What: Shinsegae International reported a first-quarter net profit of 26.8 billion won ($21 million), up 13.3 percent from a year earlier.

Why it is important: The company said in a regulatory filing that it posted 33.1 billion won in operating profit for the quarter, compared with 21.3 billion won a year ago. Revenue rose 3 percent to 352.2 billion won.

Shinsegae International Q1 results

What: Pride + Joy take center stage as Macy’s kicks off National Pride Month and honors the contributions of the LGBTQ community.

Why is it important: In support of the company’s mission to build a brighter future with bold representation, Macy’s will launch its round-up and donation campaign in stores and online at macys.com to benefit its longtime partner The Trevor Project.

Macy’s will also recognize Pride with exclusive merchandise available at select stores, on macys.com and its app, bring joy to local community Pride parades in select markets nationwide, highlight LGBTQ-owned brands and host special events at select stores.

Macy’s honors Pride month

What: Harrods is restricting Russian customers spending capacity.

Why it is important: According to The Telegraph, the famous Knightsbridge store has contacted Russian customers warning that it will no longer sell them “luxury goods” worth more than £300.

The move comes after Harrods has gone through its customer database, singling out those with a Russian phone number or who have said they live in the country.

The store sent an email to one wealthy Russian saying: “As you may be aware, the UK authorities have introduced further regulations as part of their ongoing sanctions against Russia which specifically target the sale of luxury goods. The regulations seek to prohibit the supply of many categories of luxury goods over certain values (generally £300) to individuals who are either currently or ordinarily in Russia.” The letter includes a link to the new regulations and encouraged the customer to “review them”.

Harrods sanctions high-spending Russian customers

What: In partnership with Skinney Medspa, Saks will offer botox, filler and Aquagold at its New York flagship.

Why is it important: Saks Fifth Avenue brings medical-grade services to its Manhattan flagship, with the program expected to roll out to Bal Harbour in Miami, and Houston.

Prices will start at USD300 per area for Botox, and filler starts at USD450 per half-syringe, although new clients are being offered USD50 off their first Botox treatments, and a limited-time launch offer knocks USD100 off the bill.

A report from the Aesthetic Society noted that non-surgical procedures using neurotoxins such as Botox numbered over 3.4 million last year in women, and over 155,000 in men. 41% of those procedures were in clients aged 36 to 50.

Saks joins a growing list of retailers driving trips with beauty services. Last year, Nordstrom introduced injectables to its Beauty Haven offerings in New York, in partnership with Dr. Dennis Gross, as well as HydraFacial facials and Cowshed body services.

Saks Fifth Avenue brings injectables in-store

What: The John Lewis Partnership has announced the appointment of Lisa Cherry as its executive director for people.

Why it is important: Cherry will be tasked with developing and delivering the people strategy for the Partnership’s partners, with a proposition that rewards and develops their position.

Currently serving as group chief people officer, Cherry has also previously worked in senior roles within Sainsbury’s, WHSmith, and Wyevale Garden Centres. Cherry’s early career was spent in customer facing operational roles before joining the Sainsbury’s Graduate Scheme.

She will be succeeding Nikki Humphery, who will be leaving the company to rejoin Virgin as the group’s chief people officer.

John Lewis appoints new executive director for people

What: The online retailer struggles to build off the dramatic gains it made early in the pandemic. Revenue will be USD $116 billion to USD $121 billion in the period ending in June, Amazon said in a statement.

Why it is important: That’s the slowest pace of growth since 2001, and marks the first time Amazon has ever recorded back-to-back quarters of less than 10% revenue growth.

Amazon has been grappling with rising energy and labor costs and changing shopping habits as people return to pre-pandemic activities. Despite those pressures, Wall Street analysts have been nearly unanimous in their optimism about Amazon’s prospects, citing the company’s massive investments in package handling and delivery capacity and continued growth in its highly profitable cloud-computing and advertising businesses.

The company also reported a net loss of USD $3.8 billion, or USD $7.56 a share, compared with profit of USD $8.1 billion, or USD $15.79 a share, in the period a year ago.

Amazon projects slower growth

What: After such success of its pop-up concept store, Gate Zero, Highsnobiety has signed a joint venture deal with travel retail giant Gebr Heinemann with the goal of opening permanent stores at airports.

