What: SM Investments cite that post-pandemic shopping by Philippine customers is the driving force behind the impressive first-half results.

Why it is important: Revenues have risen in department stores by 27% overall with retail sales increasing by 18%.

In the first half of 2023, consolidated revenue jumped 18% to PHP 286.3 billion and consolidated net income increased by 32% to PHP 36.5 billion. The retail segment made up 17% of total net earnings.

Revenge spending underpins Philippine’s SM Investments first-half

What: Central Thailand caters to all Asian tourists with this new payment option.

Why it is important: This might be a first step to the generalization of this offering across the international division of Central Retail.

Central Retail Corporation (CRC) has partnered with Ant Group to introduce Alipay+ across its stores in Thailand. This move aims to enhance convenience for Asian tourists from the Chinese mainland, Hong Kong, Malaysia, and South Korea by offering full services for international digital payments.

Users can make payments using their local digital wallets, such as Alipay, AlipayHK, Touch ‘n Go eWallet, and Kakao Pay, without the need for cash or currency exchange. The service will be available across more than 3000 Central Retail outlets in Thailand.

This partnership aims to target Asian tourists visiting Thailand, with plans to expand payment services to accommodate tourists from other countries. The introduction of Alipay+ coincides with a rise in Asian tourists visiting Thailand, and sales to international travelers at Central Retail stores have reportedly doubled year on year during the quarter.

Central Retail teams up with Ant Group to launch Alipay+ in Thailand

What: Alipay+ Premier Partner Programme has attracted retailers who wish to increase customer engagement through internal digital marketing.

Why it is important: The programme aims to improve the precision and efficiency of cross-border marketing for local and global merchants.

Alipay+ connects businesses with multiple e-wallets and payment options across several nations and regions- including Alipay, AlipayHK (Hong Kong SAR, China), GCash (The Philippines), Kakao Pay (South Korea), TrueMoney (Thailand), and Touch 'n Go eWallet (Malaysia).

Over 1 billion customers will be able to pay in their preferred method, enjoy exclusive offers, and get competitive exchange rates.

The programme can help attract consumers and tourists to China and Southeast Asian countries.

Retailers join Alipay Plus Premier Partner Programme for cross-border marketing 

What: The Thai conglomerate is booming and developing on new markets.

Why it is important: Even though it is going through some difficulties, Vietnam is the new goldmine, alongside India.

Central Retail Corporation and its subsidiaries saw a 5.6% increase in Q2 revenue, amounting to THB60,002 million (US$1.6 billion), and a 5.3% growth in profit, reaching THB1690 million (US$47.4 million). Sales revenue rose by 4.5%, largely fueled by the fashion sector’s 14.1% growth.

Thailand’s sales rose by 8% and Italy saw a 20% sales increase due to its reopening, benefiting both local and tourist purchases. However, Vietnam’s sales dipped by 10% because of a weaker economy.

As of June 30, the company expanded its net sales area by 3.4% and net leasable area by 6.9%. Despite improved Q2 performance attributed to a robust business model and adjusted strategies, challenges remain, such as rising electricity and operational costs.

Central Retail posts growth in revenue and profit

What: PdPaola is advancing its international development by opening in Printemps’ Paris Haussman store and the Lille store.

Why it is important: France is top country in turnover volume of the country so the agreement will strengthen the Spanish jewellery brand’s development abroad in retail.

The brand has also announced an agreement with the Italian department store, Coin which will be 6 opening across the country. Other new international openings include in San Juan (Puerto Rico), Armenia, Georgia, and Lima (Peru). There will be three points of sales opened in the Falabella stores in 2023.

PdPaola seals a strategic alliance with Printemps to land in France 

What: Luxury brands are opting for fewer but more spectacular flagship stores.

Why it is important: The monumental stores double as a tourist attraction and increase consumers’ perception of the intrinsic brand value due to their opulence.

Luxury stores need to increase their appeal to gain traffic and engagement all while holding on to the exclusive status. The supersized stores fully immerse customers into the brand and take the shopping experience to the next level. For example, in Dior’s Avenue Montaigne complex, there are several eateries, a museum and a hotel suite in addition to home beauty, and fine jewellery departments. The store is exceptional, and it is worth the visit for customers rather than placing online orders.

