What: Joining other retailers investing more in augmented reality, Walmart announced this week that it will release two new app-based AR tools for at-home and in-store shoppers.

Why it is important: The new “view in your space” feature, which will be rolled out to all customers by early July via the iOS app, allows shoppers to view select furniture and decor items in their spaces. This will initially be available for 300 items but Walmart will expand the offering to back-to-college items in the coming months.

The other feature – which does not have an anticipated launch date and is still in development – is an in-store AR app feature to personalize product information. Shoppers and employees will be able “to simply point their mobile device camera at our store shelves via the Walmart app to filter our assortment based on your personal preferences,” per the post.

Walmart to release at-home and in-store AR tools

What: Simon Property Group is testing a search platform that allows shoppers to find in-stock items at participating stores within the mall before or during their visit.

Why it is important: Search capability is key to the efficiency and ease of shopping online. An up-to-date inventory tool like Simon Search could encourage consumers to visit malls that have in-stock items they want – but it could also prevent them from taking part in the aimless window shopping experience malls were once known for.

That could help boost traffic to malls, which has been declining for decades and has yet to recover from pre-pandemic levels. Compared to 2019, visits to indoor malls in May this year declined by 3.8%, at open-air centers declined 5.9% and at outlet malls declined 7.7%.

The digital tool, “Simon Search,” can be used via the Simon app, a mall’s website or the interactive directory located on the property, according to a company press release.

The pilot involves 29 Simon properties. Participating retailers include Anthropologie, Athleta, Banana Republic, Gap, Old Navy and J.Crew, as well as Simon-owned JCPenney and Aéropostale.

Simon tests digital search tool for mall shoppers

What: Fashion companies are looking to build their own resale channels, giving rise to a new class of B2B start-ups that aim to help them navigate the nascent industry.

Why is it important: Resale, once dismissed by brands as an engine for counterfeits has now become a rapidly growing part of mainstream e-commerce. The US secondhand fashion market is slated to reach USD57 billion by 2025. In 2020, resale accounted for 10% of all US retail sales, up from 5% in 2016. In the past decade, the bulk of this market has been dominated by third-party giants like The RealReal, ThredUp, and Poshmark. But, as the space continues to expand, brands themselves are looking to control the customer journey in the pre-owned realm.

This trend has given rise to a flurry of resale-as-service platforms that handle the backend process of a brand’s owned resale business, which includes inventory collection, verification, and ultimately, sale. Some of the category’s newest entrants include Lululemon, Net-A-Porter, and Hugo Boss, working with RaaS firms such as Trove, Reflaunt, and Faume.

For brands, resale isn’t necessarily a revenue driver but about being part of a consumer experience that’s happening with or without them. While retailers are betting it may eventually become a profitable part of their models, most are focused currently on resale’s potential for driving customer acquisition and loyalty.

Brands are racing into resale

What: The real estate company reports that the leasing activity is soaring again.

Why it is important: More flexible lease terms might become the norm, and this might impact in turn the types of conditions that department stores can negotiates with brands leasing locations in their premises.

Simon Property Group reported a strong momentum in leasing and sales during Q1 2022, with an occupancy rate of 93.3%, compated to 90.8% a year ago. This represents more than 900 leases and more being discussed with new potential partners. As a consequence, SPG gross annual rent revenue rose to 5.4% this year from 4.2% a year ago and 1.9% in Q4 2021.

More flexible lease terms are offered to tenants, with “overage rent” based on sales, on top or instead of a fixed base rent.

Simon Property Group reports a rise in short-term leases in the US 

What: Net sales across Nordstrom stores exceeded pre-pandemic levels in the first quarter with a 23.5% jump thanks to Americans buying designer apparel and footwear as they return to offices and social events snapped up. Both Nordstrom and Nordstrom Rack banners post double-digit sales growth.

Why it is important: Counting on demand from affluent consumers to help overcome inflation, Nordstrom shows confidence by raising its annual profit and revenue forecasts.

Nordstrom, which also authorized a new $500 million buyback, projected fiscal 2022 revenue to rise 6% to 8%, compared with a prior forecast of 5% to 7% growth. Full-year adjusted profit per share is expected between $3.38 and $3.68, higher than $3.15 to $3.50 earlier.

