What: The luxury footwear and accessories brand taking over a prime space in the London branch, Selfridges' 'Corner Shop'.

Why it is important: The initiative comes as more and more foreign tourists return to the UK after the pandemic period and British consumers are once again turning to seaside getaways.

Even with the current issues with flight cancellations, holiday bookings are continuing apace.

The core of the collection on display in the shop is the Greekaba summer collection, but the 'Loubi's on the Beach' theme also includes exclusive pieces, as well as some preview products.

Louboutin launches beach-themed pop-up at Selfridges (French)

What: The Norwegian Consumer Authority has found outerwear brand Norrøna’s use of data from the Higg Index to back up environmental claims is misleading to consumers and warned H&M Group against using the same type of marketing.

Why is it important: The decision comes amid mounting scrutiny of big fashion companies’ sustainability claims, as concerns about greenwashing attract greater regulatory interest. It also deals a blow to the Higg Index, a widely used suite of tools developed by trade group the Sustainable Apparel Coalition.

Norrøna was among the first to use a consumer-facing product labelling tool introduced by the SAC last year, using data from the Higg Index’s materials module to show shoppers how a handful of its organic cotton T-shirts measured up on environmental factors like water use and global warming, compared to an equivalent T-shirt made from conventional cotton.

While Norway’s consumer watchdog only investigated Norrøna’s marketing, it also wrote to H&M Group warning the company to ensure it is not using the same kind of marketing by Sept. 1 or risk economic sanction. H&M is among the companies that have used Higg data in consumer marketing. Meanwhile, the SAC received a warning that it could be held responsible if its members use Higg data as a basis for environmental claims in their marketing.

The finding plays into an increasingly urgent debate over what “sustainable fashion” really means and how brands can back up any marketing. The SAC has sought to position the Higg Index as a suite of tools that can underpin such claims, but critics have argued the tools are not fit for use in marketing messages in line with the NCA’s decision.

H&M misleading sustainability claims

What: Farfetch has teamed up with sustainability ratings company Good On You to launch a sustainability hub to help brands better understand and communicate their sustainable credentials.

Why it is important: The new ‘one-stop-solution’, called Good Measures, will give brands a “comprehensive view” of their current sustainability rating and provide customised guidance on where they can improve.

Brands can submit publicly disclosed information on their performance that allows them to get rated or re-rated by Good On You. If they achieve a high enough rating, they will qualify for the Farfetch Conscious Collection.

Good Measures is grounded in Good On You’s sustainability rating system, which measures how individual brands impact people, the planet, and animals. The system collates information from over 500 data points such as independent standards and certifications; third-party indices; and brands’ own public reporting.

Farfetch links with Good On You

What:  Poor inventory decisions and shifting consumer behavior are putting US retailers at risk according to UBS.

Why it is important:  Sales might take place earlier and be more brutal than expected for this season in the US. The inventory level seen by IADS in the Seattle Nordstrom store was already a worrying sight early June 2022.

According to a recent note from UBS, department stores such as Nordstrom, Macy’s, Kohl’s or Dillard’s are at risk of carrying an unprecedented level of excess inventory, due to poorly made decisions at the moment when inventory was ordered for 2022, and a shifting behaviour from customers asking for more dressy styles and dropping the casual look. As a consequence, retailers carry too much stock on poorly-performing categories. UBS expects this to also affect off-price retailers, such as TJX or Burlington stores.

US department stores at risk of an unprecedented inventory excess 

What: An alliance of major fashion brands including H&M have announced that they are pausing the use of the Higgs Index tool to measure garments’ sustainability after critics described it as greenwashing.

Why it is important: The Higg Index was once seen as a creditable label that many brands are using to promote sustainability efforts. It is now being criticized as an aid to greenwashing and being advised against as it does not enable consumers to make more informed decisions.

The Norwegian Consumer Authority (NCA) warned H&M Group two weeks ago against using the Higg Index to support its environmental claims. It added that if it was still using such marketing by 1 September, it would risk economic sanctions.

Even though the NCA did not investigate H&M they did investigate another Norwegian brand Norrøna who was also using the index on their website. The NCA concluded that the data was in fact misleading to consumers and the claims unsubstantiated.

Many sustainability activists have been rejoicing after the announcement as they felt this methodology does not cover all aspects of product sustainability.

Other retailers that are currently using the index are: Nike, Primark, Walmart, Boohoo, Amazon and Tommy Hilfiger.

Fashion brands stop using sustainability index tool over greenwashing claims

What: Bottega Veneta is re-releasing handbags from its archives, considering lifetime repairs, and has an internal app aimed to bring staff up to speed on sustainability.