Why is it important: The store, currently being tested via a pop-up in the Zurich airport, carries products from over 15 luxury fashion brands not usually seen in duty-free shops, which are typically a mix of big brand-heavy beauty, handbags, and fragrances.

The business will be largely concessions-based with a mix of wholesale for smaller labels.

The rethink on travel retail comes as the channel struggles to return to pre-Covid levels with big spenders like Chinese tourists and business travelers still limited. To thrive in the coming decade, brands and retailers need to change not only how they sell but what they sell.

Highsnobiety and Heinemann’s goal is to scale the Gate Zero business internationally, starting with a first retail permanent space in Copenhagen’s Kastrup International Airport on 13 May.

Highsnobiety’s strengths lie in curation and merchandising, apparent in Zurich’s store retail success, noting that bestsellers include sneaker collaborations such as Comme des Garçons and Converse, Acne Studios scarves and beanies, and Byredo and Aesop beauty products.

Highsnobiety has also produced souvenirs like hoodies, T-shirts, caps and tote bags designed specifically for the Zurich airport.

Gate Zero bringing trendy brands to airport malls

What: Kohl’s is reinvesting in its four-wall footprint and trying to modernize it.

Why is it important: Kohl’s is accelerating the opening of smaller store formats that have successfully been piloted; introducing what it calls “zones” for diverse, female-owned and emerging brands; testing self-serve return drop-offs; testing self-checkout, and reflowing key active and casual brands such as Calvin Klein, Draper James RSVP and Under Armour, in proximity to the in-store Sephora shops for better exposure.

They are also continuing to roll out self-serve stations for picking up online orders and already offer the ability to drive up and pick up packages and make Amazon returns.

Kohl’s said its new zones for diverse and female-owned companies will provide an element of “discovery” to its stores. It will also offer some differentiation from the preponderance of major national brands and private brands.

Kohl’s self-serve buy online, pick up in-store service will by the end of the year be available in all stores. Self-serve returns are being tested in over 100 stores, but there are more planned through the next 18 months. The self-return experience is unique to Kohl’s, offering a simple in-store drop-off process.

Kohl’s doubles down on store experience

What: Century 21 is making a New York City comeback, to the very same flagship location on Cortlandt Street across from the World Trade Center in lower Manhattan

Why is it important: The reopening of what was one of the city’s most popular and productive retail destinations will happen sometime in spring 2023. Century 21 went bankrupt and liquidated its flagship and all its other stores in 2020.

The revived flagship will be a streamlined version of the original, and will be running with the assistance of Legends, a company that oversees retail and hospitality operations at landmark establishments, including in New York the MLB flagship on Sixth Avenue; Yankee Stadium, and One World Observatory. It has also been behind the operations of such events as the 2012 and 2016 Olympics.

The revived flagship will have about 100,000 square feet over four floors, three less than the old flagship, which occupied about 200,000 square feet over seven levels. It will be focused on men’s, women’s, and kids’ apparel, outerwear, and accessories; handbags; footwear; sunglasses, and fragrances.

Century 21 is returning to downtown NYC

What: Harrods, in partnership with Qatar Duty-Free has announced the launch of The Harrods Tea Rooms Doha in Msheireb Downtown, the largest open-air square in the Mena region.

Why is it important: The Harrods Tea Rooms Doha, builds on the success of The Harrods Tea Room at Hamad International Airport. A Qatari-owned iconic brand is proud to bring the ultimate Afternoon Tea experience to the citizens, residents, and visitors of Qatar.

Guests will discover an authentic Knightsbridge experience at one of Doha’s top tourist destinations and historical landmark.

The Harrods Tea Rooms Doha

What: Lotte is falling victim of strong geopolitical forces.

Why it is important: China is a demanding market both in terms of the size of needed investments, but also in dealing with political demands.

South Korea’s largest retailer is finalizing its Chinese exit by closing down its HQ in the country in the second half of the year.

Even though the group is looking at many opportunities in South East Asia (such as Vietnam or Australia, where a duty-free store was recently opened), it started to gradually close down its 130 stores in China due to geopolitical tensions and customer boycott movements.

Lotte is finalizing its China exit 

What: Lotte opens its first location in Australia after not having opened any international store in 2 years.

Why it is important: Now that airports are crammed with operators, Lotte seems to export the very Asian concept of city centre duty free stores. In Europe, only one location (Venice) has such a feature. Could that be a new threat to department stores in iconic locations?

