What: Lotte Duty-Free has announced that it will not renew its license to operate its COEX store in Gangnam, Seoul. Once it expires, Lotte plots to maximise sales at its remaining stores in Seoul; The Lotte World Tower (Jamsil) and the Myeongdong flagship store.

Why is it important: The number of domestic duty-free shops in the region has fallen from 57 in 2019 (pre-Covid) to now just 48. However, South Korea’s duty-free sales have displayed ‘gradual improvements’ during Q1 2022. This follows a 15% increase in duty-free revenue to US$14.7 billion in 2021, of which approximately 95% was sales to foreign customers.

Lotte also plans to expand its product and brand offering at both the World Tower and Myeongdong flagship whilst strengthening marketing activities for both.

Lotte announces COEX store closure

What: Neiman Marcus leverages its notoriety to launch emerging designers’ debut collections.

Why it is important: An astute way to create content by supporting creation (and take credit from it) without going into the hurdles of managing a whole private label.

Neiman Marcus has contributed to launching new labels for the past 115 years, by helping emerging designers. This year, they launch Salon 1884, a women’s RTW line designed by American artist Andrea Mary Marshall. The name is inspired by the title of a painting from John Singer Sargent and offers a retro look to customers.

Products are made in New York’s Garment district and made with environmentally friendly materials. The collection is sold in exclusivity at Neiman Marcus online and offline channels.

Neiman Marcus launches a new brand, Collection 1884 

What: Amazon launched a new mobile augmented reality tool called Virtual Try-On for Shoes.

Why is it important: Customers using the Amazon Shopping app can select the Virtual Try-On button on the product page for participating shoes, then use their camera to view the shoes on their feet. Users can also change the shoe colors without exiting the application.

The feature is currently available for iOS users in the U.S. and Canada, and is offered on thousands of shoes from brands such as Puma, Reebok, Adidas, New Balance and more. The retailer plans to add more brands and styles going forward, and will soon expand the feature to Android users.

Amazon launches virtual try-on for shoes

What: Chanel’s Global chief sustainability officer Kate Wylie offers some clarity on the French luxury brand’s latest sustainability report highlighting progress, areas for improvement, and challenges.

Why it is important: Although the privately-held luxury brand offered some insight into their sustainability initiatives, the information seems to offer few details as to how they will combat Scope 3 emissions, which accounts for 97 % of total emissions for the business.

As one of the most high-profile luxury brands globally, Chanel has been slow to open up about its sustainability emissions compared to rivals like Kering, Richemont and LVMH. A notoriously quiet company, the privately-held brand is able to choose what it shares publicly. The latest report marks a shift towards transparency, although at 13 pages, it offers only slight insight into the company’s climate plans at a time when government regulations and consumer scrutiny is growing.

The global chief sustainability officer, Kate Wylie, shared that the focus is to reduce the Scope 3 footprint associated with raw material sourcing, media, transportation, and distribution. But the brands’ silence has only raised more questions and concerns from regulators and advocacy groups as to how they will decrease their Scope 3 emissions.

Notoriously quiet Chanel offers glimpse into sustainability efforts

What: Lisa Aiken, senior vice president and fashion and lifestyle director at Neiman Marcus, is leaving the luxury retailer on July 1.

Why it is important: While disclosing Aiken’s departure, Neiman’s said it created a “strategic integration” between the fashion office and buying teams. Executives said Aiken’s departure was unrelated to the integration.

Under the reorganization, Paolo Riva, Neiman’s senior vice president and general manager for brand partnerships and merchandising, has expanded responsibilities to head up Neiman’s women’s fashion office.

Jodi Kahn has been elevated to vice president of women’s luxury fashion at Neiman’s. She was senior director, divisional merchandise manager of women’s designer ready-to-wear. Her new role gives her buying, merchandising and fashion director responsibilities over women’s. Kahn reports to Riva.