Why it is important: Bottega Veneta will be selling handbags from its archive on an integrated platform called Bottega Series, accessible via its e-commerce site. The bags will be a re-release of its timeless leather bags from past collections referencing as far back as the 1966 intrecciato bags. The bags will be sold at full-price, which reflects their enduring value. New monthly pieces will be dropped for a limited time, the brand said. A lifetime warranty programme is also in the works.

Bottega Veneta is not the first Kering brand to explore circularity, though today’s efforts mark a significant step-up from the brand. Bottega says the philosophy of Bottega Series is to “challenge the very construct of seasons – pieces that are timeless do not need to abide by a seasonal calendar.” Instead, the brand says it is focused on creating objects that last forever.

To support future ventures into circularity, Bottega Veneta is also re-assessing its design process, with a focus on durability, craftsmanship and creativity. At the end of 2021, it developed an internal app to simplify sustainability for its staff.

The idea is to reduce overall production in the coming years but focusing on high quality, timeless products, soon to be sold with a lifetime warranty.

Bottega Veneta to re-release archival pieces, build lifetime repairs 

What: As retailers continue their journey down the digital transformation path, they are on a constant strive to be agile in how they respond to ever-evolving customer requirements. One of those retailers being Neiman Marcus Group.

Why it is important: With customer expectations and technology evolving at an unprecedented pace, moving to cloud is no longer a nice-to-have, but a must-have for retail companies in terms of operational resilience, reliability, security, scalability, and agility.

The process of migrating a monolithic application into microservices requires modernizing legacy systems. To accomplish this, NMG incrementally refactored monolithic applications, instead of refactoring the entire code at the same time.

NMG built a Cloud Center of Excellence team, responsible for the complete DevSecOps practice across the organization. They are responsible for setting up the cloud build pipelines, guard rails, governance, platform architecture & security standards, so that different product teams have a certain baseline and are still within those guard rails, can operate really fast and execute scalable and standard performance tested architectures.

Even though NMG started operating in the cloud, they needed to have certain enterprise guidelines, best practices and architectural standards in place. So, they built a solid platform that different product teams can innovate at scale and quickly deliver value to business partners. Serverless architecture also helped NMG elastically scale their app to quickly meet demand.

Some of the rewards for Neiman Marcus Group felt from building their serverless platform were accelerated business agility and speed to market, an increase in online customer satisfaction, and a major uptick in associate productivity as they were given a platform where they have the information and the intelligence needed to engage the customers effectively and efficiently.

Cloud-Native Architecture Transforming Retail: Lessons from Neiman Marcus Group

What: Neiman Marcus is lifted up thanks to a refreshed base of luxury shoppers.

Why it is important: Younger, omnichannel and shopping in all stores, sensitive to marketing and buying leading brands: the dream?

Geoffroy van Ramedonck, the CEO of Neiman Marcus, has noted that upper-income shoppers have lifted results in the department store company, and took note of 5 new traits :

• They are on average 7 years younger (60% of the customer base is Gen X, Millenials or Gen Z),
• Acquired customers spend at least $10,000 a year, and 1 out of 6 comes back within 90 days,
• They are buying top 20 brands that are up 70% from prepandemic levels,
• They are everywhere (no store is left behind),
• They are sensitive to brand activations such as the Prada popup which generated $10m in 2 days.

According to van Ramedonck, overall sales are up +30% vs. Q1 LY.

5 things Neiman Marcus’ CEO discovered about luxury shoppers 

What: As women dress up again, Rent the Runway’s revenue doubled in Q1.

What it is important: Before the pandemic, Rent the Runway had begun to expand its market by offering more office-appropriate options, but its momentum right now is being driven by special occasion dressing.

Rent the Runway doubled its revenue in Q1, from USD 33.5 million last year to USD 67.1 million, according to a company press release.

Its active subscriber base rose 82% to 134,998 by the quarter’s end, a 17% increase from the previous quarter and its highest end-of-quarter count.

Gross profit rose 178% to USD 22.5 million, as gross margin expanded to 33.5% from 24.2% a year ago. The company’s net loss widened from USD 42.3 million last year to USD 42.5 million.

The recently unveiled at-home pickup offer, available in 20 cities to more than a third of the subscriber base, is proving to be not only more convenient to customers but also less expensive for the company.

During the quarter, Rent the Runway launched six new exclusive collections, with plans for almost 20 such partnerships this year, on track to becoming 60% of the company’s product acquisition mix this year. The company is aiming for those exclusive to become two-thirds of its assortment, part of its plan toward free cash flow profitability.