South Korean travel retailer Lotte Duty Free has opened its first store in Sydney, on a total surface of 3,200 square metres and 3 levels, at the heart of the retail precinct. Lotte has not opened a new store outside of South Korea since 2020 with its Singapore Changi Airport location.

Lotte plans to become largest Australia duty-free store operator with a turnover target of AUD $790mn (the total Australian duty free market was valued at AUD $800mn pre-Covid).

Instead of having opened in the airport itself, where Heinemann has the main retail concession, the city centre duty free store has been thought to be a destination per se, therefore with an inviting concept and with the target to be seen as a regular store by local customers too. To sustain that approach, Lotte is introducing brands that are new to the Australian market.

Lotte resumes global growth with first steps in Australia 

What: Luxury fashion brands are amping up touch and texture in the pop-ups for their latest handbags.

Why is it important: Consumers need to be enticed back to physical retail and luxury fashion brands are doing just that.

Jacquemus’s previous pop-ups in Milan and Paris, one in white, the other in pink, both went viral on social media. Jacquemus has also occupied Selfridges Mews, located directly behind the Oxford Street store, positioning there its 24-hour vending machine that dispenses colourways of its top-selling Chiquiot and Bambino bags. At the Old Selfridges Hotel: Le Vestiaire is the title of an immersive experience that transports customers through a surrealist interpretation of a swimming pool and rooms with 3D sensory experiences.

Balenciaga has also taken the hyperphysical route. Last week, the brand opened pop-ups for the Le Cagole it-handbag in both London and Bangkok. The stores feature a joyous surfeit of shaggy pink faux fur that covers floor, walls, chairs and shelves.

Coach’s larger-than-life installation in central London this April, which was inspired by the puffy pillowy leather of its latest Pillow Tabby bag. And Mulberry is currently hosting a pop-up in Seoul to promote its new bag Softie. The space mimics the bag’s sensorial qualities, curved quilting that looks plush and squishy, with spongy furniture and decor that invites visitors to touch.

At a time when many consumers haven’t fully returned to real-life shopping, hyperphysical retail serves as a draw for younger consumers. Some 56% of global Gen Z shoppers head to physical stores for a fun experience, according to a 2018 survey by IBM and the National Retail Federation.

While e-commerce is accelerating to offer multi-layered experiences for customers and brands, bricks-and-mortar stores are becoming physical bastions of extraordinary, sensorial moments. Some luxury marketers see an opportunity to add ASMR triggers to physical experiences.

Sales don’t necessarily drive these sensorial pop-ups. The idea is to break the frontiers in the world of luxury so that all may feel welcome and have a great experience no matter what they do inside.

While pop-ups generate short-term traction, bigger long-term opportunities may be out there, such as turning retail stores into spaces with benefits. Dior’s new flagship in Paris where visitors can eat, sleep, wear and work out, is to position retail not as just shops but as venues.

Luxury fashion brands go hyperphysical

What: Lindex owner Stockmann Group had a positive first quarter with clearly improved results across both divisions.

Why is it important: The company’s group revenue reached EUR196.1 million in the period to the end of March, up 27.1% at comparable currency rates, and the gross margin increased to 57.8% from 56.3%.

Operating profit swung to earnings of EUR9.8 million from a loss of EUR27.6 million a year ago, an improvement compared to the loss of EUR21.1 million in the previous year.

Lindex generated its strongest first-quarter sales and operating profit ever, due to increased sales in all channels and business areas. Sales in physical stores increased by 47.5% year-on-year, while digital sales, including both online and third-party sales, saw 8.2% growth.

And the Stockmann division achieved outstanding results, improving its adjusted operating result by EUR4.8 million to a loss of EUR7.3 million. The company stated that Q1 is usually negative for both divisions due to seasonal variation.

The division’s revenue grew by 9.2%. Sales in its stores increased because of higher visitor volumes and changed the balance between the sales channels. The stores generated 87.8% of its sales compared to 78.8% a year ago and the online store 12.2% compared to 21.2% of sales in Q1 last year.

Stockmann’s improving results, Lindex’s best-ever Q1 sales

What: The Dutch retailer is cutting down on products with the goal to sell less but more qualitative and sustainable products.

Why it is important: This is also a perfect opportunity to maximize synergies with the owner of the group, Jumbo, who bought Hema in 2020.

