What: Printemps hopes to lure in Asian customers thanks to Alipay and Kakao payment options.

Why it is important: Being able to welcome customers from the whole world will  increasingly force department stores to host a number of different payment solutions as the world is fragmenting on this topic.

France-based luxury department store Printemps has integrated Alipay+ to offer its Asian customers a seamless checkout experience. Alipay+, developed by Ant Group, provides global mobile payment and marketing solutions that connect merchants with multiple e-wallets and payment methods.

As a result, Printemps now accepts payment apps popular in Asia like AlipayHK and Kakao Pay, offering real-time in-app displays of payments in euros and the user's home currency. This collaboration is part of a broader marketing strategy, which includes special offers and shopping experiences through customers' payment apps.

This move is expected to boost Printemps's appeal to Asian tourists, particularly from China, as France is one of the top global destinations for them. Printemps first partnered with Ant Group in 2015, adding Alipay to its accepted payment options and introducing instant tax refund services for Alipay users.

Printemps Paris now offers Alipay + as a payment method 

What: The Chilean retailer has launched a digital wallet that unifies payments in one place and offers exclusive benefits to users. using a QR code.

Why it is important: The tool enhances Cencosud’s customer experience and has allowed it to reach a new milestone in Chile.

In addition to unifying payments, the digital wallet offers exclusive promotions, doubles the accumulation of Cencosud points, and offers payment by phone using a QR code.

Customers can also use all types of cards and pay from a personal digital account, add a balance in the app, review payment details, and review returns made online and in the store.

CencoPay is expected to be implemented in other businesses and countries, gradually incorporating new features.

Cencosud launches CencoPay in Chile

What: Mattel has partnered with over 100 brands and gained a large market presence due to the Barbie film.

Why it is important: The importance of collaborations and brand partnerships in boosting the cultural relevance and revenue generation for the Barbie brand.

Barbie collaborations have flooded the market as part of a global marketing push for the highly anticipated film. Over 100 brands and retailers have joined forces with Mattel, ranging from fashion to beauty to homewares. Luxury brands (Chanel, Valentino, Vivienne Westwood, Versace, etc.) even dressed Margot Robbie for the press tour, capitalising on the cultural phenomenon surrounding the Barbie brand. There have also been brands that offer Barbie fans the Barbie look at a much more accessible price point, such as Zara and Impala.

These collaborations provide Mattel with an opportunity to expand its reach and monetise the Barbie brand beyond traditional plastic toys and children’s clothing.

With successful brand turnaround efforts and collaborations driving revenues, Mattel plans to leverage other brands in its portfolio, offering potential for future collaborations and continued growth.

Breaking down the Barbie phenomenon, from Mattel to Chanel

What: Lotte Shopping Co., will Lotte Shopping Westlake Hanoi, the largest shopping mall in Vietnam on September 22.

Why it is important: The mall is in Hanoi’s West Lake new urban area and aims to become a landmark in the city as well as a central business hub to stimulate the local economy.

The shopping mall is located across 354,000 square metres and accommodates 233 stores. The basement will have Lotte Mart, a grocery store, and Bottle Bunker, a wine speciality store.  In addition to the shopping complex, there will also be Lotte Hotel, Lotte World Aquarium Hanoi, and Lotte Cinema.

The pre-opening events for the mall will be on July 28th.

Lotte open’s Vietnam’s largest shopping mall in Hanoi

What: The JLP is diversification plan presented in 2022.

Why it is important:  Even though the move raised eyebrows (and cost the CEO’s position), the JLP keeps on exploring the idea of managing and renting homes, both through new developments and with the redeployment of former department store premises.

The John Lewis Partnership and investment company ABRDN have submitted their first planning applications for 'build-to-rent' sites in West Ealing and Bromley as part of a GBP 500 million joint venture.

The proposed developments, aiming to make 35% of the properties affordable for key workers, will offer 428 and 353 new homes respectively, featuring public piazzas, landscaping, Waitrose shops, and cafes. Additional amenities will include residents’ lounges, dining areas, roof gardens, flexible workspaces, and gyms. All homes will be furnished by John Lewis and offer options for short and long-term tenures. Plans for a vacant warehouse site in Reading will be presented later this year.

John Lewis pushes ahead with plans to build and operate rental homes 

What: Falabella.com becomes the marketplace with the largest logistical capacity after the opening of its two new transfer centres.

Why it is important: The new facilities have nearly maxed out the expansion of Falabella.com in Chile as it now allows them to optimise the deliveries in the extreme areas of the country.

The opening of the two centres – in Arica and Punta Arenas – increases the number of facilities of this type that the company owns from 13 to 17. The CEO, Jaime Ramirez, mentions that the company is decentralizing their operations to be able to service clients in remote areas of Chile.