China is the prime location for many new projects of supersized stores such as Dior’s expansion in Shanghai’s Plaza 66, Fendi Casa in Shanghai’s 1788 Square Mall, and super mega flagships for Louis Vuitton, Dior, and Hermès in Taikoo Li Beijing. Brands in China are supposedly focused on the super-rich class due to the lack of growth in the middle class, as a wide percentage of revenues are generated from their very important customers.

Luxury brands are also investing in pop-ups, seasonal stores in top resort locations, and private stores.

Behold the super mega flagship store

What: Shopify announces multiple updates to its platform with AI at its core.

Why it is important: The updates will support merchants in their productivity as well as upgrade their experience on the Shopify ecosystem.

The Summer 23 updates include Sidekick, Shopify Magic, and Marketplace Connect.

The Sidekick tool allows entrepreneurs to engage in conversation with the AI which will in turn optimise workflow and facilitate business decisions. Shopify Magic also aims to enhance the merchant experience by introducing personalised AI-generated FAQ responses, content creation, and optimised emails. Marketplace Connect streamlines the management of multiple sales channels for merchants by enabling them to sell directly on major retailer sites such as Amazon and eBay.

Shopify launches first AI-powered commerce assistance 

What: Inditex will stop sourcing clothes from Myanmar in phases as a plan to leave the country

Why it is important: Inditex is joining the textile and garment companies that have chosen to pull out of Myanmar.

Due to global labour union IndustriALL’s campaign about not investing in Myanmar because of the state of emergency, Inditex has chosen to responsibly withdraw from the country in phases. This is following the 2021 military coup in Myanmar.

The company has yet to announce when exactly they will leave the country or their number of Burmese suppliers.

Other brands that have participated in the withdrawal include H&M, Bestseller, Benetton, and Primark.

Inditex to make ‘gradual’ exit from Myanmar

What: Peek & Cloppenburg has opened a new multi-label store in Bonn.

Why it is important: P&C is sticking to its cooperations and planned locations despite the ongoing insolvency proceedings.

The modernized building spans 6,500 square meters of retail space across three floors with women’s fashion, menswear, and accessories.

The store features a Boss shop-in-shop as well as special areas by Tommy Hilfiger, Polo Ralph Lauren, and Marc O’Polo.

The ground floor features menswear, while the first floor is dedicated to women’s fashion and the second floor houses cocktail and eveningwear. Lounge areas are featured throughout the building to encourage customers to increase the length of their stay.

P&C Düsseldorf opens in Bonn

What: Westfield gives an overview of the financial performance and tenant sales of the first half of the year.

Why it is important: The report gives an insight to the company’s financial health and the retail industry.

The company reported that the adjusted recurring earnings per share (AREPS) rose 6.6% to EUR 5.28 in H1 which was driven by the strong operational performance in retail and offices.

The like-for-like net rental income was up 8.2% at EUR 1.152 billion with its shopping centres making up the bulk of it at EUR 1.059 million. Tenant sales rose 9.2% YOY in H1.

Bankruptcies increased in H1 to 211 stores, due to government support and rent relief provided during the Covid period coming to an end with more than a quarter of stores affected being in France.

The group signed 1,180 leases with the proportion of long-term deals signed increasing and vacancies for shopping centres decreasing.

Westfield owner says tenant sales still rising in H1 

What: The social network is planning to enter e-commerce in the US.

Why it is important: This is not a marketplace approach, but a fully controlled retail one, which could put Tiktok on the map of retail and disrupt the fashion trade as we know it.

TikTok, the social media platform owned by Chinese company ByteDance, is reportedly planning to launch an online retail store on its U.S. app as early as next month. Unlike the current TikTok shop, which allows brands to sell products for a fee, the new initiative will involve TikTok handling inventory, warehousing, logistics, and customer service.

The company aims to take advantage of "social commerce" and leverage user data to refine its product offerings and shopping experience. However, the move also raises concerns about supply chain practices and environmental impact, drawing comparisons to Shein, a Chinese fast-fashion retailer accused of human rights violations and environmental harm.

Despite the potential benefits, the success of TikTok's e-commerce venture is far from guaranteed due to the complex and costly nature of setting up a supply chain and managing inventory.