Similar to the women’s side of the business, Russ Patrick, senior vice president and general merchandising manager for men’s, will assume additional responsibilities for the men’s fashion office at Neiman’s.

Neiman’s plans to hire an editorial director to provide content across its different channels. Aiken’s role did have an editorial focus.

Neiman Marcus’ Lisa Aiken leaves

What: Neiman Marcus Group is transcending the volatile stock market and the nation’s sky-high inflation, and generating sales volumes and margin gains surpassing pre-covid-19 levels.

Why it is important: Neiman Marcus attributes their results largely to shoppers returning to stores, digital strength, robust full-price selling, adding luxury brands and exclusives to their offering, and a richer calendar of events “retail-tainment.”

Among the results that were made public, for their third fiscal quarter ended April 30, NMG reported:

• Comparable sales grew over 30 percent, beating pre-COVID-19 levels.
• Comparable gross merchandise value grew in the high 20 percent range compared to pre-pandemic 2019.
• Adjusted earnings before interest, taxes, depreciation and amortization margin expansion of over 300 basis points, compared to the 2019 quarter, and a 150-basis point expansion compared to last year’s quarter.
• Ample liquidity to invest in the business and no outstanding borrowings under the ABL facility.

Neiman Marcus is investing back in the business, including USD 300 million to renovate the Bal Harbour, Florida; Atlanta; White Plains, New York; St. Louis; Oak Brook, Illinois; Houston; Paramus, New Jersey; San Diego, and Tysons Galleria, Va. stores. The figure includes landlord and vendor contributions.

In several cases, men’s, shoe and handbag areas will be expanded, and several incoming brands require building dedicated shops. In some locations, bars and cafes will be added, and new restaurants in select stores are being considered. Food and beverage offerings encourage shoppers to stay longer in the store and buy more. In addition, beauty services will be enhanced, and fitting rooms will be enlarged.

Last year the company invested more than USD 200 million in technology initiatives such as Connect, a tool for associates to communicate with customers; the acquisition of Stylyze; the Neiman Marcus Stanley app, and Digital Labs. In addition, Neiman’s said it’s committed to spending more than USD 90 million to enhance its supply chain, including systems and fulfillment centers.

Neiman Marcus added over 600 new points of distribution with designers and brands in fiscal 2022, including over 200 brands for spring 2022, many of which were exclusive and had an ESG tie. He expects NMG to add another 140 points of distribution in fall 2022.

NGM’s performance reflects continued strong growth driven by their Revolutionizing Luxury Experiences strategy as well as a healthy U.S. luxury customer. They delivered comparable sales growth of over 30% and expanded EBITDA margin by over 150 basis points compared to this time last year, driven by strong full-price selling. While they continue to operate in a dynamic environment, they are well positioned for the future with their differentiated integrated luxury retail model, healthy balance sheet, and strong customer and luxury brand relationships.

Neiman Marcus Group tracks business above pre-covid-19 levels

What: Nordstrom talks about how the retailer is banking on a rebound in tourism to drive excitement in New York and the innovative new Asos space in Los Angeles.

Why it is important: Nordstrom continues to stand out thanks to its laser focus on customer service and a liberal return policy and the Rack chain is the primary vehicle for attracting new shoppers.

Nordstrom reported last month that its total company net sales increased 18.7% to $3.5 billion in Q1 of 2022, compared with the same period in fiscal 2021.

In the first quarter, core categories including men’s and women’s apparel, shoes and designer had the strongest growth against 2021 as customers stepped out again in full force for social events, travel and return to office.

Nordstrom explains, that as tourism picks back up in New York there were a lot of foreign-speaking customers in the stores. Hopefully, tourism continues to build as we slowly come out of the pandemic. Nordstrom is excited to start serving tourists again as there was a bit of a hiatus. They got the opportunity to grow the business with the local New York customer in a more organic way than they ever would have which they believe will serve them well over time.

