What: Shopify has invested in wholesale platform Faire in a global deal.

Why it is important: The partnership aims to make it easier for Shopify merchants to find wholesale buyers and for retailers to source products from Faire's network of brands.

Faire, valued at USD 12.59 billion, will become the recommended wholesale marketplace for Shopify merchants. Faire focuses on independent businesses and offers a solution for brands looking to switch to a wholesale model to reduce costs.

The specific details of the deal, including its value and Shopify's stake, have not been disclosed.

Shopify invests in wholesale platform Faire 

What: Ingka Investments, the owner of Ikea stores, plans to expand mattress recycling throughout Europe.

Why it is important: Expanding mattress recycling programs across Europe is important to promote widespread recycling and reduce the reliance on incineration as a means of waste management.

The company aims to expand its mattress recycling program across Europe, including Scandinavia, France, and Belgium. However, the company's managing director, Peter van der Poel, highlighted that incineration is still incentivized over recycling in many European markets, as it is cheaper, which could hinder investment in recycling efforts. Ikea piloted a "car boot sale" concept as part of its sustainability push, and if successful, it will be rolled out in Ikea car parks across the country in 2024.

Ikea owner eyes mattress recycling expansion 

What: Reliance Retail Ventures is in advanced negotiations with global investors to raise approximately USD 2.5 billion.

Why it is important: The investment will boost India's appeal for foreign investors amidst uncertainties in China.

This funding is expected to be finalized by the end of September and is part of Reliance Retail's overall target of raising USD 3.5 billion. USD 1 billion of the target from Qatar Investment Authority (QIA) and was announced last month.

The company has been strengthening its omnichannel capabilities and leveraging its vast network of physical stores and digital platforms. With Reliance Retail's strong market presence and the influx of investment, India's retail sector is expected to witness further innovation, job creation, and technology-driven advancements.

Reliance Retail has also been actively expanding its consumer business by acquiring smaller grocery and non-food brands. This strategic expansion has contributed to the company's impressive financial performance. In the financial year ending March 2023, Reliance Retail reported a consolidated net profit of INR 91.81 billion (USD1.11 billion).

Indian Billionaire Ambani’s Reliance Retail in Talks to Raise USD 2.5 Billion

What: Sports salons Barry’s turn 25.

Why it is important: While they have a massive international footprint, they inked a partnership with Frasers a few years ago, showing a potential new direction for department stores eager to add wellness and health to their service offer to customers.

Barry’s, a boutique fitness brand, celebrates its 25th anniversary. Founded by Barry Jay in 1998, it now has 84 studios in 14 countries. Joey Gonzalez, who began his journey with Barry’s by attending a class in 2004, became CEO in 2015 after holding various roles within the company. Under Gonzalez's leadership, Barry’s underwent significant changes including a rebrand, global expansion, and navigating the challenges of a pandemic. The company is set to surpass its pre-pandemic revenue of $100 million this year. Emphasizing a welcoming fitness environment, Barry’s integrates lifestyle elements like apparel, recovery stations, and Fuel Bar - a health café. As part of its ongoing growth, Barry’s is considering global expansion, focusing on data-informed strategies and tailoring studio designs to local aesthetics.

Sports salons Barry’s turn 25

What: John Lewis Chairwoman asks the government for a call to action for the current state of town centres and retail crime.

Why it is important: Around 6,000 stores have closed down and there is hesitancy around opening a physical retail front due to high crime rates and antisocial behaviour.

Sharon White, chairwoman of John Lewis, suggests the establishment of a Royal Commission to assess the health of towns and explore strategies for revitalization, which would be the first such commission since the Victorian era. White also highlights additional challenges faced by high streets, including unfair business rates, outdated planning rules, and the impact of traffic changes and clean air zones.

John Lewis boss calls for government reform

What: Target Corporation is closing nine stores due to rising concerns over theft and safety.

Why it is important: Retailers are increasingly concerned about safety and are prioritizing efforts to address theft and crime.

The affected stores are located in Portland, the San Francisco area, Seattle, and New York City. The company stated that theft and organized retail crime have put the safety of their employees and customers at risk, as well as impacting their business performance.