Tiktok to open an online retail store in the US 

What: US retailers are accelerating in the health and care sector.

Why it is important: While in Europe wellness is related to self-pleasure, in the US it tends to be more related to health itself, due to the differences in terms of social security systems.

Retailers are capitalizing on the consumer demand for personalized, accessible healthcare, stepping into the space typically filled by traditional providers.

Companies like Best Buy, Walmart, and Walgreens are integrating healthcare services into their offerings. For instance, Best Buy is leveraging tech for remote patient monitoring, Walmart plans to double its in-store clinics, and Walgreens aims to include full-service doctor's offices. Amazon is also tapping into the healthcare sector with prescription delivery and virtual and in-person healthcare services. Chewy.com is focusing on pet healthcare with wellness and insurance services.

However, privacy concerns could pose challenges as customers might be wary of sharing personal health information with these retailers. The shift indicates a possible future where retailers could become significant players in the healthcare industry.

In the US, retail healthcare expands 

What: Klarna recently announced Klarna Spotlight, which provides an AI-powered personalized shopping feed on its app.

Why it is important: Retailers are increasingly implementing AI to enhance their customer experience and tailor product recommendations.

The functions of Klarna Spotlight include a personal shopping assistant that connects consumers with product advice experts and a resell functionality to sell pre-loved items on secondhand marketplaces with the help of prefilled listing choices and more.

65% of consumers said they want the shopping experience to become more personalised in the future, and AI-powered shopping feeds can help consumers find the most relevant products.

As technology advances, consumers are spending less time searching for goods and being matched with items they love, the products find them.

The AI retail market is expected to reach more than USD 34 billion by the end of 2030 and AI, AR, and robots are likely to dominate the physical and virtual retail experience in the future.

Klarna is looking toward the future with its AI-powered shopping tool

What: Chinese e-tailer reportedly preparing to enter the US stock market.

Why it is important: The listing could make Shein the biggest Chinese company to go public since the debut of mobility giant Didi Global (valued at USD 68 billion) on the New York Stock Exchange in 2021. Shein was valued at more than USD 60 billion (EUR 55 billion) in a USD 2 billion (EUR 1.83 billion) seed round in March.

Shein has been considering a U.S. IPO for at least three years, but the plan has so far been hampered by the close scrutiny that U.S. authorities place on Chinese companies and their accounts and the resulting market volatility of the Covid-19 pandemic and the war in Ukraine.

A spokesperson for Shein denied the rumours of the company preparing for an IPO.

Shein reportedly preparing to enter the US stock market

What: Poshmark releases ‘Posh Lens’, a tool that allows shoppers to use photos to search for items on their platform.

Why it is important: After being acquired by Naver, Poshmark began to implement its AI and visual search technologies that will improve search functionality.

Posh Lens will offer shoppers the ability to track down specific pieces with just a photo. This launch was also coupled with Posh Shows, a livestream shopping capability, in April.

Second-hand retailer, Poshmark adds visual search tool to app 

What: Uniqlo is making the most of the return of Chinese shoppers in stores.

Why it is important: The Chinese consumption recovery is a reality however for now it did not translate on traditional external markers (Europe).

Uniqlo's parent company, Fast Retailing, is predicted by analysts to report a 25% increase in profits for Q3, setting a new record for the company. This comes as the retailer's recovery in the Chinese market continues, with sales and profit seeing a sharp uptick since January.

Fast Retailing has over 925 Uniqlo outlets in mainland China, surpassing the number in Japan. Furthermore, the company's shares have seen a 30% rise this year, contributing to founder Tadashi Yanai's status as Japan's wealthiest individual.

In light of pandemic restrictions in China, Uniqlo has been concentrating on its North American and European operations, with plans to expand from 61 to 200 stores in North America by 2027.

Uniqlo’s profits are soaring thanks to a Q3 record in China 

What: The Q2 luxury spending of Chinese consumers is higher than expected from Q1 surveys and the jewellery category has overtaken handbags as Chinese nationals choose to shop more conservatively by investing in luxury purchases rather than indulging.

Why it is important: Despite concerning economic situations such as job security and stringent zero-Covid policies, the upper class of China continues to drive the recovery of the Chinese luxury market.

