What: CFO Adrian V. Mitchell discusses Macy's advancements, opportunities and challenges in a wide-ranging presentation at the JP Morgan Chase Annual Retail Roundup.

Why it is important: The major challenge that Macy’s is facing is understanding where demand is going to come from.

Despite the unpredictable retail climate, the CFO outlined several growth opportunities:

• Developing new categories through marketplace formats
• Engaging and retaining newer customers through personalized efforts and loyalty programs
• Expanding off-mall formats such as Bloomie’s, Market by Macy’s, and Backstage
• Location-level pricing so stores can maintain their own degree and depth of promotional activity
• Macy’s media network
• Increase monetized real estate (turn parking lots into restaurants or office space)

Mitchell sees 2022 as the year of events now that weddings and other gatherings can be scheduled as well as travel, which bodes well for several merchandise categories.

How Macy’s Inc. Is navigating the unpredictable retail climate

What: Farfetch has made many investments and acquisitions on its quest to dominate luxury fashion, and now it’s doing the same in beauty.

Why is it important: Following its acquisition of Violet Grey and the minority stake it took in Neiman Marcus Group the platform will launch beauty on Wednesday with an assortment of over 100 prestige brands.

Off White, which is owned by Farfetch, will launch four fragrances with the retailer, while Browns Fashion, the London-based luxury retailer, is also launching a limited beauty assortment online and in its three brick-and-mortar doors.

Farfetch is looking to differentiate itself with a gender-neutral assortment in an approach it is calling “Beauty Beyond Boundaries.” They want to be conscious of the fact that they have a diverse audience of pre-existing clients, and we expect to have a huge influx of new customers.

While Violet Grey and Browns will lean into small, curated assortments, Farfetch will fulfill orders with inventory from the two retailers, as well as its own buy. Digital activations will range from Roblox to The Sims 4, wherein content creators will create their own beauty avatars. Farfetch’s website will also include virtual try-on for makeup, starting with lipstick and later extending to complexion products.

In addition a campaign called “Your Choice. Your Beauty. Your Farfetch.” It is inaugurating the Global Beauty Collective, a committee that will aim to “educate, inspire and build a sense of community.”

Many of the brands that are on Violet Grey will be on Farfetch, sometimes with a fuller assortment.

Farfetch Goes Big on Beauty

What: This offer expands Prime shopping benefits to provide merchants the opportunity to grow their online platforms.

Why it is important: The Buy With Prime expansion will offer millions of US-based Prime members to shop directly from merchants’ online stores with the same kind of advantages they get when shopping directly from Amazon, such as free returns on eligible orders, fast and free delivery, and easy checkout.

In the beginning, participation will only be available by invitation for merchants using Fulfillment by Amazon (FBA) and will progressively be rolled out through 2022 as more are invited to take part, including those not selling on Amazon or using FBA.

Amazon has unveiled its new Buy With Prime offer for third-party websites

What: Walmart’s collaboration on a new AR lens aims to help mobile users find recipes using ingredients they have at home or can order from Walmart.

Why it is important: In the hopes of growing e-commerce sales through social media apps, Walmart has introduced shoppable augmented reality content on Snapchat through the “Snap Scan & Shop” lens.

The Snapchat lens lets users scan food items in a refrigerator or pantry with a smartphone camera to generate a list of 10 recipes that include those items. Allrecipes, a cooking site, provides the recommendations and the ability to buy additional ingredients from Walmart.

Walmart sees this collaboration as an opportunity to tap into young shoppers and identify opportunities to meet customers on social media platforms with an emphasis in convenience.

Walmart preps mealtime inspiration with shoppable Snapchat lens

What: While brands go virtual, Facebook’s Meta which ignited the metaverse craze is breaking ground with brick-and-mortar.

Why is it important: Meta revealed plans to open its first retail location at its Burlingame, Calif., campus. The 1,550-square-foot store will feature demo areas where shoppers can check out the hardware. People can make video calls with store employees using Portal, play Beat Saber or other titles on the Quest 2 virtual reality headset, and try on Ray-Ban’s connected camera glasses, available in three styles.

The company joins the ranks of its Big Tech comrades with physical outposts, including Apple, Google, Samsung and Microsoft, though the latter drastically cut its retail efforts during the pandemic. For Meta the move makes sense for esoteric technology like virtual reality and smart glasses, for which there’s no substitute for firsthand experience.