Target operates nearly 2,000 stores and has been actively addressing retail crime issues. The retailer had previously warned that shrinkage, or missing inventory, would lead to a USD 500 million reduction in earnings this year. They have seen a 120% increase in thefts involving violence or threats of violence. Despite efforts to prevent theft, Target has concluded that operating these stores safely and successfully is no longer feasible. The company will continue to invest in store security and technology to combat theft and seeks collaborative solutions with the community, government, and industry.

Target is closing nine stores due to rise in organised theft 

What: Reliance opens a Hamleys store in Milan.

Why it is important: After the Chinese expansion, Indian retail also goes outside its borders.

Reliance Retail's Hamleys has inaugurated its inaugural store in Milan, Italy, spanning 13,300 sq ft on Corso Vittorio Emanuele II, through a collaboration with Giochi Preziosi, who holds exclusive rights to run Hamleys in Italy. The Milan store, showcasing brands like Lego and Barbie, introduces a revamped design and will be followed by a flagship outlet in Rome. Additionally, Build-A-Bear Workshop will debut in Milan within Hamleys, offering customized soft toys and enhancing the shopping experience for international visitors.

Reliance Retail opens a store for one of its brands in Italy

What: Travel retail operator Heinemann is back at Dusseldorf airport after 10 years.

Why it is important: They aim to use the airport as a base to test their most innovative stores and promote local and regional brands.

After a 10-year hiatus, travel retailer Gebr. Heinemann has reopened its stores at Düsseldorf Airport, coinciding with the resurgence of the MICE (meetings, incentives, conventions, and exhibitions) business in the city. The collaboration aims to capitalize on increasing international arrivals due to the growth of trade events. The relaunched stores emphasize regional specialities and sustainability and cater to younger demographics by introducing trending and social media-favored brands.

Heinemann is back at Dusseldorf Airport after 10 years

What: Walmart has announced the opening of its first Pet Services Center as part of its expansion into pet care.

Why it is important: It allows them to expand their offerings and cater to the needs of pet owners, providing convenient access to a range of pet care services.

The centre, located in Dallas, Georgia,  will offer a range of services, including vaccines, wellness exams, minor medical services, grooming, and a self-service dog wash. Veterinary and grooming services will be provided by PetIQ. This move responds to growing pet ownership in the U.S., with the pet industry expected to hit $277 billion in spending by 2030. This pilot centre is co-located with Walmart's first Health centre, centralizing health care needs for families and pets. Walmart also plans to introduce an online Pet Pharmacy experience on its website and mobile app. The new pet centre will have a separate entrance and is being piloted before potential expansion to other stores. The company aims to extend the Pet Services model to more locations based on the pilot's insights.

Walmart leans into pet care with first Pet Services Center 

What: Malls are performing better than expected, pushing Unibail to be less radical than initially planned.

Why it is important: Retail may has morphed, but for now, some staples such as shopping malls resist when they are able to reinvent themselves.

Europe's largest mall operator, Unibail-Rodamco-Westfield, has reconsidered its decision to fully exit the U.S. market by 2023. Despite the pandemic's impact, the company's high-end American malls, including the Westfield Valley Fair in California, have shown strong performance. While the company has divested from some lower-quality properties, it continues to invest in its flagship malls, indicating confidence in the upscale mall business. This move is also strategic, as the company aims to manage its debt while optimizing its asset value.

Mall owner Unibail Rodamco is no longer planning to sell US assets

What: Unibail-Rodamco-Westfield (URW) sold Westfield Valencia Town Center to Centenniel Real Estate.

Why it is important: The sale of the shopping center helps URW reach its deleveraging target as the USD 199 million sale price overpasses the USD 195 million debt accompanying the mall.

URW will retain a 50% share in the property due to their belief its long-term prospects. The mall was only discounted by less than 3% compared to the previous independent appraisal which reaffirmed its strong market value. Westfield Valencia Town Center is rated A- and maintains an occupancy rate of 87%.

The group's plans to optimise its portfolio by carrying out several other transactions this year including Westfield Brandon, Westfield Mission Valley East and West, and Westfield North County.