Meanwhile, its off-price division, Nordstrom Rack, posted a 10.3% increase in quarterly sales.

Total revenue rose 18.7% to $3.57 billion in the first quarter, surpassing analysts' estimates of $3.28 billion. The retailer said net income for the quarter ended April 30 rose to $20 million, or 13 cents per share, from a loss of $166 million, or $1.05 per share, a year earlier.

Nordstrom Q1 results 

What: Neiman Marcus Group intends to make an impact on environmental issues across its entire value chain.

Why is it important: In 2021, Ne4iman Marcus worked with merchants to set some preferred attributes and build those into its product management software system with the goal of increasing revenue from sustainable and ethical products.

Circular services with services like alterations and restoration being offered to extend the lives of loved luxury items have also seen a notable expansion in recent years. In 2015, NMG piloted a partnership with The RealReal, followed by an initiative to work with Rent the Runway in 2017. Most recently, NMG has become the first luxury retailer to make a long-term equity investment in resale with Fashionphile.

In further alignment with its customers’ asks, NMG has also made progress in its commitment to go fur-free by 2023, and is working with brand partners to increase revenue from the sale of sustainable and ethical products by 2025.

One brand partner NMG has created a relationship with is Prota Fiori, the luxury footwear company that uses sustainable leather alternatives to manufacture footwear. The brand’s mission is to preserve a connection between craftsmanship and sustainability.

Neiman Marcus Group is leveraging partnerships for greater ESG impact

What: The Neiman Marcus Group communicates on its social and environmental commitments, as an illustration of its ability to reinvent itself through employees empowering.

Why it is important:  The group has released its first ever ESG report in March 2022, confirming that sustainability and social commitments are now must haves for all retailers.

The Business of Fashion makes an extensive coverage on how Neiman Marcus is nurturing a growth mindset within its organisation, to make sure that the USD $600mn investment planned in technological, store and supply chain areas will be exploited at its fullest potential by the teams. This involves:

• The adoption of Farfetch’s technologies to power the Bergdorf Goodman website and app (following an investment of USD $200mn made by Farfetch into the group). This also involves upskilling employees to make sure they use the in-house digital tools,
• A focus on sustainability and social commitment, through a majority women-led leading team and the use of ESG KPIs in daily operations. The company has released its first ever ESG report in March 2022.

Geoffroy van Raemdonck, the CEO, has formalized this mindset under the name “the NMG Way”, based on 5 pillars: be bold, be memorable, be trustworthy, be all heart and be the best. He also encourages what he calls “micro-ideas”, i.e. making sure that everyone in the teams has the possibility to voice new ideas and put them into action.

Digital and cultural transformation at Neiman Marcus Group 

What: Alannah Weston, chairman of Selfridges Group, is moving on after nearly 20 years of family ownership.

Why it is important: Weston’s late father Galen Weston purchased the store in 2003. Last year, the Weston family sold the store to Thailand’s Central Group and Austria’s Signa. Alannah Weston will be taking a break before working on her environmentally focused projects.

Selfridges’ chairman is leaving the company 

What: The company collected almost USD 50 million in rent and close to USD 100 million from its attractions, among other revenue sources, but incurred more than  USD 230 million in expenses according to its filing with the Municipal Securities Rulemaking Board.

Why it is important: The ongoing pandemic continues to affect customer behaviour, supply chains, and the economy which has led the The American Dream mall to lose close to USD 60 million last year.

American Dream lost USD 60M last year

What: Changi airport maximizes the opportunities to experience and feel, in order to become a destination per se.

Why it is important: An interesting feature is the giant slide, which is similar to what has been seen already at Showfields (US) which has made it an Instagrammable asset. The fact that to use it customers have to be holders of the loyalty card creates at the same time a sense of urgency to be member of the program, but also a sense of belonging and exclusivity.

Changi airport in Singapore has set up a calendar of activities aiming to make the place a destination in itself, instead of being a transit platform. For instance, in May 22, Changi offered a “night at the airport family camp” experience, which allowed families to camp in tents with air mattresses in the Changi Canopy Park.

Workshops are also available, and more interestingly, some features are designed to create a sense of belonging and exclusivity: in Terminal 3, a giant slide is available only to holders of the airport loyalty card, for a maximum of 10 rides a day. Tokens are not digital: they have to be redeemed at a counter where other products are also available for purchase.

