What: A Japanese airline explores new ways to save fuel and weight by proposing new services to customers.

Why it is important:  A world where purchasing will become just an option and not a need is appearing in between the lines with this initiative.

Japan Airlines (JAL) has launched a year-long experiment that offers visitors to Japan the chance to rent their clothes upon arrival.

The rental clothes, which are a mix of excess stock from retailers and second-hand items collected by a partner company, will be delivered to a visitor's hotel or Airbnb accommodation and collected at the end of the stay to be washed and recycled.

This trial scheme, known as "Any Wear, Anywhere", is designed to promote sustainable tourism by reducing luggage weight and, therefore, carbon dioxide emissions from flights. The scheme's launch coincides with a period of rapid growth in visitor numbers to Japan following the easing of pandemic-related travel restrictions.

JAL airlines offers tourists to rent their clothes at destination 

What: Concerns are growing that consumers could be pulling back on buy now, pay later as interest rates increase.

Why it is important: Instalment payment services have helped drive sales for years but retailers won’t be able to rely on BNPL as a major driver of sales in the near future in the current economic environment.

Data indicates that consumers are scaling down their use of buy now, pay later to smaller purchases and relying on it to manage their everyday expenses. Additionally, the number of luxury shoppers who use BNPL has also dropped so far in 2023 after years of increases.

Despite rising interest rates and inflation, BNPL is expected to continue to grow as more consumers and retailers adopt it.

Is fashion’s buy-now, pay-later boom over? 

What: Walmart is offering customers on certain government aid programs 50% off Walmart+ subscription

Why it is important: Walmart+ assisted membership will provide recipients with benefits and opportunities that were previously inaccessible to them.

Walmart+ Assist will be available to customers that are enrolled in programs such as SNAP, Medicaid, and the National School Lunch Program. The benefits of the program include free shipping, grocery delivery, gas discounts, and video streaming on Paramount.

The discounted membership is valid for one year at a price of USD 6.47 monthly or USD 49 annually with the option for annual renewal.

Walmart rolls out half-price Walmart+ memberships for people on government assistance 

What: Liberty Retail announces a drop in profits for the 2022/2023 fiscal year despite a rise in revenues.

Why it is important: The overlook of the financial performance of Liberty Retail and the company’s positive outlook on the poor profit margins give an insight into the current conditions of the company’s health.

The annual report, with a year-end in January, stated a 41.5% jump in revenue from GBP 82 million to GBP 116.17 million yet a 99% drop in operating profit from GBP 2.48 million to GBP 22,000. According to the company, this is an exceptional situation that is a balancing out of the GBP 11.5 million impairment that it endured in the previous year.  Liberty Retail was optimistic about the company’s overall performance as it had been successful during the Christmas period despite inflation rates and had made increased online sales contributions towards its EBITDA.

Liberty Retail sales rise but EBITDA lags pre-Covid profits

What: Lotte Duty Free, South Korea's largest duty-free operator, lost its spot in the airport in April.

Why it is important: While the loss of the airport spot is expected to have minimal impact on Lotte’s overall revenue, their withdrawal from Incheon airport after 22 years of operation is expected to have a major impact on the ranking of Korea's duty-free industry.

Shilla Duty Free and Shinsegae Duty Free have since launched larger-scale operations with a wider product range, with the latter planning to operate 29 stores across Terminals 1 and 2 by the end of next year. Hyundai Department Store Duty Free has also started operations, offering luxury brands including Tiffany, Celine, and Fendi.

Following its departure from Incheon Airport, Lotte Duty Free intends to concentrate on its downtown duty-free shops and online platform where they introduced a dedicated section for duty-free liquors.

Lotte Duty Free withdraws from Incheon airport

What: EU is attempting to tackle the fast fashion recycling topic, but ends up nowhere useful.

Why it is important: Whatever happens to fast fashion will one day or another apply to fashion as a whole. A recycling tax might be a reality soon.