Chinese consumers are making a comeback in the luxury fashion market with reports showing that two-thirds spend over RMB 15,000 on luxury fashion products in Q2 2023. Wealthier millennial and Gen Z women above 25 years old are the main high-end consumers.

Chanel and Dior were the most purchased luxury brands, followed by Gucci, with 87% of brands seeing an increase in the number of consumers purchasing luxury brands during this period. The jewellery sector is more appealing to consumers now due to the retainment of value as compared to leather goods; the high price point is accessible to the very wealthy who are the top consumers of luxury. Van Cleef & Arpels and Rolex are forecasted to see the greatest percentage gains in Chinese consumer sales in Q3.

Chinese tourism is set to rise in the second half of 2023 which in turn will amp up international spending, particularly in the UK and EU where there is price favourability.  Luxury brands have strategised to set up salons and boutiques to also appeal to the ultra-high net worth clientele.

Q2 sees the Chinese luxury market perform beyond Q1 expectations

What: The brand has opened three pop-up bookstands in Shanghai, repurposing local coffee shops to sell books, including City Guides, Fashion Eye, and Travel Books.

Why it is important: This strategy appeals to the cultural consumer trend in China where the distinction between consumption and collecting is key. Even seemingly simple items like branded books or tote bags can become desirable collectors' items, contributing to the luxury experience beyond high-ticket products.

The bookstands' colors reflect the Beijing, Shanghai, and Chengdu editions of the Louis Vuitton City Guide. Customers who buy at least two books receive an eco-friendly tote bag, a move that has driven significant offline and online traffic. The hashtag “LV Bookstore” has accumulated over 168,800 views on the Chinese social media platform, Xiaohongshu.

Louis Vuitton has strategically maintained its brand exclusivity and community engagement by converting individual shops in popular Shanghai neighbourhoods into bookstores rather than partnering with a national coffee or tea chain.

Louis Vuitton opens pop-up bookstands in Shanghai

What: Generative AI in the beauty industry

Why it is important: Incorporating AI in the beauty industry can simplify the shopping process for customers as well as give businesses clear information on what customers are looking for and their shopping habits.

Search queries are a major part of online activity, with potentially half of them going unanswered. Generative AI can help facilitate the shopping process by connecting consumers with brands, providing personalized recommendations, and helping brands stand out in saturated markets such as the beauty industry.

For example, the company, Haute AI, provides tailored product recommendations based on images submitted by its clients on its SkinGPT tool. Another example would be a person going into a chat with AI and requesting a skincare routine and leading the search with a picture of their skin or a product that they would like an alternative to.

The full implementation of AI requires education on how to understand the value of information that the tool can provide for businesses in content creation and standing out with a unique identity.

AI can also lessen the barrier to entry for aspiring entrepreneurs as there is readily available information on how to start a business and AI can assist in sorting them and applying them.

How generative AI will shape the face of the beauty industry

What: Olympic merchandise point-of-sale locations are opening in Paris and other French cities in anticipation of the 2024 Summer Olympics.

Why it is important: The Olympic Games organisers have set a sales target of EUR 2 billion in derivative products, so setting up stores in various convenient locations will help reach the goal.

The Paris 2024 stores have opened a new point of sale in the Carrousel de Louvre which will appeal to and attract millions of international shoppers that visit the museum. Other official store locations include the first one at the Forum des Halles in Paris and more planned around the country.

Shops will be set up in the Paris area, as well as Lyon, which will host the football matches, and Lille which will host the handball and basketball games.

The organising committee has entered a partnership with the property company URW, where the stores in the agreement will host meetings with athletes and sports activities. Eight total addresses are planned in its shopping centres.

Paris 2024 Olympics: the official stores are rolling out in Paris, then in Lyon and Lille

What: The retailer is making progress on its sustainability efforts but still has a long road ahead to make more of an impact.

Why it is important: Macy’s is making efforts towards integrating sustainability across all its business through its social service platform.

Macy’s launched its social service program, Mission Every One, last year. The program allocates USD 5 billion through 2025 to programs and strategies that are aimed at creating a more equitable and sustainable future.