Singapore airport goes big on entertainment and retail 

What: Harrods has finally appointed its first chief financial officer in five years.

Why is it important: Tim Parker will join the business after 10 years at Hong Kong-based, London-listed conglomerate Jardine Matheson.Parker’s knowledge of international markets will help with Harrods growth initiatives which include boosting its presence in China and the Middle East.

Harrods names new finance chief 

What: Through a new partnership with Trust for Public Land, Macy’s customers raised nearly USD1.5 million to help fund the organization’s Community Schoolyards projects.

Why is it important: To advance its sustainability priorities, Macy’s highlights new initiatives and introduces new partnerships with Better Cotton, Trust for Public Land and HERproject.

Through Mission Every One, the company’s social purpose platform, the company is increasing the use of sustainably sourced raw materials and fibers incorporated into the design of Macy’s exclusive brand products – including cotton, synthetic and all wood-based materials.

Macy's and its customers helped communities across the country become more resilient to climate change and empowered youth through a new partnership with Trust for Public Land (TPL). These projects help transform barren public parks into green spaces to help create healthy, livable communities for the public.

To champion the advancement of women's rights, women's equality, and family well-being, Macy’s, Inc. is partnering with Business for Social Responsibility’s (BSR) HERProject to empower women to improve health, well-being, confidence, and economic potential of women working in our factories globally.

Focused on circularity innovations to help reduce, reuse, and repurpose materials to eliminate waste, Macy’s introduced a partnership with the Give Back Box.

Through a well-established program overseeing the production of Macy’s private brand product ensures labor and environmental standards are met and that suppliers follow those standards. To enable customers to find and choose more sustainable products, Macy’s is making sustainable style more accessible by making it easier to find and shop at Macy’s for products that are independently certified as responsibly made.

Macy’s, Inc. proactively and continuously engages with stakeholders on issues that span the breadth of the company’s operations including transparency, product responsibility and supply chain management, energy management, diversity and inclusion and building resilient communities.

Macy’s raises nearly USD1.5 million 

What: The Chinese e-retailer has noticed that sales growth slowing from the beginning of the pandemic, just as it faces mounting pressure to live up to a $100 billion valuation.

Why it is important: While revenue last year was overall in line with company expectations, what is concerning for the top executives is that expansion was strong in the first half of the year but decelerated at a worse-than-expected pace in the second half, with the slowdown continuing into 2022.

Shein saw annual sales growth slow to around 60 percent in 2021 which is a drastic change from the significant 250 percent growth in 2020, when the arrival of Covid-19 turbocharged e-commerce demand from consumers stuck at home.

The deceleration also comes as the company gets caught between the polar opposite pandemic approaches of the US and China. While life in America normalises to pre-Covid norms and shoppers venture out more, China’s rolling Covid lockdowns as the country continues to try and stamp out all infection.

Shein's difficulty in maintaining high growth reflects a wider problem for China's cross-border e-commerce sector, which in 2020 outpaced traditional exporters to grow by 40% thanks to tax breaks and Western consumer demand. Last year, growth slowed to 24.5%.

Shein’s growth slows

What: Macy’s, Inc. reported financial results for the first quarter of 2022 and updated its annual guidance.

Why is it important: Diluted earnings per share of USD0.98 and adjusted diluted earnings per share of USD1.08. This compares to diluted earnings per share of USD0.32 and adjusted diluted earnings per share of USD0.39.

Comparable sales were up 12.8% on an owned basis and up 12.4% on an owned-plus-licensed basis. Digital sales increased 2% year-over-year while increasing 34% versus the first quarter of 2019. Digital penetration was 33% of net sales, a 4-percentage point decline from the first quarter of 2021, but a 9-percentage point improvement over the first quarter of 2019.

Macy’s comparable sales were up 10.7% on an owned basis and up 10.1%, on an owned-plus-licensed basis.

Star Rewards program members made up approximately 69% of the total Macy's brand owned-plus-licensed sales on a trailing twelve-month basis, up approximately 6 percentage points versus the prior year.

Consumer shopping behaviors shifted during the quarter to more occasion-based apparel. As a result, dresses, women’s shoes, accessories, and men’s tailored had strong sales performance.

