glossier will need to adapt their previous experiential pop-ups into Sephora shop-in-shops. The price point is another discussion point between the beauty brand and retailer due to the positioning and target consumer of Glossier being lower than Sephora’s.

For Sephora, the partnership will entice younger consumers into its store. While for Glossier, the deal answers its consumer’s demand for the ability to shop products offline.

Glossier is coming to Sephora

What: Despite a decline in consumption, analysts expect fashion retail in Shanghai to recover by the end of 2022.

Why it is important: The apparel retail sector which accounts for 24.2 percent of total spending, fell 17.8 percent to 146.177 billion renminbi, or 21.86 billion USD, during a two-month lockdown. Shanghai’s foreign trade also dropped more than 14 percent in May to 275.934 billion renminbi or 41.26 billion USD. Dan Wang chief economist at Hang Seng Bank China believes that macroeconomic policies are expected to stay strong. Beijing has yet to abandon its growth target of 5.5 percent making a rebound more likely.

The fashion sector’s rebound is predicted to recover by the end of the year but will rely on the confidence of young and wealthy consumers. The second half of this year is likely going to show some acceleration in economic recovery, yet the labor market will remain weak. Luxury spending is limited by rising layoffs, slower income growth, and mounting employment pressure for younger generations as unemployment rates reach an all-time high in the last four years.

Discounts remain in line with the season, as many brands are hesitant to meet the current consumer confidence by lowering discounts further. Kenny Chan, chief executive officer of IT China, remains confident in brands tapping into mainland China.

Bain and Kantar has also released a recent report advising brands to use 2022 to prepare for a strong rebound in 2023 validating an overall optimism around the Chinese market.

Shanghai consumption dropped 18 percent from January to May