WWD - Facebook’s Meta to Open Its First Retail Store

Fashion Network - Facebook-owner Meta to open first physical store in metaverse bet

What: Showfields is bringing its distinctive retail format to the Williamsburg section of Brooklyn.

Why is it important: The 11,500-square-foot store will open in June at 187 Kent Avenue, at the base of a new apartment development called The Kent House.

The Brooklyn store, unlike the other Showfields locations, will be called “House of Showfields” and will be designed to emulate a six-room home, replete with a courtyard; a dining room for products for dining and socializing; a foyer; a lounge, and a kids’ area with high chairs, bibs, toys and educational products.

This location will have proprietary technology not only for sales data but also to learn which customers saw their products in the store and ended up interacting with the brand’s website and possibly making a purchase online. Sensors from Retail Next and Showfields’ point-of-sale software gather sales figures, traffic figures, customers’ gender, whether they touch and engage with products or just pass by, among other types of data.

Among the brands that will be sold at the Brooklyn store will be Greats, a premium sneaker brand; WTHN, a wellness company; organic skin care brand Ogee, and Lalo, which creates products for babies. House of Showfields will also offer a program of events beginning this summer.

Showfields coming to Brooklyn

What: After the Paris flagship store received a modern makeover, the French fashion house is opening a sprawling pop-up store in Seoul housed in a metallic mesh structure recalling the facade of its historic headquarters in Paris.

Why it is important: The 7,500-square-foot complex, seen as the next generation of pop-up stores, is located in the former industrial zone of Seongsu-dong, which has become a popular area filled with craft coffee and organic restaurants.

The temporary structure is due to remain in place for several years, evolving with the seasons and collections. When it opens on May 1, the store will offer the pre-fall collection designed by Maria Grazia Chiuri, artistic director of womenswear, one day after its runway debut at the city’s Ewha Womans University.

The store’s decor will feature original furniture pieces by South Korean designers The house’s signature toile de Jouy motif is printed on traditional Hanji paper, made by mixing mulberry fiber and natural wood pulp.

For the Café Dior backdrop, Dior collaborated with Korean digital design company D’strict on images inspired by the lush gardens of founder Christian Dior’s childhood home in the French seaside town of Granville.

Dior to open a pop-up complex in Seoul

What: Bergdorf Goodman and Neiman Marcus join the Farfetch Marketplace as a partner.

Why is it important: Farfetch is taking a stake in Neiman Marcus Group as part of a broader strategic partnership that will see Bergdorf Goodman and Neiman Marcus join the Farfetch platform.

The initial focus will be on re-platforming the Bergdorf Goodman website and mobile application to expand its global capabilities and services. Farfetch said it will make a minority common equity investment of up to USD 200 mn in NMG, joining existing investors including PIMCO, Davidson Kempner Capital Management, and Sixth Street.

As part of the deal, NMG said it will use Farfetch Platform Solutions to re-platform the Bergdorf Goodman website and mobile application. Bergdorf Goodman will introduce its digital customer experience and curated offering to customers globally, integrating seamlessly with the iconic New York City flagship.

Both Bergdorf Goodman and Neiman Marcus will join the Farfetch Marketplace as a partner, adding participating brands in key global geographies.

Farfetch invests in Neiman Marcus Group

What: After closing physical stores, Amazon doubles down on one-day delivery.

Why is it important: Prime members will love an increasing number of Prime shipments delivered in just one day. The company may need to justify this year's USD 20 Prime fee spike, as well as the doubling of fulfillment capacity in the last two years, which was necessary to meet demand during the pandemic.

Having largely abandoned brick-and-mortar retail outside of grocery, with traditional retailers mastering digital and omnichannel commerce and consumers returning to shop in stores, such swift delivery may be an important differentiator. Amazon lost market share to physical retailers during the holidays.

The company does plan to open a clothing store later this year, which may or may not be what rumors of its department store ambitions were about. But so far, Amazon hasn't proven adept at physical retail.

Amazon’s brick and mortar lacked a real purpose, they were designed for people to pop in and browse rather than as destinations where people would head on a mission to buy something. Ultimately, this wasn't great for driving footfall especially in an era where people are visiting shops less. The other issue is the assortment which, in many outlets, was disjoined and unfocused.

Amazon doubles down on one-day delivery

What: Target opened a 30,000 square-foot store in New York City's Time Square to continue its efforts to experiment with store sizes.