Bloomingdale’s comparable sales on an owned basis were up 28.1% and on an owned-plus-licensed basis were up 26.9%. Bluemercury comparable sales were up 25.2% on an owned and owned-plus-licensed basis.

Gross margin for the quarter was 39.6%, up from 38.6% in the first quarter of 2021.

Macy’s, Inc. Reports First Quarter 2022 Results

What: A luxury store is not only for shopping anymore, but can also involve dining, drinking, having a cultural experience, or showing off on social media.

Why is it important: Social media and pop culture increasingly turned luxury brands into key signals that “you are living your life well.” This desire to spend time with the brand coincides with the need to sustain and increase the traffic in the stores. For large brands, the increase in productivity of existing stores has become as important as opening stores and it starts with generating additional traffic.

Flagships are key places to host the most exclusive clients, who need more than amazing products and a VIP salon but experiences that will make the moment memorable. The “right” experiential feature is the alchemy of a specific narrative that both fits the brand DNA, and the flair of the specific store location, as it creates the sense of cultural depth that makes for a truly satisfying lifestyle experience. Cafés, art galleries, concerts, barbers, clubs, and experiences that are meant to be relived several times are recommended.

Experiential flagships are the next big thing

What: Magazine Luiza SA reported net revenue of USD 1.7 billion in the first quarter of 2022, up 6.2% year-on-year, signaling a return to growth after a decline of 6.6% in the previous quarter.

Why is it important: Total sales in Q1 2022 were up 13.2% to USD14.12 billion compared to USD12.47 billion in the same period last year. The result can be largely attributed to the recovery of physical store sales, which grew 6% to USD4 billion, and the company’s sustained e-commerce business. The latter reached USD10 billion, representing a 10% increase year-on-year.

Brazilian magazine Luiza returns to growth

What: Nordstorm is striving to provide customers with more convenient and interconnected digital and brick-and-mortar experiences.

Why is it important: Nordstrom Inc. continues to be focused and acts with urgency and sees strong evidence that its “Closer to You” strategy is working.

The agenda calls out the Rack off-price chain, the market strategy leveraging physical and digital assets to provide greater services and conveniences, and digital sales as Nordstrom’s biggest growth opportunities for the future.

Nordstrom will report its first-quarter results on May 26, but for the fourth quarter of last year the company showed progress in its strategic initiatives and efforts to recover from some merchandise and pricing misses of previous quarters, reporting a big boost in earnings to USD200 million from USD33 million in the year-ago period, while sales rose 23% to USD4.38 billion versus USD3.55 billion in the same period in fiscal 2020, and decreased 1 percent versus the same period in fiscal 2019.

For 2022, Nordstrom projects revenue growth, including retail sales and credit card revenues, of 5 to 7% versus fiscal 2021; earnings before interest and taxes of 5.6 to 6% of sales, and earnings per share of USD 3.15 to USD3.50, excluding the impact of share repurchase activity, if any.

Keeping Nordstrom focused

What: Retaildetail reviews the changes taking place within Inno and questions the lack of radicality in the decisions made.

Why it is important: Inno is a household name in Belgium but no company is too big to fail anymore in retail.

Inno from Belgium has been founded in 1897 under the name “A L’Innovation” and was a pioneer in Europe for this retail format (A l’Innovation is a founding member of the IADS). The celebration of its 125th year of existence is turbulent: due to cash issues, the company had to put half of the staff on temporary unemployment a few weeks ago, and even though they are back in stores now, the malaise is here. The company belongs to Galeria Kaufhof.

A new CEO, Armin Devender, took office in 2019 with a clear plan:

• Rejuvenation of the stores both from a physical perspective and in terms of brand and product assortment,
• A higher brand positioning, leading to a full rebranding of the company,
• More room for food and catering, including partnerships with F&B companies such as lunch chain BON,
• The launch of an e-commerce cum marketplace website.

However the article questions the speed of changes implemented within the company. Short of cash and without much time ahead, it seems that Inno should be making more radical choices, just like what other department store companies such as Galeries Lafayette have done by transferring the property of their stores to other companies.

Is Inno ready for the next 125 years? 