The European Commission is proposing that the fashion industry should pay for processing discarded clothing to encourage the use of more recyclable materials and offer repair services. This move is in response to the significant environmental impact of the fashion industry, with nearly 80% of garment waste in the EU ending up in landfill or incinerators.

However, critics argue that the plan fails to address the majority of the industry's environmental damage, which arises from the production process rather than disposal. Examples include the large water footprint in jean production and harmful cotton monocultures in China and India.

Larger European fashion companies, like H&M, are already increasing the use of recycled materials, but technologies for such use are still developing and have their own environmental challenges.

EU recycling plans for fast fashion face thorny externalities

What: John Lewis Partnership’s sustainability plans have been validated by a scientific committee.

Why it is important: Such a rubber stamp allows at the same time to content activists and avoid being taxed of greenwashing, even though customers could wonder is 2050 is not a too distant date in the future.

The John Lewis Partnership (JLP) has become the first UK retailer to have its net-zero science-based targets approved by the Science Based Targets initiative (SBTi).

The retailer aims to achieve net-zero across its operations by 2035 and across its wider supply chain by 2050. JLP is also the first global retailer to have SBTi-approved targets related to greenhouse gas emissions from 'forests, land, and agriculture'.

The company's sustainability plans include product design for longevity, recyclability, and the use of sustainable materials, as well as transitioning its vehicles away from fossil fuels and procuring 100% renewable electricity. JLP also plans to provide customers with integrated energy efficiency insights for its online products.

John Lewis’ race to net zero is endorsed 

What: Resale is increasingly becoming a staple for lifestyle brands.

Why it is important:  For now, such programs are great for marketing and customer relations, but questions remain about their profitability and how to be economically sustainable.

Brooks Running has launched a recommerce program called ReStart, which refurbishes and resells used Brooks footwear in the U.S. To run this program, Brooks has partnered with Trove, a recommerce technology provider. The program offers used products across three quality levels: Like New, Great, and Good, with prices starting at 35% off the manufacturer’s suggested retail price.

The ReStart program is part of Brooks' sustainability strategy, aiming to extend the lifespan of used products. Trove, Brooks' resale partner, claims that its secondhand goods sales reduce greenhouse gas emissions by keeping items in use longer. The company processes more than a million items annually and works with various brands looking to resell used goods.

While the recommerce trend is growing, with ThredUp predicting the U.S. resale market will reach $70 billion by 2027, there are questions about its profitability and environmental benefits. Some online resale providers have struggled to maintain profitability, and experts question whether the shift to resale can counterbalance the fashion industry's environmental impact.

Lifestyle brand Brooks goes resale 

What: The secondhand market in Asia is growing as the younger generation shows an interest in pre-owned fashion.

Why it is important: The global secondhand market is set to grow to USD 248 billion by next year and USD 351 billion by 2037 with demand from the Asia-Pacific region fuelling the growth.

The Asian luxury retail market is fragmented due to differences in language, culture, and regulation in varied countries. Though, the homogenous societies across Asia prefer shopping for the same brands as they find comfort in conformity and emulate each other’s style.

Kream is a South Korean retailer of trendy sneaker styles with 5.3 million monthly active users that pulled USD 1.4 billion worth of gross merchandise volume last year. 50% of the GMV comes from sneakers, but the company hopes to broaden their market to appeal to women.

The customer-to-customer resale is a growing trend in each country, and Kream sets itself apart from other C2C platforms by offering a storage service. This allows sellers to store their inventories in Kream’s warehouse and facilitates a better experience for the buyer by speeding up the sale and authentication process.

The company cemented its reputation as a reliable platform after Kream halted sales of Essentials T-shirts when a buyer attempted to sell a counterfeit and noticed more questionable products on their site. Kream reimbursed clients who had bought fakes at double the cost of their original purchase.