It is important to have a constant flow of newness in the New York store as the New York customer both gives Nordstrom license and expects them to deliver something new. In the business of department stores, trends just as often start in Southern California and head East as they start East and go West. But the New York customer demands a unique offering. Nordstrom carries the big brands and categories like home where there’s potential to offer super unique brands.

Big cities are important to Nordstrom as young people like to live in cities. Nordstrom sticks to what they’re good at, which is running a great store. Their downtown stores are performing well and now that the world’s opened up, people need clothes that are going to be seen by other people. Customers are going out, going to events, and Nordstrom is here to serve them.

Nordstrom opened the first dedicated Asos in-store space at The Grove in Los Angeles in May, which is a location that has always punched its weight as a destination for influencers. When Nordstrom thought about how to make the introduction of Asos, it felt like the perfect place to do it. There was no prototype Asos store, so they have been making it up. So far, the customer is responding well.

Jamie Nordstrom on the tourist rebound in NYC, the future of cities, and bringing Asos to The Grove 

What: The Italian fashion house collected vintage items from customers in October in exchange for store credit. Now, it’s going to sell them in NY, LA, Milan and Tokyo.

Why is it important: Valentino is bringing vintage Valentino pieces to four global boutiques this month as part of an ongoing push into resale that’s designed to give past collections a new life.

Valentino first launched Valentino Vintage asking owners of vintage items to resell them to the brand in exchange for store credit. Now, those items are available for sale: for a two-week period this June at Madame Pauline Vintage in Milan; The Vintage Dress in Tokyo; New York Vintage; and Resurrection Vintage in Los Angeles, to sell off the vintage collection to new customers.

More luxury brands are getting directly involved in resale to recirculate old collections and gain new customers. Gucci’s Gucci Vault concept also resurfaces vintage house pieces. Other brands have worked directly with resale platforms such as the RealReal and Vestiaire Collective.

Valentino Vintage to take over four secondhand stores 

What: As subscription services shift their strategies, as many as 75% of DTC brands will have a subscription-based offering by 2023.

What it is important: The DTC subscription boom is attributed to Gen Z and millennial shoppers who have begun earning money, especially affluent consumers in urban areas that prefer automated purchasing. On the brand side, the report attributes the growth to platforms like Shopify, ReCharge or Rodeo making it easier for brands to establish their DTC subscription business.

Among the risks DTC brands face in providing subscription offerings are, customer acquisition cost, churning and cancellation, funding, and subscription fatigue.

DTC subscribers tend to be urban women, between 25 and 44 years of age, earning a salary between $50,000 and $100,000 and living on the East Coast. The typical subscriber also frequently shops with Amazon and relies on its product reviews.

The U.S. comprises 47% of DTC subscriptions, followed by Europe (21%) and China (14%). In 2020, the gross merchandise volume of the monthly subscription box segment spiked by 80% compared to the previous year, but the GMV of subscription boxes is expected to decline as the economy normalizes from the pandemic.

75% of DTC brands may offer subscriptions by 2023 

What: Neiman Marcus Group is committed to cultivating a culture of Belonging.

Why is it important: In honor of Pride Month, NMG is celebrating and honoring the LGBTQ+ community with several events, activations, and initiatives aimed at awareness, education, and support for the LGBTQ+ community. These include the Company's continued partnership with the Human Rights Campaign, honoring the LGBTQ+ community with local activations in stores and online, and celebrating Pride with internal virtual events.

As a platinum-level member, NMG will build on its continued partnership with the Human Rights Campaign this June and July to raise funds in support of the LGBTQ+ community through point-of-sale fundraising in all Neiman Marcus, Bergdorf Goodman, and Neiman Marcus Last Call stores. Neiman Marcus will also donate the net proceeds from the sale of exclusive Pride patches and the sale of the Neiman Marcus chocolate chip cookie in Neiman Marcus restaurants, supporting the organization's lobbying efforts for LGBTQ+ equality across the U.S., as well as its broad-reaching programs for youth, families, workplace equity, and health.