What: Walmart’s sales growth slowed in the first quarter, and the retailer’s U.S. operating income took a USD1 billion haircut. Comparable sales in the U.S. rose by 3% and were up 9% from 2020.

Why is it important: Inflation took a toll on the company’s top and bottom line, with fuel, container, storage, and other costs spiking. At the same time, customers pulled back spending on high-margin general merchandise to compensate for rising food prices.

Walmart’s Q1 is another sign that consumers are changing their purchases to adapt to inflation. Along with pulling back on general merchandise, which as a category fell by low single digits at Walmart U.S., to account for price hikes in grocery, executives said that customers were trading out name brands for lower-priced private labels.

 Walmart’s profits take a hit 

What: Walmart is testing a new delivery method in Arkansas with a smart box system.

Why it is important: Displays of innovation are an efficient way to be visible and improve the perception of the company potential investors could have. This delivery method seems hardly scalable or financially sustainable, however it is presented as a true innovation.

Walmart uses HomeValet’s temperature-controlled smart boxes to make a trial and deliver groceries contact-free during the whole day. The box includes a freezer, a fridge and a dry storage, and opens with a one-time code for associates, and a permanent one for home owners.

The set up is currently being tested and Arkansas and could roll out in other states if there is interest from customers.

Walmart tries smart box for home delivery 

What: Lacoste Arena flagship opened this week at 17,200 square feet, four times bigger than its current door.

Why is it important: A two-year overhaul was needed to redesign the space, which was once a cinema. The result is a series of interconnected spaces where the full extent of the brand’s offering unfolds.

An interactive tunnel, with tennis balls projected onto the floor that can be kicked and heard bouncing away, lead to another room dedicated to the brand’s tennis, golfing, and activewear offerings.

A neon sign stating, “Lacoste fait son cinéma,” a play on the store’s lieu and a French expression that loosely translates to “Lacoste’s antics,” leads to a cavernous basement space with another XXL screen.

For the opening, it will be home to an exhibition around Gaumont, the first of a rotating program of exhibitions and activities like an indoor tennis court or a golf simulator.

A space dedicated to sustainability offers a take-back program and the brand’s circular designs, shown on hangers made from recuperated material. But the real heart of the matter is product durability.

Shoppers will be able to compare existing shirt designs thanks to a carrousel inspired by the machine used to make its signature piqué knit and browse that rainbow of shirts seen upon entering.

Lacoste’s largest flagship opens on Champs-Élysées

What: Lotte Shopping reported a net profit of 69.1 billion won ($54.2 million) in the first quarter, beating market expectations of 37.9 billion won,

Why it is important: Profit rose as footfalls increased at Lotte Department Store branches with the easing of restriction rules. Department stores sales in Korea rose 9.8% on year to 726 billion won.

Lotte Shopping Q1 results

What: Flannels is doubling down on its partnership policy: after the Barry’s gym club, a ESHO clinic.

Why it is important: The partnerships are especially well chosen when it comes to targeting a specific demographic or customer.

Flannels has made a partnership with ESHO, a DTC cosmetic brand launched in 2021 renonwed for its non-injectable treatments for lips, to open a social media ready clinic with live streaming screen which will transmit to the shop, a Hydrafacial bespoke suit, a champagne recovery room for non-injectable customers, and customers will also have the possibility to buy in person the products, which is a premiere.

The Flannels store in Liverpool will span over 12,000 square meters and will also include two restaurants and a roof top.

Flannels to open a cosmeceutical space in partnership in its new Liverpool store 

What: The 17th iteration of the retailer’s concepts at Nordstrom is a multibrand shop it’s calling Sports.

Why is it important: The space features apparel, footwear, and accessories for golf, tennis, running, training, and cycling inspired by nostalgic sportswear. Five of the 16 brands of men’s and women’s ready-to-wear, shoes and accessories will be available at Nordstrom for the first time. Prices will range from USD7 to USD500.

To promote the shop, Nordstrom produced a campaign featuring a cast of real-life athletes, including tennis player Jordaan Ashley, runner Chris Focus, golfer Hayden Sylte and cyclist Ron Holden.

Concept 017: Sports! will launch May 12 and remain in place through the end of July online and at 13 Nordstrom stores around the U.S., including the men’s store in New York and the Seattle flagship.

Nordstrom’s new sports-inspired pop-up