What: The owner of retail properties including The Dubai Mall and Dubai Marina Mall recorded sales of 4.9 billion dirham (USD 1.33 billion) with a net profit of 1.8 billion dirham last year, representing a year-on-year rise of 42% and 160%, respectively.

Why it is important: The business is likely to receive an additional boost in the short term due to the opening of Dubai Hills Mall in the first quarter of 2022.

Occupancy at Emaar Malls properties reached 87% in 2021.

Dubai’s Emaar Malls’ sales rise 42% in 2021

What: The first virtual fashion brand, launched by a retail company.

Why it is important: 96% of Korean citizens are equipped with a smartphone and the metaverse is already a reality in Seoul. Virtual fashion might therefore be extremely interesting for specific markets, but, in others, might very well result in a waste of time, capex and energy for a limited ROI.

The Korean conglomerate Lotte operates Lotte Home Shopping, a business unit which brands itself as the first media commerce company, allowing customers to understand what they want, with the right information, and purchase products at the right price.

In order to ride the Metaverse wave, Lotte home Shopping goes a step further by introducing a virtual fashion brand, presented online by a virtual model. It also plans to release a NFT marketplace in April 22 to buy and sell virtual fashion items.

Lotte Home Shopping introduces virtual fashion brand 

What: Neiman Marcus is increasing the number of Fashionphile shop in shops in its stores.

Why it is important: They have created a strong connection between their own private shoppers and Fashionphile, leading the customers to naturally use the secondhand option to declutter their wardrobes, and, by the same incidence, create a virtuous and profitable circle for Neiman Marcus.

Neiman Marcus took stakes in Fashionphile in 2019 and since then, 43,000 items have been sold for a total value of $47m in Neiman Marcus stores. There are currently 10 Fashionphile shops in the Neiman Marcus stores, and 5 more are planned in 2022.

The business model is based on a voucher system, allowing customers to bring back luxury items and get Neiman Marcus gift cards. Neiman Marcus is encouraging its fashion stylists to orientate their customers to Fashionphile as this is bringing an additional proposition to customers, while also proving extremely lucrative in terms of sales.

Fashionphile has also teamed up with Neighborhood Goods last year, which also allows to access a different customer with another positioning.

Neiman Marcus is expanding Fashionphile in its stores

What: A hardware specialist commits to guarantee lowest prices 30 days after the purchase.

Why it is important: This stunt is astutely built to drive traffic to the website or the app, as the claim can not be made in stores.

Hornbach, the leading German and Austrian DIY hardware store, launches a new stunt in the Netherlands, as in case the price they paid is lower in the next 30 days, the price difference will be refunded.

This offer is valid on the entire assortment (120,000 products) and the refund (only through form of credits) can be claimed only through the website or the app, not in store. One has to note that this tool seems crafted to increase Hornbach’s marketshare in the Netherlands, a new market for the company.

German DIY chain Hornbach refunds customers if prices drop 

What: Harrods’ “luxury for life” empowers customers to invest in pre-loved products that stand the test of time.

Why is it important: Harrods’ ambition with this initiative is to build partnerships that support circularity in luxury retail and provide services to extend product lifespans.

They have 5 different partnerships for this initiative:

• My Wardrobe HQ: Service which allows UK customers to rent an edit of Harrods’ designers
• The Restory: An aftercare service that restores accessories to their original state.
• Bespoke services at the tailors: Bespoke alterations service that offers customers the opportunity to restore or reimagine garments anew. Now, in the comfort of their homes as long as it’s within two miles of the Knightsbridge store.
• Walpole: The official sector body for UK Luxury, an organisation working on the development of a sustainability manifesto that unites British luxury brands with a common cause to drive sustainable practice in the sector.
• Fashion re-told: A luxury pop-up store that raises funds for the NSPCC through retailing pre-loved fashion. The concept highlights the importance of lengthening product lifecycle and promoting circularity in luxury.

Harrods’ “luxury for life” 

What: Bloomingdale’s flagship and e-commerce will celebrate Bridgerton’s second season premiere with a pop-up inspired by the Netflix series.

Why is it important: Netflix shopping keeps going with Bridgerton. At Bloomingdales a pop-up store features a curation that embodies the series’ modern take on Regency London.

Set in the lavish and competitive world of Regency London high society, “Bridgerton” features the glittering ballrooms of Mayfair and aristocratic palaces of Park Lane. Bloomingdale’s Carousel shop will be an immersive retail experience that blends fashion and entertainment for a truly unique pop-up inspired by the cultural phenomenon.