There is clear potential growth for Asia’s resale market and as it moves online, platforms will adapt to streamline the process and provide a high service level.

How big can luxury resale get in Asia?

What:  Première Vision and Institut Francais de la Mode conducted a survey on 5,000 respondents in the French, British, Italian, and American markets regarding sustainable fashion.

Why it is important: The survey revealed that the second-hand market is becoming a preferred entry point for sustainable consumption and improved consumer information would lead to increased purchases of sustainable products.

The perception of the fashion industry’s environmental commitments has improved. 64.3% of French respondents believe that fashion upholds environmental criteria as rigorously as other industries while 67.8% of Germans, 74.7% of Italians, and 81.5% of Britons share the same sentiment.

Despite inflation, consumers are allocating a quarter of their budget to sustainable fashion and each nationality has shown an increase in spending on sustainable fashion despite fashion sales not having returned to pre-crisis levels.

The study found that there is still a gap between consumer behaviours across various sectors. While 44.9% of French respondents purchased eco-responsible clothing last year, 68% of women bought organic food, and 63% purchased organic cosmetics. In the United Kingdom and Italy, the corresponding percentages were 42% and 54.4% respectively.

Sustainable fashion is also becoming more fashionable, with 9 out of 10 respondents stating that sustainable products are now considered "fashionable"

Addressing consumer information gaps is crucial, in France, non-buyers of sustainable fashion cited lack of information as the primary reason; today, that number has decreased from 50.4% to 33%. In the US and Germany, the percentage of consumers who feel well-informed has doubled, reaching 36% in Germany and 57% in the States.

Consumer behaviour and purchasing patterns are shifting as customers prioritise material quality as they aim to buy less and invest in long-lasting garments. There is also an increasing desire to repair or have garments repaired.

The survey also highlights the sustained popularity of the secondhand market, with half of the women and one-third of the men who participated in the survey purchasing pre-owned garments within the past year. Price remains the primary motivation across all five countries however, the conscious desire for responsible consumption is increasing.

The rise of sustainable fashion: a shift in western consumer behavior

What: John Lewis is downsizing its headquarters and is extending same-day delivery service to more cities and enhancing other services.

Why it is important: The store is expanding the service following the success of the initial launch in London.

The service will now be available to customers in Manchester, Leeds, and Birmingham. Customers who order products online before 10 am can receive their purchase between 7 pm and 10 pm the same evening for the cost of GBP 9.95.

The store has also improved other services such as its click and collect as well as reinstating its deliveries of large items in Northern Ireland.

John Lewis's move is expected to take place next summer when the company will move from Victoria to Pimlico. The relocation is in response to thousands of employees choosing to work from home.

John Lewis extends same-day delivery service to more cities

What: AI tools are helping vendors on Amazon improve their product listings and optimise them.

Why it is important: AI is revolutionising the e-commerce industry and can help retailers drive sales and save time.

Artificial intelligence is being used by e-commerce management systems to help vendors on Amazon rank higher and improve their visibility to customers.

Jungle Scout and Viral Launch are two companies that have recently launched AI features to assist with product listing optimisation on Amazon.

Jungle Scout's AI feature generates product listings based on keywords and provides analytics on search terms and optimisation performance. Viral Launch plans to release its own AI-assisted selling feature later this year.

With AI's ability to translate copy into foreign languages, selling in international markets has become more accessible.

Using AI to make shoppers buy

What: A growing number of customers are feeling ashamed by their own consumption.

Why it is important:  After the flight shaming, the buy shaming?

A growing niche of consumers, known as "reductionists," are aiming to disconnect from the fast-paced fashion system and buy less.

This trend aligns with a broader shift towards less conspicuous consumption due to increasing concerns about the climate and cost-of-living crises.

However, the number of people actually changing their shopping habits remains small. The fashion industry's marketing tactics, which capitalize on deep-rooted emotions and turn shopping into a form of entertainment, make it challenging for consumers to resist buying new items.