Falabella.com is already the largest marketplace with the greatest logistics capacity in Chile

What: Tourism and a sustained local demand help Japanese department store to look up.

Why it is important: Department stores are a major distribution format in Japan, and their evolution is heavily scrutinised. We might witness some ’rightsizing’ again in the near future though.

Japan's department stores are leading the retail sales recovery in 2023, according to the Ministry of Economy, Trade and Industry (METI). Despite the declining importance of department stores in Japan's retail landscape over the past two decades, these stores have witnessed a 10.6% sales increase in the first five months of the year. Store productivity also rose by more than 12.9% compared to the same period a year ago.

The recovering tourism sector, with 2 million visitors per month (still below pre-Covid levels), is positively impacting retail sales, particularly department store retailers that rely on foreign high spenders. However, Chinese tourists, a significant portion of pre-Covid visitors, are still only at about 15% of their pre-Covid levels, indicating potential for further growth.

Major department stores like Takashimaya and J. Front Retailing have reported good sales growth, with a significant part of this growth attributed to international tourist arrivals. For instance, Takashimaya's June sales rose by 5.6% year-on-year and their operating revenue for the first quarter was 4.2% higher than a year ago. J. Front Retailing's sales grew by 15.2% in June and 16.4% in the first half of 2023.

Despite these promising numbers, the future of Japan's department stores remains uncertain. Their share of total retail business has been on a steady decline, accounting for only 3.6% in 2022, down from 7.0% in 2002. The sustainability of the current growth will be tested in 2024 when the effects of post-Covid normalisation wear off.

Department stores lead retail growth in Japan 

What: The retailer has introduced new products to its advertising service.

Why it is important: The new range of options aims to accompany customers throughout the shopping experience, providing visibility, recognition, and engagement with its different firms.

Falabella Media works with over 120 brands and is looking to further enrich its proposal and alliance with these brands so it can reach consumers and connect with them through different advertising services.

Some of the new features include real-time messaging, which will enable them to generate personalised communication, in-store dashboard advertising, and product launches.

FMedia will also soon offer more services including the incorporation of Google Ads and Meta, expanding its offer of functionalities for companies.

Falabella expands the range of services and products on its FMedia platform

What: John Lewis has collaborated with Zyler to launch its ‘Try It On’ tool on the John Lewis Rental platform.

Why it is important: The additional function will encourage customers to experiment with more styles of clothing.

The ‘Try It On’ feature gives customers the opportunity to visualize the clothing items on themselves and will even get feedback regarding if the length and silhouette of the clothing item will complement their body shape or skin tone.

John Lewis links with Zyler for rental virtual try on tech 

What: Macy’s opens a new restaurant and reflects on the importance of the food and drink sector to the company

Why it is important: Food is an important part of Macy’s customer experience and has been a part of its business strategy for over 100 years.

Macy’s food and drink division dates to 1890 with the first tearoom in the Chicago department store to now having over 120 restaurants. The company’s ever-growing portfolio of restaurants includes a mix of proprietary concepts such as Seven on State, franchised and licensed concepts such as The Cheesecake Factory, as well as local concepts like the Liliha Bakery in Honolulu. There are plans to add new food locations in various Macy’s locations as it is shown to contribute value to the customer experience.

In addition to increasing customer time spent at the store, there is a mutualistic relationship for both the food operators and the department stores. There is increased store visibility, promotions, and offers that are exclusive to Macy’s, and the restaurants receive business support such as build-out cost forecasting and advertising support.

Why retail giant Macy’s prioritizes its restaurant program 

What: Frasers Group forecasted to be the top retailer in the UK by 2026

Why it is important: The top retailers of the UK will change by 2026 due to strategic decisions made by companies.

The jump from its current third place to the number one spot will be a result of its five-year compound annual growth rate (CAGR) of 9.2% from its acquisitions such as Missguided and I Saw it First. The expansion of its Flannels chain and its growing sports presence are accompanying the causes for the growth.

The top 5 are predicted as Frasers, Next, Marks & Spencer, JD Sports, and Primark.

Frasers Group to be the top UK fashion retailer within a few years

What: Ssense has included an AI tool in their online shopping experience which can assist clients with styling questions and get responses with links to products from its catalogue.

Why it is important: Fashion retailers are jumping on the trend of integrating AI into their shopping experience, and Ssense is going a step further by incorporating the technology of ChatGPT.

The online retailer, Ssense, has included an AI tool on their website to aid shoppers with their shopping and styling questions. Their version integrates directly into ChatGPT where subscribers of ChatGPT Plus can download a plug-in from Open AI’s store. By using a mix of Open AI’s technology and property AI models, it allows users to ask questions and get both recommendations and links to products from Ssense’s catalogue. As there is still room for improvement, the company hopes to advance with their chatbot as generative AI advances.