Throughout Pride Month, all Neiman Marcus stores will showcase special window installations, curated in-store runway displays, and other themed elements.

NMG will also promote a series of internal conversations, encouraging a more inclusive workplace for LGBTQ+ associates at Neiman Marcus Group.

Neiman Marcus Group emphasizes commitment to celebrating LGBTQ+ Pride

What: After reportedly considering a spinoff of its off-price Rack business, Nordstrom is now pinning its growth ambitions on it.

Why it is important: Nordstrom took steps to enlarge its Rack fleet, then hit the brakes. After internal research showed that off-price shoppers aren’t likely to drive more than about 15 to 20 minutes to access a Rack store, the company decided to resume that effort. Nordstrom which runs about 250 Rack stores, will open four new Rack locations next year, with plans for more.

Rack sales grew 10.3% year over year but fell 3.6% compared to 2019. The company is banking on continued improvement at Rack and taking steps to integrate it more fully into what it calls its market strategy. Some analysts see risk in that approach, warning that as Rack gets bigger and better, the full-line business loses its appeal.

Maximizing profits for the entire company depends on optimal pricing, especially at Rack, where there is more flexibility because it’s not beholden to the MSRP limits seen at full-line Nordstrom. There’s been little resistance from customers since the company began testing price bumps “on certain items and key categories”. That’s in part because the company — both its full-line and off-price business — enjoys the attention of a wealthier customer base that appears to be less rattled by inflation.

Rack’s improvements are essential and Nordstrom’s overall results of late have been encouraging, but “visibility [is] still challenging against macro pressures in the space.”

Nordstrom leans on off-price Rack for growth and profit

What: The John Lewis Partnership has announced the first three locations where it proposes to build new rental homes that would offer the trust, quality and service that people expect from John Lewis.

Why is it important: The homes would form part of the UK’s growing 'built-to-rent' property market as the Partnership seeks to raise standards in rental property, both through its role as developer and a commitment to manage the buildings themselves.

The three proposed sites include building over Waitrose shops in Bromley and West Ealing in Greater London, as well as replacing a vacant John Lewis warehouse in Mill Lane, Reading.

The three locations are the first sites to be announced after confirming the target to deliver 10,000 homes in the next ten years - 5,000 of these will come from schemes on the Partnership's own property portfolio. Moving into the rental homes market is part of our long-term plan for 40% of profits to come from outside of retail by 2030.

The homes would be built for different sized households and designed to our high standards. Residents would have options for short and long-term tenure and to have the homes furnished by John Lewis. Creating a sense of community through incorporating shared spaces and facilities such as roof gardens and fitness studios and exploring how schemes can play a role in the wider community would be integral to our approach.

John Lewis Partnership announces first proposed locations for rental homes

What: H&M will soon reveal its secret weapon to fight supply chain woes and unite the business, from front to back, with data: Google Cloud.

Why it is important: H&M and Google Cloud are on the verge of disclosing a strategic partnership that will inject more intelligence into the very core H&M.

Their connection isn’t brand new, as the companies have been working together for some time. But this will mark a new threshold in the partnership. The work includes a so-called “data mesh,” a system designed to offer more access to all types of data and events from multiple parts of the business spanning stores and e-commerce, as well as its brands’ ecosystem and suppliers.

H&M may be an ideal match as a partner, as the fashion retailer is no stranger to data intelligence. The company employs its own data engineers and analysts. Their work goes into everything from demand prediction and trend-spotting to optimizing for a more sustainable supply chain — an issue that Google Cloud also advocates.

H&M to go big with AI

What: Pinterest is set to purchase The Yes, an AI-powered shopping platform that enables users to shop a personalised feed.

Why it is important: The Yes raised USD 42 million in 2019 from NEA, True Ventures and Forerunner, valuing the company at USD 100 million.