Despite this, sustainable fashion advocates are finding ways to make buying less more accessible and appealing, such as promoting the financial savings and environmental benefits of a shopping detox.

The rise of the reductionists? 

What: The online clothing sales group soared on the London Stock Exchange on Thursday after a return to profitability in Q3, despite a decline in sales.

Why it is important: The action jumped 13% to 370.00 pence in early trading.

In a press release on Thursday, the British online distributor announced a "return to profitability with earnings before interest and tax (Ebit) up by more than 20 million pounds over one year".

The group thus notes that it has lost 800,000 “active” customers since the first half of the year, but has seen its profitability per order increase by 30% since the start of the year.

Asos wants to continue on this trajectory, continue to reduce its inventory for the rest of the financial year and says it is confident that it will generate cash to reduce its net debt.

Asos soars on the stock market after its Q3 despite a decline in sales 

What: After exiting Coupang, Shinsegae creates alliances to counter its influence.

Why it is important: Would that be an example for worldwide retailers in front of Shein?

South Korean retail giant Shinsegae Group has partnered with major retailers to counter the influence of e-commerce operator Coupang.

Gmarket, Shinsegae's online shopping subsidiary, is running a promotion with Auction, CJ Cheiljedang Corp., LG Household & Health Care Ltd., and Coca-Cola Korea. The promotion offers a 15% discount coupon for Shinsegae Universe to members of Gmarket and Auction.

Additionally, Shinsegae plans to launch a collaboration package event where customers can receive a free LG H&H product when purchasing a CJ Cheiljedang product, or vice versa.

This move is seen as a joint response by Shinsegae, CJ Cheiljedang, and LG H&H to curb Coupang's influence, following a pricing dispute that led CJ Cheiljedang and LG H&H to withdraw from the e-commerce retailer.

Shinsegae seeks alliances to counter e-commerce pure player Coupang 

What: The Suburbia department chain is adding a new store to its portfolio in the Tampiqueño territory.

Why it is important: El Puerto de Liverpool is successfully expanding the department store’s presence throughout Mexico as it continues to open stores in addition to the 15 opened in the last fiscal year.

The new store is estimated to have about 5,000 square meters of surface area and will open in Altama City Center, which is said to be the most important shopping center in the state.

Suburbia expands in Tampico

What: The multi-brand specialty store will open a 4,090-square-foot flagship in Iguatemi São Paulo.

Why it is important: The retailer will stock several international brands who are making their debut in the Brazilian market.

Brands such as Jacquemus, Coperni, The Attico, Courrèges, Paco Rabanne, Magda Butrym, Isabel Marant and JW Anderson will be available in Brazil for the first time at the two-level store at Iguatemi.

NK Store has four stores in Brazil, with this new store being the second location in São Paulo and the retailer's central flagship.

NK Store to open flagship in São Paulo, Brazil

What: A promotional piece giving some interesting insights on POS payment solutions and their added value.

Why it is important:  Portable POS solutions are now seen as a stapple by the most demanding customers who see it implemented by leading brands (Apple, Nike, Louis Vuitton). Department stores need to adapt.

Portable POS (Point of Sale) solutions are gaining popularity in retail due to their ability to enhance efficiency and customer experience:

