What: IKEA has launched two sustainability initiatives in the United States, aimed at reducing its climate footprint and becoming a climate positive business by 2030.

Why it is important: These initiatives reflect a broader trend in the retail industry towards sustainability and reducing carbon footprints.

The first initiative involves a solar installation project in seven stores and fulfilment centres, which will include solar car parks, rooftop panels, and battery energy storage systems. The second initiative focuses on renewable heating and cooling, with plans to replace and optimize HVAC systems in five store locations.

These sustainability projects align with IKEA's goal of being powered by 100% renewable energy and eliminating fossil fuels from its operations by 80% by 2030. The solar project is a continuation of IKEA's existing solar power project in Paramus, New Jersey. Once operational, the seven solar units are expected to collectively produce 13,600 megawatt hours of energy annually, offsetting 5,883 tons of carbon emissions.

IKEA's sustainability efforts also include transitioning to a circular business model and using more renewable sources for its furniture production.

Ikea expands on sustainability initiatives 

What: Marks & Spencer has expanded its beauty offerings by introducing Estée Lauder Fragrance, with over 30 fragrances from the brand set to be launched in the coming month

Why it is important: The addition of beauty offerings will help increase sales, attract new customers, and diversify their product range.

The company is planning to add over 30 fragrances from Estée Lauder, including the Beautiful, Bronze Goddess and Pleasures collections for women and Aramis for men. There are currently 47 labels in total which account for over 40% sales in beauty.

M&S continues to expand third-party beauty brands

What: The Saks Luxury Pulse quarterly survey revealed that 58% of respondents plan to spend an equal amount of more on luxury goods in the August through October period.

Why it is important: The luxury customer confidence in spending has increased from 53% to 58% when Saks last conducted the survey which is an indicator of growth in future sales for the luxury good market.

Individuals with household incomes of USD 200,000 or more are showing a more positive outlook on luxury spending. Saks has stated that its core customers typically have an average household income of around USD 200,000.

Despite concerns about the overall economy, 68% of luxury consumers remain optimistic about their personal financial situation. This sentiment extends to the overall economy as well, with 45% expressing optimism, which marks a 5 percentage point improvement compared to the previous survey.

Recent price increases in the luxury sector have made consumers more price-conscious and focused on obtaining value for their money. While they are still willing to pay for special items, they are seeking value in their purchases.

Saks, in particular, has noticed a positive inflection point in purchase intent across the luxury consumer continuum. This suggests that core luxury consumers are beginning to recover and increase their willingness to make purchases. Saks is focused on building relationships with the full range of luxury shoppers.

Saks survey sees luxury shoppers bouncing back 

What: Barneys is coming back with a branded line sold at Forever 21.

Why it is important: Time will tell if a department store IP can stand the test of commercial profitability without being a department store.

Barneys New York, once an iconic luxury department store, has transitioned into a brand for licensed goods after filing for bankruptcy in 2019 and its subsequent sale in 2020. On September 7, fast-fashion retailer Forever 21 will launch a Barneys New York collection featuring a 32-piece lineup that includes suiting blazers, trousers, denim jackets, and outerwear. This collection, reflecting the timeless Barneys style, will be available online and in approximately 200 Forever 21 stores during New York Fashion Week. Both Barneys New York and Forever 21 are owned by Authentic Brands Group. While Barneys had a unique place in the hearts of fashion aficionados, its commercial allure wasn't enough to sustain its physical stores. Despite this, the Barneys New York label still holds significant appeal for many customers.

Barneys New York launches collab with Forever 21

What: Consumption remained strong in August, despite slowdowns in June and July.

Why it is important: As long as the job market remains stable, American customers might keep on spending like there is a tomorrow.