Pinterests’ interest in The Yes comes from the innovative personalised technology and some of the additional features that they have been developing including checkout and brand integration technology, as well as more qualitative aspects including The Yes’ brand relationships and shopping expertise.

Pinterest to purchase “The Yes” shopping platform

What: Big Tech is developing tools to make real voice commerce, or ambient shopping, a reality.

Why it is important: The concept, which envisions people interacting with technology without chaining themselves to a phone or computer screen, once sounded far-fetched. But it’s becoming material through devices like smart speakers and voice-equipped smart displays from Google, Amazon and Apple.

Amazon, the market leader for smart speakers and displays, clocks billions of voice interactions a week from Alexa customers, more than half of whom use their Echoes to shop. The company is informed by its vast e-commerce efforts and its multitude of devices, from its previous Echo Look fashion selfie camera to the latest family of devices.

As voice commerce stands today, it’s most relevant for categories like groceries. That’s only logical, as people often use Alexa or Google Assistant devices to do things, like set cooking timers. But according to AWS, this footprint is expanding. Echo devices have landed in hotels and even surprising places, like gas stations.

Voice tech for retail became even more interesting during the pandemic, as it offered another route for contactless payments. Shopping for fashion by voice will likely take years to become a reality, at least in a meaningful way. But even so, it’s clear that the vision for it is already here.

Voice to commerce

What: This year, the best department store in the US is also the less known outside of the country.

Why it is important: This ranking is based on a survey of more than 10,000 US customer who actually shopped in-person in stores. It is therefore interesting to see that they favour a name which is less widely known internationally and even in the country itself.

In the 2022 edition of the annual Newsweek’s Best Retailers ranking (available here), Von Maur has been named the top department store in the country, before Neiman Marcus, Saks Fifth Avenue, Nordstrom and Bloomingdale’s.

Von Maur is a 150 years-old company, and started to grow out of Midwest, its original region, with stores in Georgia, Alabama, Wisconsin and Michigan states, for a total of 36 stores in 15 states.

They are regularly praised in the specialized press for their customer service (including an interest-free charge card, flexible return policy, free gift wrapping and shipping services), curation and merchandising, and HR policies.

Von Maur named top department store in the US 

What: Fashionphile expanded its footprint with the opening of a 60,000-square-foot authentication center and showroom in the West Chelsea neighborhood of New York City.

Why it is important: The space will allow customers to shop the retailer’s collection of high-end handbags and accessories while getting an inside look into how the authentication process works.

The space also contains a high-security and climate-controlled storage area called “The Cage,” which holds about 15,000 handbags and accessories, including the largest Hermès Birkin bag collection in the world.

Neiman Marcus acquired a minority stake in Fashionphile in 2019 and appeared on Neiman Marcus’ gift list last year. Offering the chance for shoppers take a first-class flight to Fashionphile’s headquarters to buy vintage pieces.

Fashionphile to bring the luxury resale buying and selling experience to New Yorkers

What: Shopify unleashed a slew of features and updates for its merchants, in a blitz of platform enhancements it is calling Shopify Editions.

Why it is important: Despite the whip-fast development cycle, the changes represent a significant expansion of the Shopify platform, with business-to-business services, NFT support, more integrations with major tech platforms and access to custom back-end code for tailored commerce experiences.

Connect-to-consumer, c-to-c, is next. It describes this new era of commerce as an evolution of direct-to-consumer, where merchants have full control to create personalized and meaningful experiences everywhere, whether online or in stores.

A crucial part of the effort is embedding b-to-b into the heart of the platform. The change allows merchants to sell wholesale to other businesses using the same system they use for retail sales, with no need to wrangle a distinct matrix of complex details across multiple spreadsheets or databases.

Outwardly, the online store experience is similar to the consumer version, but optimized for buyers buying in bulk. Shopify pointed to payment flexibility at checkout as an example. Merchants can set customer-specific prices at fixed rates or as a universal discount on retail prices.