The platform guides, encourages, and challenges employees to consider the three pillars of impact: people, communities, and planet against their strategies, operations, and decision-making.

The retailer directed USD 1.4 billion of its spend in fiscal year 2022 to the program and is working towards embedding the platform and sustainability into all aspects of its business. Macy’s is also half way to meeting its 2025 goals with 3,000 sustainable product pages added online.

Last year, Macy’s provided increased transparency into its private brand practices and also created partnerships with industry advisors to help further their work and scale faster.

In November 2022, the company set new near-term science-based emission reduction goal, building on its emission reductions from 2018 to 2021 where they reduced scope 1 and 2 emissions by 20%.

Macy’s CEO gives progress report on sustainability initiatives

What: Fashion retailers and brands are embracing faster delivery as consumers are becoming more demanding such as a new on-demand app that makes deliveries in 90 minutes.

Why it is important: Faster delivery models are appealing to customers and give retailers the opportunity to keep up with pure players but are expensive and complex to offer.

A startup in London has created a bike delivery service that makes deliveries from fashion stores within 90 minutes or less.

The goal of the app is to help brick-and-mortar stores keep up with digital pure players.

While customers are attracted to faster delivery, these delivery models are expensive and complex and also introduce a risk of cutting corners on service to achieve speed. The impacts that ultra-fast delivery can have on the environment also need to be taken into consideration.

Other examples of ultra-fast delivery in fashion and beauty include Farfetch, which offers 90-minute delivery in select cities, and a service called FastAF, which delivers beauty and health products in under two hours. Marks & Spencer offers same-day clothing delivery as consumers’ expectations are changing to expect same-day delivery.

In order to maintain service quality and achieve higher satisfaction levels, retailers should focus on the importance of offering flexibility. Customers should be able to choose the delivery time and day and also have the ability to reschedule the delivery.

Does fashion need 90-minute delivery?

What: Runway Vietnam opens a new store in response to the growing Vietnamese luxury market.

Why it is important: The Vietnamese luxury goods market is approaching USD 1 billion in revenues and Runway Vietnam opened its multi-brand store to meet the rising demand.

The 7,535 square-foot store at Diamond Plaza is designed with a modern aesthetic and is split into two sections to cater to two different kinds of clientele: women who value creative and original elegance, and the other to younger generation customers with a more urban and experimental brand mix.

The founder of Runway Vietnam, Anh Tran, notes the duality of luxury and that it can be both exigent and laid-back. Brands featured include Comme des Garcons Play, Jacquemus, The Attico, Self-Portrait, Theory, Forte Forte, Ganni, Zimmermann, Studio Nicholson, Eenk, Comme des Garcons, Junya Watanabe, Rick Owens, Off-White, Marni, Fear of God, Ambush, and Pushbotton.

The Vietnamese luxury sector is expected to grow 3.2% annually in the next 5 years due to the growing middle class and the rise in the number of high-net-worth individuals.

Runway Vietnam expands with new duplex store at Diamond Plaza 

What: According to a survey conducted by Boston Consulting Group, the Middle East is expected to double in size by 2030 and grow to EUR 30 billion to EUR 35 billion.

Why it is important: The Middle East is becoming a new frontier of luxury with Saudi Arabia and the UAE becoming lucrative markets for Western luxury labels. The majority of labels looking to enter the Saudi market are partnering with the Chalhoub Group.

The Middle Eastern luxury goods market, currently estimated at EUR 15 billion, is expected to double in size by 2030, growing up to EUR 35 billion.

Reports from Altagamma and McKinsey confirm these expectations, with an estimation that the Middle East is the market with the highest growth potential.

Factors contributing to this growth include the region's increasing appeal due to geopolitical tensions, the influx of wealthy individuals from China and Russia, and Saudi Arabia's efforts to modernise and diversify its economy through luxury tourism

Saudi Arabia is especially expected to be a lucrative market, as it has been developing commercial spaces dedicated to luxury and is one of the few countries with virgin territory. The country is expected to EUR 6 billion in terms of luxury goods sales by the end of the decade.

Western luxury labels who are looking to enter the market have been joining forces with Chaloub Group, one of the Middle East’s leading distributors of luxury brands.

Middle East luxury market to double in size by 2030, says BCG