URW sells Westfield Valencia Town Center for USD 199 million

What: John Lewis has launched a turnaround plan in 2020 and has gone through financial woes since then. Profitability is not yet in sight.

Why it is important: Reviewing the structure of the “Partnership” (very specific and unique to John Lewis) has always proved to be difficult, and might have to be done again soon.

John Lewis, a prominent UK department store chain and owner of supermarket Waitrose, anticipates it will need an additional two years to finalize its turnaround strategy, pushing its completion from 2025/26 to 2027/28. This comes as the company reported another loss for the first half of the year, attributing the delay to high inflation and increased staff expenses. Despite the delay, the group has shown signs of recovery: it posted a 14% reduced loss compared to the same period last year and experienced a 2% increase in total group sales. The company remains unsure about providing its well-known staff bonus this year and is focusing its investments on customer service, new products, and overall pay. The company's net debt slightly increased, but it expects to enhance its debt ratio by year's end.

John Lewis has 2-years delay on the path to profitability

What: Bloomingdale's celebrates an icon that has become synonymous with New York.

Why it is important: Department stores always strive to be as recognizable as the city where they are located.

The iconic Bloomingdale's Brown Bag, originally designed by Massimo Vignelli in 1971 for the store's linen department, is celebrating its 50th anniversary. Synonymous with New York City style, it's a bag that many have come to recognize and cherish. To commemorate the half-century mark, Bloomingdale's is hosting a series of events and collaborations. The department store will have a special pop-up featuring Brown Bag-themed merchandise from brands like Ralph Lauren, Stoney Clover Lane, and Clinique. An event at Bloomingdale’s 59th Street flagship will include activations on each floor, artistic contributions from Matthew Langille and FIT students, and themed refreshments at various pop-ups.

On October 7, Bloomingdale’s beauty department will join the celebrations with various activations, including raffles and special offers. While the main festivities are in New York, Bloomingdale's locations across the nation will also mark the anniversary on September 9.

Bloomingdales celebrates 50 years old of its Big Brown Bag

What: John Lewis is stalled in their sale of a part of its Oxford Street flagship store.

Why it is important: The hold-ups can impact the company's financial plans and potential real estate investments.

The company had chosen a joint venture between developer Hines and Korea's National Pension Services as the preferred bidder to convert the upper floors into offices. However, declining property values and rising interest rates have caused setbacks in finalizing the deal.

John Lewis GBP 150m Oxford Street redevelopment delayed

What: Instacart is going public and needs to maximize its attractivity.

Why it is important: Grocers are part of the equation, but the partnership with Instacart comes at their expense, which raises questions about the IPO.

Instacart, targeting a valuation under $10 billion in its upcoming IPO, relies on supermarket partnerships for success. The company claims most grocers lack the infrastructure for effective e-commerce, citing U.S. grocers' relatively low investment in tech. Instacart's strengths lie in its technological prowess and the advertising revenue generated from its extensive user data. However, while supermarkets gain online sales through Instacart, they face fees and potential lost advertising revenues from brands that would typically pay for in-store placements. As online sales grow, brands might shift ad budgets from physical stores to online platforms. If supermarkets find the costs outweigh the benefits, they could leave Instacart or renegotiate for better terms. Larger retailers, like Kroger, have developed their own retail media arms and see digital advertising, particularly retail media advertising, as a significant revenue stream. As Instacart's presence grows, ensuring a balanced relationship with supermarkets becomes critical.

Instacart needs grocers’ support to make its IPO successful

What: Ikea tried to go away from the “maze” store design as the new units are smaller than the historical big box stores.

Why it is important: customers asked to have the full experience, including the serendipity of finding the unexpected, and want the maze back.

IKEA's traditional maze-like store layout, which guides shoppers through various sections, has proven to be popular and effective. Despite attempts to create more open and flexible layouts to cater to casual shoppers or officegoers, customers have expressed a preference for the guided shopping experience. They appreciate the path through the store, as it reminds them of products they may have forgotten they needed. This layout has been a key element of IKEA's success, creating a sense of discovery and encouraging shoppers to explore the entire store. IKEA continues to experiment with different store formats to adapt to changing consumer preferences, including smaller stores and dedicated plan-and-order locations.