1. **Enhanced Service Levels**: Equipping sales associates with portable POS devices allows for customer checkouts anywhere within the retail store, which is particularly beneficial for retailers attending events, pop-ups, or markets.
2. **Reduced Checkout Lines**: Portable POS systems reduce the length of checkout lines, which is essential as 73% of customers identify checkout experience as their primary pain point in in-store shopping. The reduced wait time minimizes the chances of customers abandoning their carts or rethinking their purchases.
3. **Flexible Shopping Experience**: Portable POS solutions cater to customer preferences for convenience in purchasing products and services. With 26% of consumers preferring in-store pickups for online orders and 11% favoring curbside pickups (17% for Gen Z), retailers are embracing these services as a part of an omnichannel strategy. Portable POS devices make in-store and curbside pickups more efficient and create additional touchpoints for personalized service.
4. **Increased Sales Opportunities**: For example, in apparel stores, allowing customers to check out in fitting rooms or checking inventory for different sizes on the spot can drive sales. Similarly, hardware store associates equipped with POS devices can suggest additional tools and parts to customers during the checkout process.
5. **Holiday Traffic Management**: During high-traffic seasons like holidays, portable POS systems can act as line-busting solutions, where temporary checkout stations can be set up to facilitate faster checkouts and improve the in-store experience.
6. **Back-of-House Functions**: Portable POS devices are not just customer-facing; they also help in performing back-of-house functions such as accessing sales reports.
7. **Integration with Existing Systems**: Square for Retail, available on Square Terminal, is an example of a portable POS solution that can expand checkout options and be integrated with existing retail systems. This single handheld device can handle payments, process returns and exchanges, print receipts, create orders, and view sales reports. It can also be used as a temporary checkout station during peak sales times.
8. **Adapting to the eCommerce Trend**: As eCommerce continues to grow, integrating a flexible and portable POS system is a way for brick-and-mortar retailers to stay competitive by enhancing speed, efficiency, and customer experience.

In summary, portable POS solutions are invaluable for modern retail environments as they offer flexibility, convenience, and enhanced customer service, which are crucial in the evolving retail industry.

The future of the retail POS is expanding beyond the counter 

What: Consumer confidence remains low in China as the country’s youth unemployment has reached record heights and anxiety over Covid-19 lingers.

Why it is important: Results from 618, a key shopping event and indicator of the overall health of China’s consumer market, saw its slowest growth rate in three years.

The results from the promotional event are indicative of the health of China’s consumer market, and spending on major e-commerce platforms only rose by 5.4%.

The wealthiest consumers are helping drive recovery in the luxury sector, however other consumers are remaining cautious.

National retail sales growth in China slowed to 12.7% in May, a clear deceleration from the 18.4% in April. This deceleration combined with weaker-than-expected data resulted in economists at key banks lowering their growth forecasts for the year.

China’s youth jobless rate has risen to 20.8% in May, which has set a new record and is four times the country’s overall unemployment rate.

Another contributing factor is continued anxiety over Covid-19 as another variant spreads, creating more uncertainty.

The confidence of the consumer isn’t fully there yet across the board, but in the luxury sector, high net worth individuals are making up for the purchases that aren’t being made by mass consumers. However, there is still an uneasiness for consumers and confidence still isn’t as high as it should be.

The pandemic not only impacted the economy but also consumer psychology. Chinese consumers aren’t as confident in the future and are more focused on the country’s negative demographics, especially younger Chinese consumers who are experiencing their first slowdown.

Customers are becoming more value-oriented, presenting opportunities for new and niche brands to gain traction as consumers show more interest in quality and features rather than big labels.

By sector, double-digit growth has been seen in categories like nutraceuticals and pet. Health supplements are seeing strength as the self-care trend increases and fragrances are also growing as they are viewed as an affordable luxury.

Why consumer sentiment remains subdued in China

What: Frasers Group is set to lay off up to 200 employees as it looks to streamline its business following its string of acquisitions in recent years.

Why it is important: The retailer is reviewing its team structures to identify efficiencies and streamline processes as it has gone through significant change over the last year with its acquisition spree.

Frasers to lay off up to 200 workers

What: IKEA purchases Made4net in order to boost online capabilities.

Why it is important: This is only the third acquisition made by the group in 6 years, in spite of its formidable financial capabilities (and needs).