August saw a 0.6% rise in U.S. retail sales, despite downward revisions for June and July, with gasoline prices significantly contributing. This growth indicates a potentially strong GDP for the current quarter, with predictions at a 3.5% annual increase. Despite concerns about high borrowing and reduced savings, consumer spending remains strong, largely fueled by a robust job market. The employment rate, especially among those with less education, has risen, leading to increased spending. While job security concerns exist, they're currently lower than in 2019. If the job market weakens, consumer spending might decline, but for now, confidence in the American consumer remains high.

US consumers remain optimistic after all

What: In spite of a timid situation in tourism, leading to ailing duty free businesses, both Shinsegae and Hyundai posted encouraging results.

Why it is important: Just like in Europe, Chinese tourists might be the cherry on the cake once they return to a country very much in need of them.

Shares of major South Korean retailers Shinsegae Co. and Hyundai Department Store Co. are on the rise, with increasing optimism about their sales growth due to the return of Chinese group tours to Korea. Despite experiencing a drop in the second quarter earnings, both companies showed potential for recovery, with an improvement in operating margins. Notably, foreigner sales accounted for 4% of department store sales in Q2, a rise from 2% in Q1. Shinsegae recorded a decline in duty-free sales, but increased its operating profit by 40% after making adjustments in merchant commission fees. Hyundai's duty-free business also saw reduced operating losses in Q2. Experts predict that the resumption of Chinese tours will boost the profitability of duty-free shops. Additionally, Hyundai G.F. Holdings Co. plans to integrate its core affiliates, including Hyundai Department Store, streamlining its governance structure.

Hyundai and Shinsegae shares are up following encouraging results

What: A new trend on social media show that algorithms are not the only way for retailers to address customers.

Why it is important: GenZers value personal advice, efficiency and ability to go out of their comfort zone, in addition to being able to tap other people’s communities. This might be a way for department stores to create new relationships with them.

Despite economic uncertainty, Gen Z is embracing personal styling, particularly when it comes to secondhand fashion. The #stylebundle trend, where personal stylists curate secondhand clothing selections for customers, is gaining popularity on platforms like TikTok, creating a sense of community and uniqueness. Gen Z is drawn to the personalization and unique finds offered by stylists, as well as the opportunity to experiment with new styles. This trend is driven by the desire for thrifted fashion combined with personalized expertise. Brands and retailers looking to tap into this trend should focus on value, customization, altruism, and credibility to attract Gen Z customers.

Do you know #stylebundles?

What: KaDeWe appoints Alexandra Bagehorn as General Manager.

Why it is important: KaDeWe is reorganising their management.

Bagehorn will start the role on December 1st. She is returning to the KaDeWe Group after working at the Alsterhaus in Hamburg and Montblanc. Additionally, Timo Weber, the previous head of KaDeWe in Berlin, has been appointed as the Retail Director of the KaDeWe Group, effective from January 1st. His focus will be on strategically managing three department stores (KaDeWe, Alsterhaus and Oberpollinger) and the development of the two new stores that are planned to open in spring 2025 , Lamarr in Vienna and Carsch-Haus in Düsseldorf.

KaDeWe Group brings Bagehorn back on board as General Manager

What: Fitch Ratings has placed Falabella SA on a negative watch due to its deteriorating operating trends and limited visibility regarding debt reduction.

Why it is important: The negative rating highlights the company's operational and financial challenges, urging stakeholders to closely monitor its performance and debt reduction efforts.

The company's weak performance is attributed to a combination of internal and external factors, including high inflation, elevated operating costs, and sluggish consumer demand. While Fitch Ratings predicts that Falabella will have enough liquidity to manage its net leverage until 2025, it also anticipates improved operating results within the next 18 to 24 months as the operating environment stabilizes in Chile.

Fitch Ratings places Falabella one step below Cencosud, as Cencosud's retail formats are predominantly focused on the food and supermarket segments. Successful implementation of effective strategies and adaptability to changing market conditions will be crucial for Falabella to overcome its challenges, regain stability, and enhance its competitiveness in the retail industry.

Falabella receives a negative note from Fitch Ratings

What: Saks CEO, Marc Metrick discusses Saks’ Q2 perfomance and future expectations.