Ikea has to recomplexify their stores by popular demand

What: Nordstrom has expanded its men's shoe floor at its NYC store, doubling its size to offer customers a broader selection of styles.

Why it is important: It offers customers a wider selection of styles, including new brands, and enhances their shopping experience.

The expansion includes 15 new-to-Nordstrom NYC brands, including AllSaints, Asics, Axel Arigato, Craft, Ecco, Frye, Karhu, Mephisto, Merrell 1trl, New Balance, Polo Ralph Lauren, Puma, Saucony, and Wolf & Shepherd. The store also added expanded assortments from brands such as Magnanni, Santoni, To Boot New York, and Cole Haan. The newly redesigned Nordstrom x Nike shop and a permanent On shop-in-shop have also been introduced on the expanded shoe floor.

The floor now offers a total of 80 brands, covering categories such as designer, dresswear, modern sportswear, contemporary, trend, young customer, and active. Customers can also visit the Jason Markk area, which is the brand's first East Coast retail store and shoe care service location, offering sneaker cleaning and a selection of local, seasonal beers on tap.

Nordstrom doubles the size of men’s shoe floor at NYC store

What: The article highlights the broken system of fashion manufacturing and the challenges it poses.

Why it is important: It is important to address the broken system of fashion manufacturing and overcome its challenges in order to create a more sustainable and efficient industry that benefits all stakeholders involved.

One example is Ahmed Zaidi's family's apparel factory in Pakistan, which experienced order cancellations from brands, resulting in difficulties paying suppliers. The breakdown between brands and their selling channels further exacerbates the problem. Mainstream stores carry excessive amounts of inventory, leading to messy displays and poor consumer experiences. This overproduction and inventory problem are driven by pressure from fashion investors and result in discounting cycles that compromise brand values.

French luxury conglomerates and small independent retailers have found success by adopting different approaches. The broken wholesale fashion system affects brands, manufacturers, and retailers alike. Manufacturers face canceled orders and payment difficulties, while mainstream stores struggle with excess inventory. Investment capital can influence brand values and sustainability goals. Nonetheless, some brands are finding success by controlling the entire production and distribution chain or through extreme cooperation. Small independent retailers thrive by carefully curating their inventory and maintaining strong partnerships with the brands they sell.

Many smaller labels view wholesale as a marketing tool to introduce their brand to new shoppers, generate cash flow, and support production. During the pandemic, some designers, such as Hoffman, shifted their sales strategy from wholesale to direct-to-consumer. However, they still aim to bring on more wholesale accounts to achieve a balanced sales percentage.

In the wholesale system, smaller independent brands face challenges and costs such as using costly order technology and marketing support fees. To improve the wholesale cycle's efficiency and profitability, researchers are exploring the use of artificial intelligence and fabric/materials arbitrage.

The US wholesale model is hurting everyone

What: Selfridges has launched Yellow Pages, a new program that encompasses the best of the luxury retailer's services, from shopping and design to culture.

Why it is important: This advertising move creates an immersive experience for customers, showcases brands, promotes its services, and set the store apart from its competition.

The program includes a 72-page zine that showcases various cultural happenings in London and Manchester, such as exhibitions, productions, and anniversaries. As part of this initiative, Selfridges will also introduce audio windows for the first time, providing an interactive experience for customers. Additionally, Selfridges will take over trams in Manchester, showcasing the retailer's distinctive shade. The upcoming activities at Selfridges, highlighted in the zine, will feature renowned brands like Versace, Jil Sander, Harris Reed, and Martine Rose, and will include pop-ups, special collections, and limited edition products;

The store aims to position itself at the forefront of new season trends and cultural discussions, helping customers discover the most exciting offerings.

Selfridges launches the Yellow Pages

What: Nelly Rodi has written a book called "Quelques saisons d'avance", chronicling the emergence of trend forecasting in the 1960s and 1970s.

Why it is important: "Quelques saisons d'avance" by Nelly Rodi preserves the memory of trend forecasting and educated future generations about its significant role.

The book explores the relevance and future evolution of trend forecasting in the fashion industry. Rodi shares her personal journey from Algeria to France, her internship at Prisunic, and her connections with fashion figures like André Courrèges and Jean-Paul Gaultier.

She aims to preserve the memory of trend forecasting agencies and their role in predicting fashion trends. She believes that the immediacy of influencers and fast fashion can disconnect from the true purpose of trend forecasting, which is to inform brands about societal trends. While acknowledging the possibilities AI offers, Rodi emphasizes the need for the human element in creating emotional connections.

The 286-page book, published by Bouquins, is priced at EUR 21 and will be released with a signing at the Première Classe trade show in Paris’ Tuleries Garden on Friday September 29th.

Nelly Rodi pens history of trend forecasting 

What: Marks & Spencer has announced its addition of Adidas and Sweaty Betty to its third-party brand lineup, aiming to attract new customers.

Why it is important: This move reflects M&S's strategy to evolve and connect with its customers in a changing retail landscape.

The retailer will launch over 150 products from these sportswear brands on its Sports Edit platform in the near future. Columbia, Regatta, and Sorel will also be joining the platform in the coming weeks to drive online growth. M&S director of third-party brands, Nishi Mahajan, stated that expanding the sporty collections aligns with the goal of becoming more relevant to customers' lifestyles. M&S previously acquired a stake in sportswear platform The Sports Edit and launched it on its website. Alongside Adidas and Sweaty Betty, M&S has also welcomed other third-party brands such as Swoon and Estée Lauder Fragrance to diversify its offerings.

M&S bolsters sports offer with Adidas and Sweaty Betty 

What: Following the uproar leading to a unusual strike, Fortress has decided to keep all stores, including the ailing ones.

Why it is important: The flagship, which is profitable, will still be turned into a consumer electronics store.

Fortress Investment Group, after acquiring Sogo & Seibu, intends to keep all 10 department stores in Japan operational and retain the current workforce. Seven of these stores are in the Tokyo metropolitan area, with the remaining three in Akita, Fukui, and Hiroshima. Despite the challenges faced by the regional stores, Fortress is committed to supporting them. The U.S. investment firm has increased its renovation budget from JPY 20 billion to JPY 60 billion. This includes plans to introduce an outlet of the prominent electronics retailer, Yodobashi Holdings, in Tokyo's Seibu Ikebukuro store. Yodobashi, in collaboration with Fortress, contemplates further expansion in other locations with a proposed investment of nearly JPY 300 billion. The Yodobashi outlet in the Seibu Ikebukuro store is projected to utilize half the total retail space. Additionally, any job redundancies caused by the renovation will be accommodated by other companies affiliated with Fortress or Seven & I Holdings, the former owner of Sogo & Seibu.

Fortress to keep all Sogo Seibu stores for now

What: Zalando launches an online magazine to generate content and relationship with its community.

Why it is important: This move a reminiscence of a basic marketing tactics from the early 00s when e-commerce websites seeked to be a mix between a magazine and a transactional platform.

Zalando is introducing "Stories," a digital magazine feature on its platform to enhance the shopping experience with content like trend insights, influencer collaborations, and brand narratives. Primarily short videos, these Stories can be accessed via a dedicated hub and across Zalando’s platforms. for them, this move is a step towards prioritizing inspiration in shopping. They're collaborating with Highsnobiety, acquired by Zalando last year, for content creation and strategy. The content, which includes segments like 'Cover Story' and 'Style Bible', will be updated weekly.

Zalando launches an online magazine

What: Frasers Group partnered with Thrive Learning to create and launch an online learning platform for its employees.

Why it is important: The online learning platform will boost employee development in Frasers’ 35,000 employees which will in turn foster growth within the company.

This partnership aims to provide a variety of learning opportunities, including compliance training, onboarding for new employees, product training, internal communication, and social learning. The platform is designed to offer personalized recommendations to employees and facilitate peer-to-peer learning. Additionally, Frasers Group anticipates that the platform will enable the identification of new skills and maximize overall growth within the company.

Frasers to revolutionise employee learning using AI