The company still must prove itself but is tapping into the market forces that are stoking the rapidly growing secondhand apparel market.

Rent the Runway revenue doubles in Q1 

What: Two Swedish giants are teaming up to promote English design and innovation.

Why it is important:  This initiative kills two birds with one stone: find something to do with the leftovers of the previous Oxford Street store purchased by Ikea, and root their name into local communities by promoting regional culture.

H&M and Ingka Group are teaming up to open the Atelier 100 space in Hammersmith (London) with the objective to promote local British designers and entrepreneurs. Following a regional contest, 20 winners will display their products in the Atelier 100 space.

The products are often using material recycled from the old stocks of Top Shop, which flagship store on Oxford street was purchased by Ikea earlier in 2021.

H&M and Ikea’s owning company team up 

What: The store in X’ian was a pilot.

Why it is important: Many pure players are venturing into physical retail (see Amazon) but so far, they learn that physical retail is a job per se which can not be learnt along the way. Will it be different in China?

As we reported last year, JD.com has opened a department store in X’ian in September 2021 on a total surface of 42,000 sqm. It appears that this innovative venture, integrating all its existing business units (fashion, lifestyle, housewares). It appears that this is the first step in a national roll over, with new locations announced in Beijing and Chengdu, set to open this year.

Business is growing quite steadily, especially since the Chinese authorities have forced all retailers to open their platforms to all suppliers and not only approved ones.

JD.Com is expanding its department store network 

What: H&M has shut its flagship Shanghai store, its latest closure in China where consumer demand has slumped amid Covid-19 lockdowns and faced a backlash against companies that refuse to use Xinjiang cotton.

Why it is important: The world’s second-biggest fast-fashion retailer entered China in 2007 with the opening of the Shanghai flagship store. H&M had more than 500 stores in mainland China early last year but its website currently only lists 376, including the flagship Shanghai store.

Although nearly a month has passed since Shanghai lifted a strict two-month lockdown, consumers have yet to return to malls in significant numbers.

Chinese consumers have also beat a retreat from its products after a letter in which H&M expressed concerns about allegations of forced labour in the Xinjiang region came to light in 2021.

H&M Closes Shanghai Flagship Store

What: Consumers are choosing to shop more consciously, according to Farfetch’s second annual conscious luxury trends report, which reveals that the number of its customers who purchased a product from its conscious collection increased 60% year-on-year in 2021.

Why it is important: France experienced the strongest growth globally in conscious shopping on Farfetch with an increase of 149% year-on-year in gross merchandise volume (GMV) from conscious products and South Korea demonstrated the biggest increase in pre-owned spend per item (ASP), up 116% year-on-year.

Customers are continuing to shop more consciously and brands and boutiques on Farfetch’s platform are responding to rising consumer demand by consolidating and increasing their commitments to improve their impact on people, planet and animals.

Farfetch now sells 220 brands that are rated highly by Good On You, up 13% year-on-year, and the amount of conscious products on the platform supplied by its network of boutiques grew 40 percent, while GMV from conscious products from boutique partners was up 46 percent.

Farfetch adds that its shoppers are wanting to be more responsible, as searches for conscious product terms on Farfetch increased by 93% year-on-year, and the sale of conscious products grew 1.8 times faster than the marketplace average over 2021.

Customers also have a new focus on buying quality pieces with longevity in mind, with 79% adding that they are now buying a higher proportion of luxury fashion because they believe it is more sustainable than fast fashion, being of higher quality and longer-lasting.

Farfetch’s circular fashion initiatives are resonating with customers and these services and are “attracting new and valuable customers,” looking to extend the life of their items. 22% of survey respondents said that in the last 12 months, they have started selling fashion items they no longer use, while 20% added that they have donated a used fashion item in the last year, and 13% said they have repaired one.

Farfetch unveils second conscious luxury trends report

What: Frasers Group has snapped up fast fashion retailer Missguided for 20 million pounds just a day after it fell into administration.

Why it is important: The group hopes that Missguided’s digital-first approach to the latest trends in women’s fashion will bring additional expertise.

Frasers Group, whose portfolio includes Flannels, Sports Direct, House of Fraser, and Jack Wills, said Missguided will continue to operate as a standalone business within the group.

Frasers Group buys Missguided out of administration

What: Nata Dvir’s rise through the ranks of Macy’s to become the retailer’s chief merchandising officer has been meteoric, Dvir talks about the secret sauce to serving consumers and the approach to climbing the ranks.