Why it is important: In March, the retailer said that it would add 30 stores to its footprint in 2022 to reach new markets and to utilize their brick-and-mortar locations that also serve as hubs for fulfillment.

In the company's latest earnings call, it was discovered that the average sales per store have risen 30% in the last two years.

Target's decision to further penetrate New York City is also a move that is different from big-box competitors. For example, the big box store Walmart currently does not have locations within Manhattan.

As of March, Target stated that it would be adding 30 additional stores to their footprint to help reach new markets such as mid-side stores in suburban areas and small-format locations in urban cores. Additionally, there is a plan to renovate 200 stores and open additional Ulta shop-in-shops, to make up part of the larger goal of investing USD 5 billion to scale their operations this year.

Target opens a new location in New York City's Time Square 

What: The state of consumer behaviors has shown to be incredibly susceptible to change throughout the pandemic, so what does this growing inflation mean for how people will shop in the months ahead?

Why is it important: Half of U.S. consumers say that rising costs of goods and services are making it hard to afford things. When asked about what the most important purchase criteria are right now, 58% of respondents cited price while 64% said that price will be the most important purchase criteria in the next three years.

In another study to understand how inflation is affecting consumer spending habits, 66% of U.S. consumers are concerned that rising costs will prevent them from paying for the things and experiences they had planned for the year. For Millennials and Generation Z, the number was 73%.

When it comes to price sensitivity, consumer research found that gas, fresh food, and packaged food are less susceptible to experiencing a change in how consumers purchase compared to nice-to-have categories. In fact, while consumers are bracing themselves for higher prices, they will continue to pay them. 65% of consumers say they haven’t changed the way they are consuming gasoline and 59% say fresh food is still important. However, 38% of consumers say they’re purchasing less apparel and 29% say they’re purchasing fewer beauty products.

An area that consumers are struggling with seems to be in planning to pay for experiences where they are taking note of rising prices in conflict with the desire to travel and plan activities after spending most of the last two years in pandemic lockdown.

With an increase in priority for sustainability in mind, despite inflation costs, 40% of consumers said they will only buy from brands that align with values, even if that means switching from brands they know and trust. This finding was true for 53% of Millennials, 46% of Gen Z and 26% of Baby Boomers.

With saving money in mind, consumers said they will try to stay home. For 38% this means prioritizing purchases for the home as a top priority. More than half of consumers said they will deprioritize going out to restaurants, while 47% said they will deprioritize entertainment and 34% said they will deprioritize beauty as a spending category.

At the same time, 23% of consumers said they are likely to use a buy now, pay later option like Affirm over the next month as a result of rising prices. At 41%, Millennials and Gen Z were almost twice as likely as consumers overall to choose to use BNPL due to inflation.

Notably, these studies revealed more than half of consumers are interested in using pay-over-time solutions this year. In doing so, consumers get the items that they need, in a way that fits their budget.

Inflation’s Impact on Consumer Behavior

What: As traditional retailers battle to retain consumers’ attention in an increasingly digital world, the role of stores is shifting away from products toward experiences.

Why is it important: The coronavirus pandemic accelerated the shift to online shopping, and with the metaverse looming, retailers are luring back visitors with formats that employ sight, sound, and smell to transport them into dimensions previously associated with gaming or movies.

Stores are no longer only competing with cafés and restaurants but competing with a Fortnite, or Roblox, or Netflix or TikTok. There’s a new generation of young customers who have extremely high expectations and a well-established aesthetic sensibility and taste level as a result of spending more time online.

The evolution has not been lost on department stores, which are competing to offer visitors transformational experiences.

La Samaritaine reopened last year after a 16-year renovation and teamed up with French audio technology company Devialet and aerospace firm ArianeGroup on what it dubbed a “sound journey to space.” Visitors entered a white sound-proofed cube where eight Phantom I Devialet speakers broadcast the sound of an Ariane 5 launch from Arianespace’s Guiana Space Center.

Selfridges touted “a new kind of retail therapy” with their Superself wellness event including experiences such as confidence coaching, breath work, sex therapy, and sensory pods promising “a safe trip.”

While the development of the metaverse is still in its early stages, retailers can’t afford to ignore its potential impact. Computing becomes spatial and is going to be a major shift. Retailers need to be investigating and investing in that space but it’s early to say what it will be like and what it will mean for retail.

Retailers get immersive as metaverse looms

What: Amazon is handling a rapidly growing number of returns that are causing a massive problem for the e-commerce giant and the planet.

Why it is important: An NRF survey revealed that a record USD 761 billion of merchandise was returned to retailers in 2021.

U.S. returns generate 16 million metric tons of carbon emissions during their complicated reverse journey and up to 5.8 billion pounds of landfill waste each year, according to returns solution provider Optoro. In the case of reverse logistics, most of the merchandise cannot be resold as it was originally, leading to massive amounts of waste.

Amazon shared that it does not send items to landfills, but rather relied on energy recovery, which means they burn the items to produce heat which will then be used to produce energy.

Amazon offers easy returns to customers, but now they are left with the problem of what to do with these goods on the back end. The boom of second-hand markets has helped provide new options for returned items with Amazon dedicating specific spaces to articles that have been used, refurbished, or that were overstock.

How Amazon plans to fix its massive returns problem

What: Harvey Nichols launched an NFT retail concept space, HN NFT Vault, at its Pacific Place Hong Kong store.

Why is it important: The NFTs are multiplying, and getting their very own space at Harvey Nichols Hong Kong. Harvey Nichols describes HN NFT Vault as a space created for beginners in NFT, NFT collectors "and everyone in between."

Harvey Nichols said it is the first major luxury department store to offer a curated selection of NFTs from “top blue-chip projects, for exploration and sale,” including CryptoPunks, Bored Ape Yacht Club, CloneX x Takashi Murakami, Azuki and Doodles.

The store is promising “a seamless purchasing journey,” where both cryptocurrency and credit-card payments are accepted. The collection has been curated to cater both to first-time buyers and NFT experts, with prices ranging from GBP 500 to more than GBP 100,000.

Each NFT can also be purchased with “a cold wallet, where the NFT that has been purchased can be securely stored. This marks the first luxury fashion retailer in Hong Kong to offer convenient, secure and swift transactions for NFT purchases.

As part of the new concept, Harvey Nichols will also be launching a service allowing NFT owners to showcase and sell their NFTs through the HN NFT Vault.

Harvey Nichols Opens ‘HN NFT Vault’ in Hong Kong

What: A reflection of the CEO of Harvey Nichols on her journey since day one.

Why it is important: Appointed 10 days before the pandemic, Malothra had to figure out by herself the means to face an unprecedented situation. The synergies with its shareholder based in Hong Kong and with previous experiences of pandemic proved quite helpful.

Harvey Nichols is owned by Dickson Group and represents eight stores in the UK and Ireland. Manju Malothra joined the company in 1998 as an audit manager, and climbed her way across the company since then, till joining the top position 10 days before the Covid hit in 2020.

For her, her inexperience at the job was compensated by the fact that she intimately knew the company, and that she, as other CEOs, had to face something entirely new, where creativity and resilience were more important than previous experience. In addition, Dickson Group, based in Hong Kong, already had experiences of pandemic, and could guide her into making the right decisions, such as closing stores before the government mandate and relocate stocks to its warehouses instead of stores.

Harvey Nichols posted a turnover of £121.3m in 2020 (year ending in March 2021), -45% compared to the previous year, and losses increased from £16.3m to £39.6m.

For Malothra, the death of department stores is a fable, as she mentions that Harvey Nichols, still seen as an authority in the country when it comes to Fashion, has competitive advantages: a curated offer, and a solid customer base.

Interview of Manju Malothra, CEO of Harvey Nichols 

What: Shein and Klarna are opening a short-term pop-up with a debut for the e-tailer in London’s Covent Garden.

Why is it important: The experience will take visitors into Shein Spring Sensation and give shoppers a chance to browse the upcoming spring collection in person.

This is a different development for the pure-play online retailer and reflects the increased visitor traffic being seen in London’s tourist hotspot.

The focus is on getting involved, with a big beauty aspect. That means how-to sessions like how to create the perfect updo, free massages, make-up masterclasses, yoga sessions, manicures, and even a calligraphy class.

Happenings such as this are also important for giving payments specialist Klarna greater exposure to the consumers most likely to use it.

Shein and Klarna open a pop-up

What: Central Group Europe CEO believes food and hospitality are only some of possible future developments at Selfridges.

Why is it important: The closing of the deal between Thailand’s Central Group and Signa to buy Selfridges Group under a 50/50 partnership is expected by the end of June, but the wheels have already been set in motion, with several projects in the pipeline that are sure to shape the future retail scene.