A new era apparently calls for new technologies as well, so the company is also launching support for NFTs in the form of so-called “Tokengated Commerce.”

Tokengated Commerce allows merchants to give NFT owners exclusive access to products, benefits and experiences. Once customers connect their crypto wallets to a Shopify e-commerce store, their NFTs become their access passes to the perks — whether online via computers and phones or in physical stores, if equipped with a supporting POS system.

Other changes bring new integrations with major technology platforms, including a Twitter sales channel, an iPhone tap-to-pay feature and local inventory integration with Google.

Other changes span dozens of new or upgraded tools for marketing, cross-border commerce and more, including selling plans for features like try-before-you-buy and preorders.

Merchants have to contend with new forms of digital retail, in addition to the traditional challenges of the business. But if Shopify Editions and this c-to-c strategy must go into more complicated territory as a result…well, that’s prime territory for its annual Shopify Unite developer conference to explore.

Shopify unveils new features

What: Shein offers more and more physical relays to get in touch with its fans.

Why it is important: In France, after having recently set up pop-up stores in Toulouse and Montpellier, it is in Paris that the maligned fast fashion site has temporarily set up a showroom, from June 24 to July 10.

The temporary window of Shein takes place at 11, rue des Déchargeurs, in the district of Châtelet. An event designed in partnership with Klarna. Customers who push the door will not be able to buy products directly but will select looks to order them immediately online. Also on the program, style and make-up workshops, a coffee and ice cream stand, a tattoo bar, a DJ, as well as a system for exchanging used clothes. And of course, a 15% off voucher for everyone, with Shein being the bargain price specialist all year round.

At the end of May in the center of Toulouse, the pop-up of the platform generated endless queues hindering traffic. In Montpellier at the end of June, in the Polygone shopping center, more than 9,000 people were expected each day, with a real crowd at the opening. During the two events, climate activists demonstrated against the methods of Shein, who has been singled out for several years for practices that are harmful to the planet and humans. Faced with these accusations, Shein announced in May that it would allocate a budget of 50 million dollars to the creation of a fund supposed to finance initiatives for the management of textile waste.

After its Paris stopover, Shein will continue to host pop-ups in other major European cities this summer, again in partnership with Klarna. He will move to Barcelona from June 30 to July 10, then to Berlin and Rome from July 21 to August 7. A fifth city is soon to be announced.

Shein multiplies their pop-ups (in french)

What: Priorities are shifting for retailers with a  focus on learning how to properly leverage data to continue business growth and customer retention.

Why it is important: According to a survey conducted by CommerceNext, sixty-five percent of retailers cite data management as the biggest problem they face in trying to leverage first-party data.

The survey was completed by asking 114 retail executives spanning brand types and verticals to understand the progress and current trajectory of the retail industry, with a particular focus on today’s top challenges and priorities.

The report also claims 66% of direct-to-consumer companies and 54% of traditional retailers note increasing customer acquisition costs as their greatest challenge to achieving 2022 goals, making it imperative for brands to effectively use first-party data to better maintain customer relationships and personalize experiences.

Brands are now focusing on further investing in digital. Traditional acquisition tactics no longer have a grip on budgets, while retailers focus investments on retention.

Retention is considered the most critical strategy for retail growth. Retailers' focus now is on building customer loyalty and bringing in more first-party data to increase personalization and re-engage lapsed customers. To continue acquiring and retaining customers, retailers are creating more customer-centric experiences to drive engagement.

Diversifying marketing channels appears to be the current answer on how to handle customer acquisition, so businesses better start mobilizing that data.

Retention and leveraging of data: the new focus of retailers

What: Amazon’s luxury fashion vertical, first introduced in the US in September 2020, is now available in the UK, Germany, France, Italy and Spain, the company announced June 8.

Why is it important: Shoppers can browse ready-to-wear pieces online via the Amazon website or the mobile app,  from luxury fashion and beauty labels such as Christopher Kane, Dundas, Mira Mikati, Rianna+Nina and Altuzarra.