Why is it important: Dvir’s roles have spanned the retailer’s offering: She started in intimate apparel, then worked on cross-category strategy, in addition to fine jewelry and women’s shoes. For the past five years, though, she’s helmed the retailer’s beauty business and then was given merchandising responsibility for everything.

The secret is understanding so many different categories, and how customers have been able to shop across those categories. As chief merchant, versus running beauty, time is spent thinking about the customer across all the different categories, and how Macy’s brings it all together. Investing in categories that are important for the customers and new categories that customers are looking for from Macy’s.

For instance, in Beauty, it is important to keep customers in the loop about what’s trending and keep current on each new trend on TikTok or Instagram so they can provide what customers are looking for.

Dvir credits her rise to that ethos, as well as the proper guidance.

Macy's retailer's chief merchant’s view on customers

What: Apple is partnering with Goldman Sachs for its buy-now, pay-later payment, built directly into Apple Pay, the update will allow users to pay for purchases in four installments over six weeks.

Why is it important: BNPL services have gained wide popularity in recent years. Fintech upstarts like Affirm, Afterpay and Klarna have been able to capitalise on young consumers’ distrust of traditional credit card companies and convince thousands of merchants to pay for their services.

In the US, the largest BNPL player, Affirm, has seen its stock value plummet nearly 75 percent this year.

The function will be an addition to the current Apple Pay offering and will be rolled out as part of its upcoming iOS 16 update.

Apple Launches Buy-Now, Pay-Later

What: JD.com sees worrying signs that shoppers are reluctant to reopen their wallets even as major cities emerge from bruising Covid lockdowns, suggesting consumer spending may take months to recover.

Why it is important: The months-long closure of cities like Shanghai has caused a fundamental shift in how people spend their money, with a pullback in discretionary spending continuing even after the lockdown of the financial hub ended a few weeks ago.

The slow recovery now means it will be even harder for China to achieve the full-year economic growth target of around 5.5%, especially if there are further large-scale Covid outbreaks.

Even with policymakers promising more support for private investment and the platform economy to mitigate the Covid shocks, economists have continued to cut their forecasts for growth this quarter and this year. Online retail sales will likely only grow in the low single digits this year after expanding 12.5% last year.

Logistical hurdles have also persisted as various places across China implement Covid Zero policies, including testing and travel restrictions, with varying degrees of aggressiveness. The State Council gave warnings this past weekend to provinces including Hebei, Anhui, and Shaanxi for excessive enforcement of policies that have blocked domestic supply chains.

However, spending from consumers in smaller and less developed cities is picking up, particularly those less affected by Covid shutdowns. Spending growth in smaller tier-five and tier-six cities has greatly outpaced that of tier one and tier two cities like Shanghai and Shenzhen.

JD.com warns consumer recovery is months away

What: Big brands are adopting crypto payments, but, before brands follow, they need to consider several factors, from how to handle transactions to the risks involved.

Why it is important: Fashion and luxury sellers may be feeling some peer pressure right about now to jump on the bandwagon and start taking cryptocurrencies as payment. But there are costs in time and money involved, so despite the hype, companies need to decide what's right for their business and their brand before they jump in.

Many big brands have turned to companies such as BitPay or CoinGate to simplify the process for them. These payment gateways can integrate into the brand’s online checkout or point-of-sale system in stores, allowing the merchant to accept any coin they’re set up for and handle transactions from start to finish. A shopper typically scans a QR code to make a payment. The payment gateway accepts the cryptocurrency directly, validates it, converts it to fiat currency, and deposits the funds in the merchant’s bank account.

Brands have different options for handling payments, including gateways that do all the work for a fee, but there are still risks and legal issues to consider. Unlike a credit card, a crypto wallet can be anonymous, raising the threat of illicit transactions.

Brands are still subject to reporting large and suspicious purchases. Importantly, they need to ensure they’re not taking payments from sanctioned individuals or enabling money laundering.

Still, some brands may want to associate themselves with crypto as part of a longer-term web3 strategy. Allowing crypto payments can be an effective way of attracting the crypto audience, plus, the group of shoppers wanting to pay with crypto does look to be expanding.

What brands should know about accepting Cryptocurrency 

What: Colorifix has announced the closing of a Series B funding round of GBP 18 million led by the H&M Co:lab.

Why it is important: Fast fashion retailers are getting a lot of heat for their business models and are trying to find other ways to make their business more sustainable.

Already launched with H&M and Pangaia, the product, an eco-textile dyeing process (considered to be the first of its kind) , hopes to aid in the sustainable transformation of the industry.

The funding will be used to support the trebling of Colorifix’s team as it prepares to expand further into Europe and Asia, bringing its technology into the supply chains of brands.