Ssense Launches an AI-Based Personal Styling Chatbot 

What:  Tesco appoints a financier as its new chair.

Why it is important:  Is the finance world the new hunting ground for retail strategic hiring?

Gerry Murphy, the current chair of luxury brand Burberry and food group Tate & Lyle, is set to become the next chair of Tesco, replacing John Allan.

Allan stepped down amidst allegations of misconduct towards women. Murphy will join Tesco in September and will be tasked with navigating the supermarket through claims of profiteering during a cost of living crisis.

He will step down from Tate & Lyle to ensure he has the capacity to fulfil his role at Tesco. Byron Grote, Tesco's interim chair, called Murphy "the unanimous choice of the board" and praised his strong boardroom leadership and understanding of retail and consumer-focused businesses.

Tesco appoints City veteran as new chair 

What:  A networking party, “Summer Night & Fashion Party”, hosted in the KaDeWe luxury department store along with German Vogue, and the Fashion Council Germany celebrated the talents of Berlin Fashion Week.

Why it is important: Berlin Fashion Week is dedicated to highlighting the growth in its fashion industry and is working along with the city of Berlin to showcase and connect industry talents in their passion for fashion. KaDeWe remains the meeting place for inspired individuals to come together and be inspired.

The collaborative evening of the “Summer Night & Fashion Party” during Berlin Fashion Week was hosted by KaDeWe in their luxury department store to bring together 550 guests from the fashion industry to network with one another. In part with the Fashion Council Germany and Vogue Germany, the event aimed to connect individuals, support the fashion industry, and give international visibility to BFW and its talents. The KaDeWe and Conde Nast joint event was highly successful in organizing this union of industry members as there were many esteemed guests in attendance.

 KaDeWe, FCG, and Vogue celebrate BFW networking party 

What: Allbirds has not only released the first net-zero shoe, but the toolkit to do the same.

Why it is important: Private labels leaders should take notice, as well as Sustainability ones who should not only update their suppliers policies but also be ready for a customer mindset’s shift.

Allbirds has unveiled the design of its zero-carbon shoe, "M0.0NSHOT", at the Global Fashion Summit in Copenhagen. The shoe, primarily made from carbon-negative regenerative wool and methane-capture bioplastic, achieves a carbon footprint of 0.0 kilograms CO2e without the use of carbon offsets.

Along with the shoe's reveal, Allbirds has also released an online toolkit, or "Recipe B0.0K", which provides detailed information about the shoe's creation process to help other businesses make their own sustainable products. The commercial launch of the shoe is planned for Spring 2024.

DTC brand Allbirds launched a zero-carbon sneaker 

What: The global eyewear group has completed the acquisition of its own subsidiary in Mexico.

Why it is important: Global brands and suppliers regain total control of their operations by squeezing local partners, putting department stores at the risk of losing leveraged negotiating power.

The Italian group has acquired the remaining 49% of its shares in its former joint venture in Mexico as part of its greater corporate strategy to enhance its presence in key markets.

Marcolin Mexico will continue to support its local stakeholders from its own subsidiary in Mexico City while further improving and quickening responses to clients’ needs.

Marcolin acquires Mexico operations

What: A pop-up store will open in Lotte Department Store during the visit of the Manchester City football club

Why it is important: Puma City, the pop-up store, is named after Puma which is the official partner of Man City.

The store will operate from Friday to Sunday at Lotte World Mall in Jamsil, southern Seoul.

Lotte Department Store to open a pop-up store in collaboration with Man City 

What: The largest market in the world (for now) is changing its nature.

Why it is important: Is it the advent of private labels for Chinese department stores just like in the rest of the world?

In 2023, China's retail market is expected to grow by over 9% CAGR by 2026, with domestic brands significantly contributing to this growth.

E-commerce brand Wudashu attributes this to the changing behaviour of Chinese consumers who seek personalised and trendy products. Retailers, in response, are developing domestic brands with suppliers to meet this demand, benefiting from reduced marketing costs and competitive products.

Despite the overcapacity issue, suppliers are now aligning with suitable retailers to ensure a healthier retail sector. Livestream shopping, a retail channel that originated in China, is also contributing to the growth, becoming a USD 512bn market.

What is behind the surge in China’s domestic retail brands? 

What: Harrods has announced the launch of its first private members’ club in Shanghai that is due to open by the end of the year.

Why it is important: The department store’s new venture is on par with the trend of retailers branching out into profitable luxury non-retail areas. The brand is expanding into mainland China due to significant market potential and the growing wealth of consumers.

Harrods plans open its very first private members club in Shanghai by the end of the year which will cater to the ultra-rich with membership prices starting at CNY 150,000. The new club, The Residence, is located on the second floor of the Cha House which also houses the Harrods Tea Room and Piano Bar.