IKEA, through its parent company Ingka Group, is acquiring US supply-chain software provider Made4net to enhance its e-commerce operations. The move aims to make IKEA's growing online business faster and more precise. IKEA's chief digital officer, Wim Blaauw, emphasised the need for "state-of-the-art" technology to improve the customer experience for digital shoppers as online orders continue to increase. The acquisition of Made4net will allow IKEA staff to locate and dispatch products more quickly and accurately. Made4net, founded in 2005, will continue to operate as a stand-alone company.

This purchase is IKEA's third 100% acquisition, following its acquisition of TaskRabbit in 2017 and Geomagical Labs in 2020, both also US companies. IKEA is planning significant expansion in the US, with an investment of $2.2 billion to open 17 new stores over the next three years. It has also committed to spending more than $3 billion globally to upgrade its existing stores and invest in technology to enhance its order processing capabilities.

The decision to buy Made4net rather than just license its software was made because order fulfilment is a central aspect of IKEA's operations, and the company wanted to own this crucial stage in the selling process. The new software is expected to start rolling out in IKEA stores in the coming year, but it will likely take several years to fully implement globally.

IKEA makes software acquisitions to speed up e-commerce 

What: In recent years, AI-driven inventory tracking has become increasingly sophisticated and popular, offering businesses the ability to form more accurate forecasts based on variables such as historical and current sales, price fluctuations, order quantity, seasonality, promotions, product launches, and even market outliers like natural disasters and pandemics. In addition to AI, technologies like RFID (radio frequency identification) are being used to provide real-time location tracking of inventory items.

Why it is important: These technologies have the potential to make inventory management much more efficient, reducing waste and helping businesses to grow in a more sustainable way. However, as discussed during the IADS Supply Chain Meeting, there is no consensus among IADS members.

Companies such as Fuse Inventory and Sparkbox.AI offer AI-driven inventory management solutions that help companies make more informed decisions about how much inventory they need and where to sell it. Fuse has seen great success with consumer packaged goods brands, particularly in the beauty and cosmetics industry. Sparkbox.AI, on the other hand, is targeting the fashion industry, aiming to overcome the challenges associated with managing inventory in this sector due to the quickly changing nature of fashion trends and the complexities of different sizes, colours and styles.

American Eagle Outfitters, for example, has partnered with startup Radar to install RFID sensors and tags on apparel in 500 of its stores, enabling them to know how much of a certain item is in stock, and exactly where it is.

How AI and RFID are helping retailers right-size inventory

What: After more than two decades operating San Francisco Centre, Westfield is handing over the mall’s keys to its lender.

Why it is important:  A spokesperson for shopping center operator Unibail-Rodamco-Westfield announced it is handing over the keys to its lender, after 20 years of operating in the San Francisco Centre, the group has been investing significantly over that time in the vitality of the property.

Annual sales at the mall plummeted from $455 million in 2019 to $298 million in 2022, per the email. In that time, sales at Westfield’s Valley Fair mall in nearby San Jose rose 66% and the company’s overall U.S. flagship sales rose 23%.

Also in that time, foot traffic declined 43% to 5.6 million visits from 9.7 million, while the U.S. portfolio saw a 98% recovery. Occupancy also fell some 55% — including the recent closures of Nordstrom and Banana Republic — while the portfolio averages about 93%, the spokesperson said.

Westfield is handing over the keys to San Francisco Centre mall 

What: Third party sellers are given new tools to display their products on Amazon.

Why it is important: Marketplaces offerings are becoming increasingly sophisticated to attract the best providers possible.

Amazon is collaborating with Hexa to allow sellers to create 3D and augmented reality (AR) models of their products, enhancing the online shopping experience.

Hexa's technology also enables sellers to create high-definition marketing materials. Amazon has been experimenting with AR for several years, launching tools that allow customers to virtually visualize furniture in their homes and try on shoes and eyewear.

The move aligns with a growing trend among brands and retailers to integrate AR technology into their operations, responding to consumer demand for immersive shopping experiences.

Amazon gives sellers access to Hexa’s AR, 3D tech tools