H&M leads GBP 18 million Series B for Colorfix

What: Neiman Marcus Group announced the closing of the USD 200 million common equity minority investment by Farfetch Limited in NMG, and the signing of the commercial agreements with Farfetch Platform Solutions.

Why is it important: Neiman Marcus Group will use the proceeds to further accelerate growth and innovation through investments in technology and digital capabilities to make life extraordinary for its customers.

In addition to the minority investment Farfetch is making in NMG, Farfetch and NMG have negotiated a commercial agreement whereby Farfetch Platform Solutions will re-platform the Bergdorf Goodman website and mobile application.

As a result, Bergdorf Goodman will introduce its digital customer experience and curated offering to customers globally, integrating seamlessly with the iconic New York City flagship.

Neiman Marcus is committed to using select FPS modules, including foundational international services. Both Bergdorf Goodman and Neiman Marcus will join the Farfetch Marketplace as a partner, adding participating brands in key global geographies.

Neiman Marcus Group announces the closing of a USD 200 million minority investment by Farfetch 

What: Macy’s has launched 10,000 free NFTs, celebrating the retailer’s Fourth of July fireworks show and for the new NFT drop, it’s also launching a channel on Discord.

Why it is important: The NFTs are available on a first-come, first-serve basis via the Macy’s Discord channel at Discord.com/invite/weBCA2nevs. The NFTs will be in “classic, rare, and ultra-rare” designs with graphic elements from this year’s Macy’s Fourth of July fireworks. The NFTs provide access to augmented reality wearables that can be used on a selection of social media and video communications platforms.

Macy’s fireworks NFTs are built on the Polygon blockchain. The 25-minute Fourth of July fireworks display is a barrage of more than 48,000 shells and effects.

Macy’s Latest Launch: Fourth of July NFTs - WWD

Macy’s Launches Discord Channel and New NFT Series - Press Release

What: The state of play for AR in fashion, including how Snap's work and that of recent innovators will drive retail in the virtual world.

Why it is important: While the reality of augmenting retail has literally put virtual try-ons front and center for makeup, sneakers, eyewear and furniture shoppers, the consumer proposition for apparel has really only just begun. The challenges are steep, but interest in AR clothing has been gaining momentum in recent years, especially as NFTs and metaverse mania have put a spotlight on 3D digital fashion.

One of the most visible players in this space is social media behemoth Snap Inc., as its investments for Snapchat double down on cloth simulation and body tracking technology. The company revealed that it’s been working on these efforts last year, and it’s clear they’re key priorities, as it has been refining them and expanding the scope of materials.

Enticing people to buy products is an obvious benefit of letting them try on goods, and so then making that easier by allowing them to check out the experience at home is likely to boost sales.

The company released new data this month that casts AR as a highly effective tool for slashing product returns. A survey found that two-thirds of consumers are less likely to return merchandise after using AR. As for fashion, nearly three-quarters said they were likely to buy clothes after using AR in the future. The figure for beauty, where AR is already well-established for makeup try-ons, is 69%.

With the massive push behind AR applications for fashion, it’s more than likely that someone will figure out how to crack it before long, and that means that AR for fashion may finally arrive, ready to connect the massive real-world business of retail and fashion to the emerging virtual world.

AR’s road to fashion

What:  The first international location for the London-based multi-brand retailer.

Why it is important: Physical retail and wholesale operations are still strong enough for businesses to expand internationally. There is also an global appetite for specific concept-stores which is only growing now that customers are eager for physical experience to differentiate from online.

Machine-A, the London-based multi-brand luxury retailer has announced its first venture out of the UK by opening a location in Shanghai in September.

The store, planned to span over 245 sqm, will host Raf Simon’s first direct to customer location in the country. They also stock names such as Maison Margiela, Rick Owens and Comme des Garçons.

Multi-brand boutique Machine-A to open a location in China 

IADS SHANGHAI City TOUR 

What: Walmart plans to build four new high-tech fulfillment centers over the next three years that would include automation, machine learning and robotics while also collectively employing more than 4,000 new workers.

Why is it important: Through the four new fulfillment centers alone, Walmart could offer next-day or two-day shipping to 75% of the U.S. population.

Walmart has partnered with Knapp, a fulfillment tech company that will develop an automated high-density storage system that streamlines a manual, twelve-step process into just five steps.

The centers use an automated storage system to house products — once they are received, unpacked and placed in specialized “totes” — in millions of designated locations. When a customer purchases an item, the system retrieves it automatically and creates a custom-fitting box.

Walmart plots 4 new ‘next generation’ fulfillment centers