Dutch retailer Hema is going through the second corporate reorganization in three years, following the appointment of a new CEO, Saska Egas Reparaz, a year ago.

The new plan involves cutting down 100 jobs at the headquarter in Amsterdam, with 40 people made redundant and the rest moved to another department or position. This follows the exit of the UK and Spanish markets, and also the desire to remove management layers and simplify the organization.

In addition, the product range will be reduced, with 200 products reviewed. Hema is exiting entirely the food and drink market by closing the category.

However, less is more: Hema plans to sell less products but of higher quality, invest in its shop experience and its operations sustainability.

Hema cuts down on jobs and product offer 

What: Shein's Adam Whinston spoke of the company's sustainability plan covering supply chain, carbon emissions and droves of customer data.

Why is it important: Leaning heavily into Shein’s data, head of sustainability, Adam Whinston, aimed to lay to rest some misconceptions about the company. Speaking to Shein’s small batch production (only 50 to 100 pieces) and real-time feedback loop from customers, Whinston argued the model is a “transformative” approach that “reduces our overall production and creates less waste.”

Shein styles have a 98% sell-through rate. Referencing customer data including a 15,000-person survey, only 1% of Shein customers are only wearing their Shein pieces once. Along with a 7% return rate, the company also found evidence of its customer engaging in circular habits despite the alleged quality indifference of fast fashion goods.

Whinston addressed the mission to expand Shein’s “EvoluShein” capsule line, which is a sustainably-billed line using recycled polyester, into the company’s broader sustainability aims. One goal is to convert its entire viscose base to CanopyStyle sourcing standards.

Along with improved auditing standards, Shein is “exploring on-shoring,” and already counts on a new Indiana warehouse to reach the land-locked U.S. consumer.

Shein’s head of sustainability sets company record straight

What: Macy’s expands its relationship with Reebok which includes the creation of an exclusive product.

Why is it important: Starting in the spring of 2023, Macy’s will deepen its relationship with Reebok through a newly inked partnership covering sportswear and activewear for men, women, and children.

The deal will include the development of an exclusive product for the retailer that will be sourced from the Reebok Design Group, the brand’s global design and development arm for apparel and footwear.

Macy’s and Reebok are creating a closer bond

What: Chanel’s 2021 revenues rose 23% over pre-pandemic levels to USD15 billion. The brand now plans to open private stores for top clients as rapid growth risks overcrowding its stores.

Why is it important: Chanel’s sales grew far faster than the wider luxury market, and roughly one-third slower than rival leather goods powerhouse Hermès. Growth was driven by a “balanced” mix of price increases and higher volumes.

As sales continue to surge, the company remains committed to maintaining a tight store network, it presently has only 250 fashion boutiques. The company plans to boost customer service by hiring more than 3,500 new employees, including many sales associates.

Chanel also plans to open separate, private boutiques dedicated to serving top-spending clients, starting with locations in key Asian cities by early 2023.

Chanel to open dedicated boutiques for top-spending clients

What: According to a survey conducted by ThredUp, the global secondhand goods market is expected to grow by 24% in 2022.

Why it is important: Re-commerce companies, including The RealReal, Poshmark and ThredUp, are expected to comprise 18% of the clothing industry by 2031.

According to a new ThredUp survey of 3,500 U.S. adult consumers and 50 fashion retailers conducted by GlobalData, it is estimated that the U.S. secondhand market will more than double by 2026, reaching $82 billion.

Sixty-two percent of Gen Z and millennial consumers said they look for items secondhand before buying new. And almost half of Gen Z and millennial consumers (46%) consider the potential resale value of an item before purchasing it, per the report.

Secondhand goods are also seen as a way people can stretch their dollar further. Fifty-eight percent of shoppers say that resale has helped them in some way during a time of inflation.

Secondhand US market to reach $82B by 2026: ThredUp

What: Target announced a series of leadership shifts by elevating its chief supply chain and logistics officer to the leadership team.

Why it is important: The retailer claims that the updates being made to the C-Suite reflect the size and scale of the USD 100 billion business while positioning the company for continued momentum into the future.

The retailer admitted that it will be much more difficult to generate growth in the coming years, but the focus is now on guest experience where customer friction and frustrations need to be minimized and delight needs to be amplified.

Target focuses on customer experience, supply chain in latest leadership shuffle

What: In a pop-up format, Nordstrom Local will occupy an 850-square-foot site in Southampton, from Memorial Day weekend to Labor Day weekend.