The pop-up immerses visitors in an English garden party. The shop’s interior is inspired by the series’ lavish balls, with a checkerboard floor and chandeliers. Two large garden trellises at the shop entrance welcome guests with English roses and flowers inspired by the floral themes throughout the series. Along with this, there will be experiences such as the Wedgwood tea shop with tea tastings, and a live string quartet.

All 6 Lexington Avenue windows at Bloomingdale’s 59th Street flagship will feature “Bridgerton” inspired displays with seven one-of-a-kind original costumes from the first season exhibited for the first time in the U.S.

The pop-up will be in place from March 3rd-16th and the windows will be up from March 3rd-28th.

Bloomingdale’s new Bridgerton pop-up

What: New filters according to diet, allergens or specific requirements are introduced to help customers with a specific diet to shop.

Why it is important: Wellness is everywhere and customers are increasingly concerned about their health as a whole. It is more than probable that this type of filter will generalize.

Walmart has partnered with Sifter, a diet-specific shopping specialist, to offer a new way to shop in their stores through Shop-by-Diet. This new app allows customers to scan grocery items to determine if they align with dietary needs.

They can also flag allergens, or desired categories (gluten free, plant based, etc…). According to Walmart, 200 m customers are following an alimentary diet and 85 m are avoiding specific types of food for health reason.

Walmart launches a shop by diet shopping app 

What: Following Louis Vuitton’s decision to progressively close all of its downtown duty-free stores in the country by March 2023, Chanel will also exit its downtown duty-free businesses outside Seoul, closing stores at the Busan Lotte Duty Free shop and the Shilla Duty Free Jeju Fashion Boutique by the end of next month.

Why it is important: The closures follow the decline in the Chinese daigou trade (a grey market in which surrogate shoppers buy lower-priced offshore products and resell them in China). Daigou shoppers accounted for more than 90% of sales at Korean duty-free stores in the years prior to the pandemic.

China overtook South Korea as the world’s largest duty-free market in 2020, with sales valued at close to USD 7 billion. GlobalData predicts the country’s duty-free sector will experience a constant annual growth rate (CAGR) of 17.4% from 2019 through 2025, largely driven by Chinese government policies promoting domestic duty-free consumption.

Chanel pulls back from Korean duty-free 

What: A report released ahead of the official results due in March shows signs that the retailer’s profits are headed in the right direction.

Why it is important: Profits are being boosted both by higher sales and by the firm’s cost-cutting drive. The less good news is that much of the success seems to have been driven by Waitrose rather than by its department stores.

The report said that while Waitrose sales boomed, John Lewis sales fell short as product shortages due to supply chain issues and lower footfall dampened spending.

When its last set of results was released last September, they showed times were still tough for the retailer but that it had begun to recover from issues that had pre-dated the pandemic. For the first six months of the financial year, profit before exceptional items was a low GBP 69 million. But that was GBP 124 million up on the 2020/21 year, when it made a loss of GBP 55 million. Importantly it was also an improvement on a two-year basis as the first half of 2019/20 had seen it making a loss of GBP 52 million.

John Lewis profits are on recovery trail

What: Plans to invest USD 2.3 billion to build a global supply chain center in the southern port city of Guangzhou.

Why it is important: Shein is becoming a giant in the retail industry and the boost in their supply chain will only make them stronger.

The project will reportedly cover an area as big as three football fields, according to an official document published Tuesday by the provincial Development and Reform Commission, showing planned construction projects for 2022 in Guangzhou.

The South China Morning Post said that as of Friday, the document could no longer be found on the government website.

Shein plans USD 2.3 billion supply chain hub

What: The mall on Manhattan's West Side is changing its mix and converting some retail square footage into offices.

Why it is important: Despite Neiman Marcus closure and the Vessel tourist attraction still closed, Hudson Yards tries to keep its appeal by adding new retailers and widening its price range.

Louis Vuitton has returned to the mall with a freestanding store, after previously operating a shop inside the Neiman Marcus store. Several restaurants and services are also on their way, and Related Cos., the developer of Hudson Yards, is expected to soon reveal that an office tenant will move into the former Neiman’s space.

It appears the mall is adopting a broader appeal, widening its price range by adding new retailers and food and beverage offerings, in several cases filling vacated space, all the while maintaining a significant luxury component, but with less dependence on it. There is 390,000 square feet of gross leasable space for retail and restaurants, a figure that excludes the former Neiman’s as well as the Tak Room and Kawi restaurants and other businesses that closed and are being converted to offices. Elsewhere around the mall, there is space for five to 10 additional retailers, depending on how the available square footage gets allocated, though a luxury retailer would want to be on the ground floor.

Food and beverage openings in the past 12 months included Jibs; Magnolia Bakery; the Ana Bar and Eatery; