What: Lotte to open a pop-up store showcasing merchandise from the National Museum of Korea.

Why it is important: Culture is increasingly a category per se, especially when it overlaps with national pride.

The pop-up store will be located in one of the basement levels of the department store’s Myeongdong branch. It will offer approximately 200 different kinds of merchandise for sale until June 4.

Among the items available for purchase will be a miniature statue of Maitreya in meditation, which gained popularity after BTS member RM was seen with one.

Lotte to open National Museum of Korea popup 

What: John Lewis is creating a unified retail experience by focusing on what the consumer wants and knowing the strengths of each of its channels.

Why it is important: Unified retail is increasingly being adopted across the industry.

John Lewis is focused on what the customer wants and how it can be there while also figuring out the characteristics of each channel and what makes them successful.

The John Lewis app helps unify the experience and has been an increasingly important part of the department store’s offer, as it accounted for a quarter of all online sales last year.

The retailer has seen a large number of consumers using the app and then shopping in-store and is also a great way for them to communicate their message.

As a heritage retailer, the company is focusing on educating its staff as it ramps up its digital strategy and pivots as 60% of its sales come from online.

How John Lewis is moving toward unified retail

What: The Indian company will take a 51% stake in the fashion group in a deal valued at 1650 crore rupees (about USD 202 million).

Why it is important: ABFRL is prepared for its next phase of transformational growth with this acquisition as it expands its ethnic wear portfolio.

TCNS Clothing’s portfolio includes traditional Indian brands which the company has sold through more than 650 exclusive brand outlets, 2,300 large format stores, and 1,100 multi-brand outlets in its home market.

Aditya Birla Fashion and Retail acquires TCNS Clothing

What: SM Investments reported a 33% growth in its net income to PHP17.3 billion in Q1 2023 driven by strong performances from its banking, property, and retail businesses.

Why it is important: The positive results of the conglomerate, which is invested in market-leading businesses in retail, banking, and property, reflect the resilience of consumer demand in the Philippines despite the challenges brought by the pandemic.

SM Investments, the country's largest conglomerate, reported a 33% increase in its consolidated net income to PHP 17.3 billion in Q1 2023, compared to PHP13.0 billion in the same period last year. The conglomerate's revenues in the January to March period rose 21% year-on-year to PHP 138.2 billion.

Meanwhile, the banking segment of the group accounted for 47% of reported net earnings from core businesses, followed by property at 26%, retail at 17%, and portfolio investments at 10%. BDO Unibank, Inc. reported a net income of PHP16.5 billion, up 41% year-on-year, while China Banking Corporation recorded a PHP5.0 billion net income for the first quarter, up 3% from the same period last year.

SM Prime Holdings, Inc. registered a consolidated net income of PHP9.4 billion, 27% higher than the PHP7.4 billion in the same period last year. SM Retail's net income grew 51% year-on-year to PHP3.9 billion, while revenues were up 22% year-on-year to PHP91.2 billion.

SM Investments Q1 net income grows 33%

What: Both sales and profitability improved.

Why it is important: The Stockmann Group’s revenue increased by 1.2% and was EUR 198.5 million. Net result amounted to EUR 19.5 million.

Both the Lindex division and the Stockmann division strengthened sales and profitability. The adjusted operating result improved to EUR -2.4 million. The operating result was EUR -2.9 million (9.8). The gross margin decreased to 56.4%.

In 2023, Stockmann expects the Group’s revenue to be in the range of EUR 960–1 020 million and the Group’s adjusted operating result to be EUR 60–80 million. The guidance is based on the assumption that the continuing high inflation will increase costs from 2022 and have an adverse impact on consumer demand.

The department store is being transformed into a destination hub that offers customers an inspiring environment not only for shopping but for entertainment and socialising as well. Stockmann is therefore refocusing on the Helsinki flagship experience. As the first step of this journey, a new inspirational children’s section has been built in the Helsinki flagship store. Another example of ongoing strategic repositioning is an expanded range of luxury and affordable luxury brands: Louis Vuitton’s store opened in Stockmann’s Helsinki flagship store. The partnership is an important step towards the targeted position.

Stockmann Group’s 2023 Q1 sees a positive start to the year 

What: The e-commerce platform reported USD 1.5 billion in revenue for the first quarter and announced that it would be selling the majority of its logistics business, resulting in 20% of its staff being laid off.

Why it is important: The company saw its revenue increase 25% compared to last year and is looking towards AI to help its customers.

In addition to an increase in revenue, Shopify reported USD 717 million in gross profit and an operating loss of USD 193 million, with the operating loss representing 13% of revenue, up from 8% of revenue last year.

In a public memo, Shopify said it had spent the last year focusing on its primary mission of making the best possible e-commerce product that is easier to use, more participatory, and more common.

The company is selling the majority of its logistics business to Flexport who will become their partner and preferred provider. Additionally, Shopify will receive stock representing 13% equity interest in addition to its existing equity interest. As a result of the deal, around 2,300 employees will be laid off.

Shopify is now looking to AI and the the new capabilities it can unlock to better help its customers. In the last quarter, the e-commerce platform launched a new AI assistant on its shopping app and also launched Pinterest as an advertising channel for Shopify Audiences.

Shopify reports USD 1.5 billion in revenue, lays off 20% of workforce

What: The Partnership is planning to cut more than half of its central London headquarters as employees embrace flexible working.

Why it is important: The downsize isn’t a cost-saving initiative but a result of less office space being needed as employees continue to work from home.

John Lewis Partnership to halve size of London headquarters

What: Jari Latvanen steps down and is replaced by Susan Ehnbage, who was previously in charge of Lindex.

Why it is important: Now that the transformation has been engaged at Stockmann, leadership is handed over to insiders with an experience in fashion retail business.

Stockmann plc has announced the appointment of Susanne Ehnbåge as its new Group CEO, effective immediately. Ehnbåge, who has been leading Stockmann's fashion retailer Lindex since 2018, succeeds Jari Latvanen, who is leaving the company. Ehnbåge has had previous leadership roles in NetOnNet Group and SIBA, and her appointment is seen as a move to continue Stockmann's growth and transformation strategy, and further the company's digitalization efforts,

In addition, Tove Westermarck has been appointed as the Chief Operating Officer (COO) of the Stockmann division. Both Ehnbåge and Westermarck will play key roles as the company focuses on accelerating growth and increasing shareholder value after significant debt reduction and restructuring.

Stockmann appoints a new CEO 

What: The fourth round of negotiations between Verdi and Galeria group ended without a result as the employer side couldn’t make a negotiable offer.

Why it is important: Increases in incomes are urgently needed as employees are already giving up EUR 5,500 a year due to inflation and the increase in energy prices.

Verdi expects a clear concession and negotiable offer in the next round of negotiations, which is scheduled to take place May 25 in Frankfurt.

Verdi and Galeria: Fourth round of negotiations also remains unsuccessful

What: John Edgards, the CEO of Fenwick, details his strategy  of moving out of London and to open new stores in regions.

Why it is important: European department store companies are increasingly facing a dilemma: either they become a destination shopping place but remain prisoners of the tourists flows, or they go to regions but then become more dependent on the financial health of local customers, who are subject to rising inflation.

Fenwick's CEO, John Edgar, criticized brands for aggressively raising prices while predicting the UK's emergence from its inflationary crisis.

He emphasized differentiating Fenwick through products and services instead of price, aiming to follow the successful models of Harrods and Selfridges. The company plans to invest in regional stores (only outside of London) and target 20% online sales.

Edgar also criticized the government's decision to axe VAT-free shopping for tourists, arguing it negatively impacts the retail industry.and called for its reconsideration, citing negative impacts on the retail industry.

According to Fenwick, there is room for only one department store outside of London 

What: While Chinese tourists are slowly traveling abroad again, analysts state that their shopping taking place overseas won’t return to its peak.

Why it is important: The change in behavior stands to impact brands and destinations that have previously been reliant on big-spending Chinese tourists.

China’s big-spending shoppers are back, but they’re doing more shopping at home as domestic luxury offerings have grown and prices of goods are rising across the world. With improvements made to shopping venues and customer services such as flash sales and exhibitions that encourage impulse buys, Chinese consumers are more likely than ever to shop domestically.

62% of luxury spending by Chinese consumers took place inside its borders in April, compared to 41% in the same month in 2019.

Prior to Covid, China was the world’s fastest growing source of tourists with the majority of their luxury spending taking place outside of the mainland in 2019.

Now, the future of Chinese luxury spending can be seen in Hainan, an island for high-end duty-free shopping that saw sales boom during Covid and April sales remaining 203% above 2019 levels.

With luxury being more accessible in China, Chinese consumers no longer want to wait in long lines in European cities, they want to connect with local sales associates who know them and can advise them better.

Big-spending Chinese shoppers are splurging on luxury at home, not abroad anymore

What: India is becoming an attractive market for luxury retailers as the country’s increased spending power and fast-growing economy has led to a rise in affluent customers.

Why it is important: Western luxury brands, including Galeries Lafayette who is set to open its first store in India in 2024, are taking notice of the growing luxury market in India.

Galeries Lafayette has partnered with Aditya Birla Fashion and Retail to enter the Indian market, reflecting the country’s growing appetite for luxury goods.

The luxury department store is currently refurbishing two 100-year-old heritage buildings in the heart of Mumbai to open a store that will spread across 90,000 square feet and carry more than 200 luxury and designer brands.

The partnership also includes the launch of an e-commerce platform and another store in Delhi.

Previously, India hasn’t been a major market for Western luxury brands as complex regulations and limited retail space present challenges. However, due to the increase in spending power, that seems to be changing as the World Bank ranked India 63rd for ease of doing business in 2022, a big jump from being 142nd in 2014.

While there has always been an appetite for Western luxury brands in India, brands are now targeting first-time customers who will fuel the growth.

With the Indian economy expected to grow to USD 5 trillion over the next few years, more brands are bound to enter and invest in the market as an increase in young affluent consumers continues and the aspirational middle class becomes stronger.

India’s growing economy attracts Western luxury brands

What: The newly appointed CEO is trying to mobilize minds ahead of two crucial votes.

Why it is important: John Lewis Partnership has the occasion to show that the group is still as agile as in the past, and able to transform itself in order to reconnect with growth.

John Lewis' newly appointed CEO, Nish Kankiwala, has warned that the department store and grocery group is not producing enough profit and requires rapid change. Kankiwala's comments come as the company prepares for a confidence vote in the chair's leadership and revival plan next month.

The employee-owned company, which owns department stores and supermarket Waitrose, reported a pre-tax loss of £234 million last year.

Kankiwala aims to ensure the executive team delivers the overall commercial plan and helps return the retailer to profitability. A staff poll revealed areas that need improvement, such as rewards, strategy, and transformation. The partnership's council will cast two confidence votes in May, expressing their view on the chair's leadership and support for future progress.

John Lewis not producing sufficient profit according to CEO 

What: More than half of Debenhams former stores remain empty with only 27% of vacant units having future use plans.

Why it is important: High streets are struggling to fill the void of the former department store.

The department store closed 124 stores in May 2021 and was acquired by Boohoo who then took the brand solely online.

27 of the stores have been taken over by Marks & Spencer and The Range, however, 73% of units remain empty and only 27% of locations have future use plans.

While some stores will be turned into residential and retail developments, high streets are struggling to fill the void as its difficult for single occupiers to justify rent on the size of the locations.

73% of former Debenhams stores remain empty

What: The Partnership has named Saatchi & Saatchi as its new creative partner, with the agency developing and producing all the retail group’s brand campaigns as well as the new JLP brand loyalty program.

Why it is important: The appointment of Saacthi & Saatchi follows the Partnership naming its first Head of Loyalty as the retailer looks to further grow its brands.

Saatchi will become the lead creative agency for all JLP, John Lewis, John Lewis Financial Services, and Waitrose brand and advertising activity.

The agency will develop and produce all the retail group’s brand campaigns, including its popular Christmas campaign and new loyalty campaign.

John Lewis Partnership names Saatchi & Saatchi as new creative partner

What: Macy’s wants to be involved in helping new brands to develop.

Why it is important: It is an astute way to combine social inclusion and capability to manage the product offer with a strong differentiation point. The amount remains small however in light of the size of Macy’s.

Macy's has launched a program called S.P.U.R. Pathways to support diverse and underrepresented businesses by providing access to funding, mentorship, and opportunities to be suppliers to national retailers.

Macy's has committed $30 million to a partnership with Momentus Capital, aiming to make up to $200 million in loans and equity investments available to underserved growth-stage businesses.

S.P.U.R. Pathways targets growth-stage businesses seeking to scale and supply national retailers like Macy's. The program offers financial literacy education and assistance with applications for loans and ensuring financial readiness.

Macy’s commits USD 30m to help small brands scale 

What: The retailer is returning to the US after closing all its stores during the pandemic.

Why it is important: The department store is looking to make a comeback with a revitalized shopping experience.

As a result of the pandemic, Century 21 closed its 13 stores and went out of business by the end of 2020.

Three years later, the department store is returning to New York City with a flagship location across from the World Trade Center.

The revitalized store is expected to cover a total of 100,000 square feet and will have four main floors with departments including men’s, women’s, and children's designer apparel, as well as footwear, outerwear, handbags, accessories, and fragrances.

Century 21 has partnered with Legends Hospitality, a retail operations company, to introduce a more streamlined customer shopping experience through upgraded stores and an elevated e-commerce presence.

Iconic department store Century 21 is reopening 

What: Stores are key in Walmart’s e-commerce penetration strategy.

Why it is important:  Automation is key to make the most of real estate assets and make sure they contribute to e-commerce profitability.

At Walmart's annual investors meeting, executives highlighted the importance of their brick-and-mortar network, which is within 10 miles of 90% of the U.S. population.

While the retail giant is focusing on e-commerce growth, its physical stores remain crucial to its success. Walmart U.S. CEO John Furner emphasized the stores' role in the company's omnichannel operation, stating that their proximity to customers reduces delivery time and costs.

Over the next five years, almost 90% of Walmart's capital expenditures will go toward high-return areas like e-commerce, supply chain, and store investments. By the end of fiscal year 2026, the company expects 65% of its stores to have automation capabilities, and 55% of fulfillment center volume to move through automated facilities.