Why it is important: The CEO provides a comprehensive insight to Saks’ Q2 performance and how the company was able to increase net profit even though there was a decline in sales.

In the second quarter of 2023, Saks experienced an 11% decline in top-line revenue. However, the company achieved higher profitability by focusing on improving margin and inventory management, as well as implementing staff cutbacks in their store and website.

Saks.com saw a two-year stacked growth of 24% and a 114 % increase compared to Q2 2019; the gross merchandising value (GMV) for saks.com still fell by 11% compared to Q2 2022. Similarly, GMV for Saks Fifth Avenue stores dropped by 11% during the same period. The top-selling categories at the stores were men's and women's contemporary sportswear, and the top-performing markets were New York and Florida.

During the quarter, Saks successfully executed a strategy of separating its store fleet and e-commerce business. Positive performance was observed in comparable sales compared to the second half of the previous year. Spending among core luxury consumers is starting to return, with 64% of those earning USD 200,000 or more planning to spend the same or more on luxury in the next three months. This indicates an increase in luxury spending among higher-income shoppers. The company holds positive expectations for the upcoming holiday season.

Saks CEO on Q2: Profits up despite double-digit top-line drop

What: Shein and Klarna have partnered up again  for an immersive tour around the UK called “In Pink We Trust”.

Why it is important: The tour and partnership show how vital experiences are in physical shopping since the comeback of in-person retail post-pandemic.

The aim of the tour is to provide consumers with an immersive experience of the Shein brand, showcasing new collections of knitwear, denim, partywear, and accessories in a walk-in wardrobe setting. The bus will also feature Shein's home decor and appliances ranges. Visitors will have the opportunity to enjoy pampering services and win prizes, and there will be fashion sessions and music provided by DJs at each location. The first 100 visitors at each location will receive a goodie bag.

Destinations on the tour will include London E1 on September 20th, Birmingham Bullring on September 22nd, and Manchester Square on September 23rd.

Shein and Klarna link up for UK immersive tour 

What: In an unlikely move, Shopify is now collaborating with Amazon to “simplify merchants’ lives".

Why it is important: With the loyalty program patiently built by Amazon for the past 15 years, they now havz a strategic asset able to facilitate even the most unlikely alliances such as Shopify, a rival.

Amazon and Shopify are partnering to offer the Buy with Prime feature to Shopify merchants, allowing them to provide Prime members with free delivery and easy returns through Amazon's fulfillment network. This integration simplifies operations for merchants using both platforms, as they can sync orders, promotions, catalog listings, and taxes within the Shopify system. Initially available on an invite-only basis, the service will be accessible to all U.S.-based Shopify sellers using Amazon's fulfillment network by the end of September. This collaboration represents a change in the relationship between the two companies, as Shopify initially warned its merchants against adding Buy with Prime to their storefronts due to terms of service and security concerns.

Shopify teams up with Amazon and now offers the Buy with Prime option

What: Department stores are struggling in Korea.

Why it is important: The competition from online players is rising and makes the most of customers’ disaffection for non-essential goods.

In August, South Korea's retail sales increased by 3.3% year over year, driven by convenience stores, super super market (SSM) operators, and online cosmetics and food retailers. The Ministry of Trade, Industry, and Energy (MOTIE) found a 7.6% rise in convenience store sales due to their closeness, small purchase shopping, and more outdoor activities during the summer holidays. SSMs saw a 3.2% growth, mainly from fresh/prepared and processed foods, despite a dip in daily necessities. Online sales surged by 8.1%, with cosmetics and food sales growing by 14.1% and 13.0%, respectively. In contrast, brick and mortar hypermarkets experienced an 8.4% decline, with significant drops in home/living and food sales. Department store sales also fell by 4.9%, and there was a notable reduction in sales for fashion/clothing (2%) and sports (5.6%), reflecting a shift in consumer preferences away from non-essentials due to diminished consumer sentiment.