The transaction will see Selfridges Group become part of the combined Central and Signa portfolio of luxury department stores, which includes Rinascente in Italy, Illum in Denmark, Globus in Switzerland, and The KaDeWe Group which operates in Germany and Austria, for a total of 40 stores.

Shopping is no longer the sole attraction of these stores, which offer entertainment experiences, Rinascente was transformed from a traditional store into a luxury destination through an important restructuring of existing stores, closures, and openings, as not all could stand as department stores for the future.

The group plans to add additional opportunities in the food area and offer more high-quality foods, they plan to redevelop the Selfridge Hotel which has been closed, they will also reduce the amount of space decided to a parking lot nearby for either more retail space or to develop a residential project.

The group does not rely only on established labels and he noted that it is costly for smaller brands to open in key, central streets in cities such as Milan, Berlin, or London. Department stores offer the quality of service, the environment, and the foot traffic that can help them grow their businesses.

Selfridges’ opportunities ahead

What: Retail war is heated in India, which is considered as the market with the biggest ROI perspectives.

Why it is important: Reliance is heading towards a retail domination with a omnipresent retail footprint linked to a “super app” similar to what we see in China (and other Asian markets). Amazon which has been investing heavily in the market is making everything possible to remain significant on the market.

India’s top retailer Reliance has called off a $3.4bn deal with Future Group. This deal was already in difficulty after Amazon, Future Group’s partner, blocked it in 2020 citing violations of certain contracts.

Future Group, one India’s second-largest retailer with 1,500+ stores in the country, faces bankruptcy now that its lenders have also pulled off. The company was already in trouble earlier in the year, as Reliance seized control of hundreds of Future stores, based on non-payment of rent.

Indian group Reliance call off deal with Future Group 

What: Macy’s to spend USD 584 mn on fulfillment center that will account for nearly 30% of Macy’s digital supply chain capacity, serve customers nationwide, and employ nearly 2,800 workers.

Why it is important: Macy’s is spending big to strengthen its supply chain, by opening its largest at 1.4-million-square-foot fulfillment center in China Grove, N.C., in 2024.

For retailers, modernizing the supply chain for speed and efficiency is important to support their ongoing digital growth and meet customer demand for speedy deliveries, and help offset macro issues such as the pandemic, port bottlenecks, and labor shortages impeding the movement of goods.

Macy’s has a new, three-year, USD 3 bn cap-ex budget that’s pumped up from recent prior budgets. It’s largely devoted to growing the digital business by launching a marketplace next August, which will get the retailer into additional categories and stock-keeping units from what is on the website currently.

Considering the United States’ tight labor force, Macy’s could face challenges filling all of the positions at the center. However, the company said it offers career opportunities, competitive pay, a bilingual work environment, merchandise discounts, flexible scheduling, and access to a new debt-free education program for part-time and full-time colleagues.

Macy’s also recently invested in automated technology in the existing Portland, Tenn., and Martinsburg, W.Va., distribution centers to increase speed and capacity for digital sales growth.

Macy’s invests in new fulfillment center (Press Release)

Macy’s invests in new fulfillment center (WWD Article) 

What: Bergdorf Goodman promotes Cheryl Han senior vice president of bergdorfgoodman.com and customer strategy and Melissa Xides senior vice president of stores and brand operations.

Why is it important: President of Bergdorf Goodman, credited both women with developing teams and creating strategies that bring momentum to the business.

In their new roles, both women will continue to drive the Company's strategic vision to set the new standard in luxury.

Bergdorf Goodman promotes from within (Press Release)

Bergdorf Goodman promotes from within (WWD Article) 

What: On April 6th, Selfridges unveiled their new four-week pop-up that imagines the earth-conscious shop of the future.

Why it is important: The space allows customers to watch products of tomorrow being made up close, as the 2.3 meters tall 3D printing machine ABB IRB 5700 and to discover how innovative products made from atmospheric carbon, mushroom and pineapple leathers are created.

This supermarket of tomorrow is the latest manifestation of British upmarket retailer’s Project Earth sustainability strategy, which was introduced in 2020. It aims to “examine future shopping habits” and open “a conversation around consumption and physical ownership,” according to their creative director Emma Kidd.