The primary round of memberships will be very exclusive and be limited to 250 members to start. Members will be able to benefit from automatic access to Black Tier status with the Harrods Rewards Program, as well as access to Harrods Aviation, Harrods Estates, Harrods Interior Design, and private shopping services at the Knightsbridge shop.

Chinese customers account for about a fifth of the global luxury market, so many top brands, such as LVMH and Hermes, are shifting their resources to focus on mainland China. Harrods is confident in the growth of wealth in China and aims to cater to the big spenders who continue to shop despite economic insecurity and youth unemployment.

Harrods to open first private China club catering to ultra-rich

What: Macy’s reveals its new private brand, a collection of women’s apparel and accessories called “On 34th.”

Why it is important: Macy's aims to increase the percentage of private brands in its portfolio and has done extensive market research to release On 34th to appeal to its target market.

The new collection offers classic wardrobe staples designed for modern life. This paired with its wide size range, the store is revamping its private brands to be more customer-centric, modern, and inclusive. It is aiming to get its private brands back to above 20% of its volume.

Some of the On 34th collection styles are online already on the Macy’s website but the official launch happens on August 17th. Macy’s stores will sell the new collection then, and the On 34th shoes will launch in the spring of 2024.

Macy’s unveils its new private brand 

What: Members of the creditors’ committee came to a unanimous vote in front of the Düsseldorf district court regarding P&C’s restructuring plan.

Why it is important: Peek & Cloppenburg can continue with its restructuring course as it gains the support of the creditors.

The insolvency plan will be formally submitted to the court and will be voted on by creditors by the end of August.

The creditors’ meeting also unanimously confirmed the self-administration and the court appointed administrator.

The plan provides for extensive job security and a location guarantee for the Peek & Cloppenburg Group in Germany.

P&C: Creditors support restructuring plan

What: Liberty has partnered with Klarna to offer the buy-now-pay-later service to its online customers.

Why it is important: The new payment option will allow shoppers to pay for luxury items in interest-free instalments.

Klarna’s research shows that 42% of shoppers would prefer to use BNPL over a credit card (33%) to buy pricier items. This will broaden Klarna’s customer base as well as encourage customers to consider their consumption and shopping habits.

Other luxury retailers offering this option include Harrods, Farfetch, and Rimowa.

Liberty adds Klarna to its payment options 

What: While the number of luxury shops around the world has remained fairly stable, the shape and size of stores has changed dramatically.

Why it is important: Luxury stores have to be transformed into unique and meaningful places, linked to the brand’s roots to make a space that is memorable and becomes a destination for customers.

Luxury retail is concentrated in 25 major cities with Tokyo, Seoul, Paris, Hong Kong, and New York City being at the top of the list.

New stores such as Dior’s flagship on Avenue Montaigne are designed to be destinations and retain customers as long as possible. The store aims to attract everyone and caters to a visitor who will only buy a coffee to a customer who will treat themselves to a suite.

While these new points of sale require a hefty investment, the megastores are proving to be highly profitable with high margins and sales reaching hundreds of millions of euros. These stores have gone beyond retail space and become attractions.

Additionally, initiatives such as pop-ups, VIP lounges, fashion shows, travelling exhibitions and more, have enabled the luxury industry to increase its sales per square meter.

As the race for gigantism continues, it becomes more difficult for smaller labels to compete with the larger luxury companies. The luxury market is increasingly oligopolistic as Louis Vuitton, Dior, Chanel, and Hermés are in a league of their own.

Luxury: ever-larger shops for ever-stronger brands

What: AI is considered as critical for many businesses in order to remain competitive, but the journey can also be blurry.

Why it is important: Just like for any other tech in the past, many suppliers are harnessing it and developing their own propositions, sometimes without the right added value.

The emergence of generative artificial intelligence (AI) features, which respond to user prompts by generating images or text, has led to an oversaturation of AI co-pilot tools, causing confusion and potential governance risks for businesses. The proliferation of these AI co-pilots, or virtual assistants, is leading to difficulties in determining a single common interface for accomplishing tasks. In addition, privacy concerns arise when private data from a company interacts with the co-pilots and potentially enters public training models for generative AI tools.

Gartner noted that IT sellers are rushing to develop generative AI features for fear of falling behind, which might lead to privacy and security issues. They estimated that one-fifth of independent software vendors have moved into the generative AI space since the launch of ChatGPT around seven months ago.

Many businesses, however, are beginning to critically assess the new generative AI tools, differentiating between those genuinely useful and those merely capitalizing on the trend. Meanwhile, tech executives anticipate the market will eventually consolidate, leading to clearer winners in certain AI capabilities and simplifying the process for companies.

Companies are drowning into too much AI