Why is it important: The pop-up will provide pickups of online orders made on nordstrom.com and nordstromrack.com, returns, alterations, fashion advice from a stylist and gift wrap, and take-in used clothing and shoes for donations to Housing Works, and empty beauty packaging for recycling.

The ‘Closer to You’ strategy leverages the physical assets of Nordstrom’s full-line department stores, Nordstrom Rack, and Nordstrom Local to increase services, conveniences, merchandise choices, and speed deliveries. For example, shoppers can return items bought online or at Nordstrom department stores to a Rack or Nordstrom Local location, which may be closer to them. Nordstrom sees the strategy as strengthening customer engagement and the company’s customer-centric culture.

Nordstrom Local pops up in the Hamptons

What: Amazon's new 30,000-square-foot store is powered with technology and experiments with algorithms and apps to make shopping easier.

Why it is important: The first Amazon Style store, which opened at the Americana at Brand shopping center outside of Los Angeles, makes perusing for clothes and accessories more like an online experience but with the ability to touch, feel and try on the product.

The store displays racks of men’s and women’s clothing and shelves of shoes, jewelry and beauty products, but there is not more than one sample of an item on the rack or shelf.

From the time a customer enters the store to the time they exit, they can shop with the Amazon app, which helps personalize their buying experience and makes shopping easier by programming in their size and fashion preferences as well as their credit card number for easy checkout.

When a shopper sees something interesting, they take their smartphone app to read the QR code on the tag. Up pops a list of sizes and colors stored in the back, which can be sent to their personalized dressing room or to the cashier. They can keep shopping until they want to try on their selections, which have been placed in a fitting room whose number pops up on their screen when they indicate they are ready. They can take their app to unlock the fitting room, and they’re ready to try on clothes. If not happy with your size or color selection, customers can tap a fitting room screen and a store employee will deliver more sizes and colors to a locked closet attached to the room. Once done shopping, the shopper can take the items to the check-out area, scan the QR code and pay with the credit card filed on their app or with another credit card, cash or a check.

If they are not into spending much time in the store, they can also shop online at Amazon.com, have their box shipped to the store and then try on those items. If they don’t like what they bought, a store employee will take care of returns. For those who don’t want to download the app, they can shop the old-fashioned way with the help of a store employee.

Merchandise on the store floor is also displayed differently. There is a section where outfits have been selected by various influencers to give them an idea of what is trendy. There is also a section for premium brands, including Vince, Theory, Equipment and Rebecca Taylor as well as a section for popular brands including Calvin Klein, Levi’s and Lacoste. Amazon’s own brands are also for sale, but currently don’t make up the majority of items on the floor.

With that in mind, there is a section called “Sales & Deals.” A consumer can scan the QR code and find what is on sale in the store, with personalized items listed too.

Amazon Style is open 

What: Shein releases a new collection which ticks all the boxes of respectability: sustainable, responsible and socially committed.

Why it is important: Shein has been massively criticized for its opacity and environmental impact. This new collection shows that they are addressing these criticisms seriously, even though the size of the collection (1,500 at the end of September) is quite small compared to the usual business at Shein (6,000 new products per day).

Shein has announced the launch of evoluShein, a purpose-driven collection available worldwide online at the end of April. This line includes inclusive sizing, responsibly sourced materials and supports women’s empowerment.

The line is also connected to Vital Voices, an international non-profit organization investing in women leaders addressing gender-based violence, climate crisis and economic inequalities.

The first capsule includes recycled polyester used from plastic waste, which uses less water and energy than virgin polyester and Shein aims to use evoluShein as a laboratory to test new sustainable ideas and processes before rolling them over for the regular Shein products.

Shein envisions a total collection of 1,500 SKUs for evoluShein within September 2022. For memory, Shein releases 6,000 new products per week.

Shein unveils a purpose-led range 

What: J.C Penney has announced that John Aylward will take on the chief marketing officer position on June 6.

Why it is important: Aylward is being brought in to help further the company’s omnichannel strategy and “lead the marketing strategy, creative, visual merchandising and store design, and customer engagement teams,” according to their press release.

The department store last month launched a marketing campaign with the theme “Shopping is back!” The retailer is attempting yet another reset after high turnover in the C-suite, a bankruptcy and new ownership.

 J.C. Penney’s new marketing chief