This pop-up will also include a series of shoppable laser-cut corset belts and made-to-order dresses made with recycled ocean plastic from Iris Van Herpen, 3D-printed shoes by Jean Paul Gaultier and real-time tailor-made designs by artist Tejumola Butler Adenuga in collaboration with Crocs, as well as diamonds made with repurposed atmospheric carbon by Sky Diamond.

Selfridges is giving ‘The Corner Shop’ a spring update 

What: With outlets and online discounters set to grow five times faster than full-price channels, luxury brands are hoping to tap the momentum in off-price.

Why is it important: Outlets and dedicated discount retailers are gaining share as brands clamp down on both wholesale and end-of-season markdowns. Off-price sales are expected to grow five times faster than full-price from 2025 to 2030.

There’s no sure way to predict which items will sell and in what volumes each season, nor how to price them, and the need to regularly animate stores with new products means finding ways to clear unsold stock. As luxury brands have pushed their prices skyward, it’s become increasingly out of sync with their exclusive image to be seen selling their wares at a discount, whether in their own boutiques or online.

Fast-growing German e-tailer BestSecret contends its members-only marketplace will allow brands to discount online without harming their brand image. Whereas most off-price players have historically depended on the leftovers of wholesalers for the bulk of their inventory, BestSecret sources 95% of products directly from brands.

Brands need to learn to leverage both online and offline off-price opportunities, understanding the pros and cons of each one. Luxury brands mostly remain committed to traditional, physical channels for discounting including physical outlets or friends-and-family sale events. But as they sell more online, they could need more ways to discount online, too while hoping to reduce their exposure to brand-damaging public markdowns.

Brands have started testing the waters of sites like BestSecret and luxury flash sale site The Bradery. LVMH recently invested in the mystery-box off-price start-up Heat, which spreads markdowns across multiple items in bundled deals to obscure steep discounts.

The future of luxury discounting

What: The new Zara store in Madrid, concentrates all the innovations of the brand: make-up simulator, application to book your turn in the fitting room or even QR code to make an order.

Why is it important: Take a dress, pants and sweater in store, scan the label yourself with your phone using the app, unlock the lock with a QR code and get out. No more checkout at the new Zara store in Plaza de España, Madrid.

The largest Zara in the world offers over 7,700 m 2 of surface all the latest innovations of the Spanish brand. No more queuing in front of the fitting rooms: you can book your turn with the application, which sends a message when your turn comes or simply take a ticket.

Customers can now test the make-up from the new Zara Beauty line with a simulator that sends an image back onto a screen with the eyeshadow or lipstick in question.

To return an order placed online, download a QR code on the application, pass it under a scan which automatically opens a mailbox and drop it there. Just opposite, another mailbox allows you to leave your used clothes, recycled thanks to a partnership with the NGO Caritas. The withdrawal of packages purchased on the site is also robotized and allows you to withdraw your package in eight to twelve seconds. And rather than wandering around looking for an item spotted on the site, the application locates it in the store and indicates it on a map.

A true “pilot” store , it represents what will perhaps be the store of the future, a space that blurs the differences between online sales and in-store purchases. Nearly 150 million people have already downloaded Zara's app and 230 million follow the brand on social media. A collection was even created especially for the metaverse called Lime Glam, that can be worn both on the street and in the virtual world.

News Zara opens largest store in the world in Madrid (En Français)

What: Local e-commerce companies are starting to see their sales growth stagnate this year, amid intensifying competition as more firms enter the rapidly growing online retail sector.

Why it is important: E-commerce operators had previously been growing by at least 20% to 30% each year, but the rate slowed to 12% in February from a year ago, according to data released by Statistics Korea.

Coupang, the country's largest e-commerce firm established in 2010, has grown by nearly 30% every year based on its overnight delivery system with some 100 distribution centers around the country. Its losses also accumulated to over 6 trillion won due to construction costs for more logistics centers, but it still plans to build more. In order to do so, it has to make a turnaround by 2024. This is why it has increased its paid membership fees.

In 2021, SSG.com, Shinsegae Group's e-commerce unit, was up by 22% year-on-year. However, SSG.com is concerned as eBay Korea which is failing to create big synergy its other retail units.

Lotte Group's online shopping mall Lotte ON is still struggling to make its presence known in the e-commerce scene. Its revenue showed a 22.7% increase in the fourth quarter of last year, but there was no prominent driving force.

Korean e-commerce explosive growth comes to end