South Korean sales grew in August thanks to convenience stores and online

What: EBay is entering the fashion consignment market as it introduces a new service to compete with other apparel resellers.

Why it is important: This strategic move reinforces eBay's commitment to becoming a premier destination for fashion and luxury consignment.

While the initial focus is on designer handbags, eBay plans to expand the service to include other categories in the near future. In order to ensure the success of this offering, eBay has partnered with Linda Lightman, a well-established and experienced seller. The objective of this collaboration is to overcome logistical challenges and position eBay as a top choice for luxury and fashion consignment. By leveraging the expertise of Linda Lightman, eBay aims to establish a strong presence in the consignment market and attract both buyers and sellers in the fashion industry.

EBay launches consignment offering for luxury fashion sellers

What: Due to debt, Seven & i sells the Sogo & Seibu department store chain at a discounted price

Why it is important: The deal includes the Seibu Ikebukuro profitable flagship in Tokyo, which comes at a very good price

Seven & i Holdings has completed the sale of Sogo & Seibu department store operator to Fortress Investment Group. The enterprise value of Sogo & Seibu was estimated at JPY 220 billion, but after accounting for debt, the actual transfer price was JPY 85 million. Seven & i expects to book a non-consolidated extraordinary loss of JPY 145.7 billion related to the transfer of Sogo & Seibu shares and loss compensation. Fortress plans to partner with Yodobashi Holdings in its turnaround plans for the department store chain.

Seibu department stores are sold for USD 600,000

What: After 10 years of operations, Ikea closes its innovation center which reached its goals.

Why it is important: this relates to how to deal with innovation in large companies, and how to create a favourable environment that impacts the rest of the company.

Ikea is closing its innovation platform, Space 10, located in Copenhagen, after achieving its goals. Space 10 was established in 2014 as a collaboration between Ikea and Danish design collective ArtRebels. It operated independently and focused on how Ikea could contribute to a better future. The lab worked on various projects, including the development of the Ikea Place virtual reality app and exploring city store concepts. With its objectives met, Space 10 is closing on a high note.

Ikea closes its Copenhagen-based innovation center after 10 years

What: J.C Penney announces its self-funded USD 1 billion reinvestment.

Why it is important: The plan, to be fulfilled by 2025, aims to fuel long-term growth, increase customer loyalty, and enhance the customer experience through digital upgrades and in-store improvements.

J.C. Penney's more than 650 stores will undergo updates to enhance the store look and feel, technology, and associate tools. The company is also upgrading merchandising tools and supply chain operations.

The new customer value proposition, called "Make It Count," aims to remind customers that J.C. Penney stands with them. The brand proposition is anchored in four core aspects: making fashion accessible, genuinely rewarding, standing with communities, and a commitment to doing for others.

J.C. Penney launches USD 1 billion reinvestment plan

What: Falabella launches its Talent Bank program for 2023.

Why it is important: Its "Talent Bank" program highlights the company's commitment to nurturing and retaining talent.

The in-store development initiative is aimed at improving customer service and fostering internal mobility by imparting technical knowledge, company culture, and leadership principles. This year, participants can aim for roles like sales manager and store manager, with 53 individuals already enrolled. Since its inception in 2015, the program has promoted 345 employees. The training, aligned with Falabella's four core values, is conducted in collaboration with the University of Chile and consulting firm Lifebox.

Falabella Retail launches the 2023 edition of its Talent Bank program

What: Shein has opened a pop-up store in the Forum Schwanthaler Höhe in Munich for Oktoberfest.

Why it is important: The pop-up store will bring the brand even more visibility in Germany after its first temporary store in Berlin earlier this year.

The store will be open until October 1st and offers over 1,800 items of clothing and accessories for women, men and children including traditional Oktoberfest fashion such as dirndls and blouses. There will be exclusive discounts, surprise gifts and special student discounts to appeal to younger customers.