Luxury Stores customers in the UK and Europe will benefit from free shipping on their orders. Participating brands will sell their inventory directly to buyers, independently determining assortment and pricing on the platform.

Amazon launches ‘Luxury Stores’ platform in Europe 

What: Fashion aesthetics such as “coastal grandma” and “coconut girl” can rise and fall in a matter of weeks on TikTok. Brands looking to be a part of the next big trend must move quickly, but carefully.

Why it is important: Searches for linen pants increased 66 percent in May on Poshmark, thanks to “coastal grandma,” while searches for pleather bodysuits spiked 83 percent on Google during late March, just as videos featuring “fetishcore,” flooded TikTok.

Keeping up with TikTok fashion can feel impossible. Trends move at lightning speed, and while some terminology becomes a permanent fixture in fashion’s evolving lexicon, others disappear with a swipe.

But with a user base of nearly 1.8 billion, designers and merchandisers at all sorts of brands feel compelled to pay attention to what’s trending on the platform.

Many digital-first brands have built their entire business model on churning out TikTok-inspired styles. Legacy labels, however, are still figuring out their own ways to incorporate TikTok aesthetics into their merchandising and marketing.

Brands should evaluate which trends already work with their own DNA and incorporate them into the faster-moving parts of their business, like social media marketing.

TikTok trends run in “90-day cycles,” with a life span of six months at most. Crucial to keeping up with trending TikTok aesthetics is understanding their nuances and why shoppers are flocking to the look. The key is remaining consistent.

Keeping up with TikTok’s trend cycle

What: All 14 restaurants set to open in Printemps Doha will be supervised by a seasoned executive from the hospitality sector.

Why it is important: This appointment results from a double need to connect the F&B offer to the rest of the store features (especially in terms of systems) while also making sure that all points of sale are coherent with the general concept in terms of level of service.

Printemps Doha has announced the appointment of Paolo Alabiso as head of F&B, overseeing all 14 restaurants that will open in the store.

Alabiso has a track record in hospitality and is also credited with brining in global brands such as Pierre Marcolini to Middle East.

Printemps Doha appoints an hospitality executive to manage F&B 

What: Macy’s chief merchandising officer, Nata Dvir, discussed Macy’s priorities and objectives, as the retailer navigates challenges in the supply chain and shifting consumer shopping behaviors at the Jefferies Annual Consumer Conference.

Why it is important: Dvir started out stating that, Macy’s strengths in gifting, whether it’s for Valentine’s Day, Mother’s Day; tailored clothing, and dresses, though she also cited strides in refined sportswear and the more casual sides of the business.

During the pandemic, part of what Macy’s sharp on was how they thought about inventory productivity. A lot of this was in flight, but the pandemic was an opportunity to think through what the sell-through of an item might be, what is the life cycle of a product. It has really taught Macy’s to think differently about every receipt dollar they spend, but also about making it easier for the customers to shop.

Macy’s is also so excited about so many things that are starting to check. Customers are going back into everything, events, working, and real life. Every moment now feels like a special occasion. Whether they are going up a size, or down a size, they have to really replenish their wardrobe.

Macy’s is conservatively forecasting that sales will be flat to up 1% for the full yea, but has been on a roll the last few quarters including reporting a net profit of USD 286 million in the first quarter this year, up from USD 103 million in the year-ago period, on a comparable sales gain of 12.4%.

It’s expected that among the categories that will be bolstered or will be new to the assortment are toys, pet supplies and technology. Both Macy’s and Bloomingdale’s will be growing their digital businesses by launching marketplace formats next August. Retailers operating online marketplaces procure merchandise through a few business arrangements including revenue-sharing agreements, commissions, wholesaling and drop shipping.

Macy’s is embarking on a sweeping overhaul of its private brand business, which accounts for just under 20% of the total business.

Macy’s CMO on shifting priorities, challenges and shopping trends