Walmart also plans to continue investing in technologies that improve efficiency and reduce labor demands.

Walmart bets on wide-scale automation for e-commerce 

What: Visits to physical stores in Mexico increased by 14% during the first quarter of 2023 compared to last year.

Why it is important: The increase is the first since the pandemic and a great achievement for stores given current economic pressures.

Despite the first quarter of the year being a difficult sales period, shoppers who visited stores opted for more valuable items than last year as the number of  completed transactions remained the same but the average ticket purchase ticket increased 14% in comparison to last year.

By region, the Northeast of the country was the best performer in terms of sales growth, with a 24% increase in revenue compared to the first quarter of 2022.

By sector, the fashion division experienced the highest growth in views with a 27% increase and an 11% increase in sales when compared to the previous year.

Double-digit increase in traffic in physical stores in Mexico

What: Despite a shaky year, John Lewis sales rose by GBP 16 million in comparison to 2021.

Why it is important: The change in senior management in its fashion division has helped the category steer clear of the group’s overall troubles.

With a strong new team, fashion sales at the retailer increased by 13.7% in the 2022 fiscal year. The team has streamlined in-house ranges and branded collections to offer customers a new assortment and a reason to buy something new. The retailer launched 251 brands in the last fiscal year with 109 being in the fashion category.

The retailer is trying to move away from the idea of customers coming to them just for basics by giving their in-house brands their own design handwriting. Additionally, they are responding to the changing needs of customers with a big focus on seasonal events and tailoring.

The men’s fashion category was its most successful category, seeing a 20% increase in comparison to last year, followed by a 17% increase in womenswear.

Fashion sales soar at John Lewis despite the company’s losses

What: 2 of Siam Piwat’s iconic destinations were in the top 5 most admired malls in Thailand.

Why it is important: Thailand is an extremely competitive market and major players are able to combine operational efficiency with a very luxurious approach.

Siam Piwat Group's shopping centers, Siam Paragon and IconSiam, ranked first and third in Thailand's Most Admired Shopping Centres for 2023, according to BrandAge's survey. Siam Paragon received 25.21% of the votes, while IconSiam garnered 13.57%.

Both centers also won additional awards: Siam Paragon for outstanding marketing activities and IconSiam for Business Performance. The group's success in this survey, which has been conducted for 23 consecutive years, reflects consumers' trust in the Siam Piwat brand and its commitment to creating world-class destinations.

Siam Piwat Group’s shopping centres awarded in Thailand 

What: Amazon is nudging customer decisions by asking them to pay when they decide to return through less financially interesting partners such as UPS.

Why it is important: Such an approach makes sense for department stores as it could help them significantly nudge customers in favour of omnichannel in-store returns.

Amazon is reportedly charging customers a fee for returning products to UPS Stores when they could have used a Whole Foods, Kohl’s, or Amazon Fresh location within the same distance or closer.

The new fee aims to cover the cost of returns. Retailers and brands across various product categories are reevaluating their return policies due to rising costs. Some brands are charging return or restocking fees, shortening return windows, or using virtual try-on technology to reduce returns.

In the US, 96% of shoppers review return policies before making a purchase, highlighting the importance of these policies for customer decisions.

Amazon is charging new fees on some returns 

What: Saks has expanded its top client invite only program to include more experiences and unique merchandise.

Why it is important: Saks is finding ways to build and strengthen relationships with their most important customers.

As the largest luxury e-commerce platform in the US, Saks is committed to serving its most loyal customers and luxury consumers, which are part of their long-term strategy.

The online retailer is bringing the Saks experience to life in unique ways that are relevant to their top clients’ lifestyles through events such as their weekend getaway in Aspen and pop-up experience in Dallas with exclusive merchandise.

Through the program, Saks can offer experiences and highly personalized services to its top clients to build deeper relationships and provide members with the best in luxury fashion.

Saks expands Saks Limitless Program

What: Chinese authorities are introducing their own green certification for textiles with 26 companies currently taking part in the project.

Why it is important: The stakes are high as the Chinese textile industry generates 70% of the fibers produced worldwide and the EU, its largest customer will soon require product traceability information.

The Ministry of Industry and Information Technology has indicated that it’s working on the implementation of this future certification tool which would help reduce the industry’s carbon emissions.

The ministry stated that it will coordinate and support industry federations, high-value brand owners, and manufacturers to connect and participate in the improvement of the platform to promote it within the industry.

While no timetable for the deployment of the platform has yet been communicated, the move towards greater traceability comes at time when the EU will soon require importers to have dematerialized access to product traceability information.

In 2022, China exported EUR 43.2 billion worth of textiles and clothing to the European Union which is its largest customer.

Reborn, the future Chinese platform for sustainable textile certification