Additionally, after the pop-up shop, Shein plans to donate fall and winter clothing, shoes and accessories with a total value of EUR 90,021 euros to WeißerRabe GmbH.

Shein sets up Oktoberfest pop-up in Munich

What: Walmart expands their fashion retail and transforms the shopping experience.

Why it is important: Emphasizing its fashion business is crucial for Walmart to bolster its business model, as well as increase its market presence in higher-margin categories.

Walmart is making progress in its pursuit of becoming a fashion destination. Led by Denise Incandela, the executive vice president of Walmart U.S.' apparel division and private brands, the company is updating its assortment, enhancing the online shopping experience, and effectively communicating these changes to shoppers. With plans to expand its new store model to 300 locations after a successful test run with 30 converted stores, Walmart aims to leverage its large customer base of approximately 140 million people who visit its 4,000 stores or website each week.

Apparel is viewed as a crucial part of Walmart's overall strategy to strengthen its business model and succeed in higher-margin categories. The company recognizes the shifting expectations of customers, particularly younger consumers who prioritize value over shopping at higher-end stores.Walmart aims to position itself as a leader in the fashion industry by catering to these changing preferences and capitalizing on opportunities for growth.

Walmart: A fashion giant awakens 

What: Skims is celebrating its debut at the KaDeWe department store in Berlin.

Why it is important: This will be the brand’s first physical location in Germany, as it aims to open its own stores across Europe.

Germany is the fastest-growing market in the EU for Skims. The company plans to open its own in London, Milan, and Paris over the next 18 months and form valuable partnerships with luxury retailers like KaDeWe.

KaDeWe launches Skims debut into the German market

What: Macy's, Inc. has joined the US Cotton Trust Protocol to enhance its sustainability efforts in sourcing cotton.

Why it is important: Macy's participation in the Trust Protocol will enable them to better understand the supply chain of their private brand products. It reinforces their dedication to sustainable practices, advances their progress towards environmental goals, and fosters greater visibility and accountability in their cotton supply chain.

The company's commitment to sustainability is reflected in its social purpose platform, Mission Every One, which aims to create a more equitable and sustainable future. In 2022, Macy's released its private brand cotton policy, pledging to source 100% preferred materials by 2030. This commitment includes sourcing US Cotton and Protocol Cotton, which is grown and harvested by Trust Protocol growers. Macy's will use the Protocol Consumption Management Solution to ensure transparency and accountability in the cotton supply chain. Through this membership, Macy's will trace its supply chain and demonstrate progress towards its environmental targets.

Macy's Vice President of Sustainability, Keelin Evans, emphasized that their work is focused on caring for people and managing their environmental impact. They are already making significant progress, and they expect that over half of their cotton products within the private brand managed by Macy's sourcing team will be sustainably sourced by the end of 2023.

Macy’s joins US Cotton Trust Protocol to bolster sustainability 

What: After plummeting indicators for the third consecutive quarter, Falabella will sell assets to reduce its debt, which is already around USD 5bn dollars.

Why it is important: The project includes the sale of stand-alone stores, distribution centers and the former offices of the Sodimac chain located in Renca, for an estimated total of USD 400mn. Falabella considers other actions that cannot be disclosed yet.

Falabella will sell assets to reduce debt

What: Macy’s renegotiates deals with carrier services to reduce their delivery expense.

Why it is important: After peak season surcharges harmed the firm's holiday profits, the company made cutting delivery costs a primary focus.

Macy's CFO and COO, Adrian Mitchell, announced in an earnings call that the department store retailer successfully renegotiated carrier contracts, resulting in a decline in delivery costs in Q2 compared to the previous year. In Q2 2022, delivery expenses accounted for 4.5% of net sales, but in Q2 2023, they fell by 50 basis points. The specifics of the renegotiated deals were not disclosed.

Macy's uses UPS, the U.S. Postal Service, and DoorDash for same-day delivery.

Macy’s renegotiates carrier contracts for lower delivery costs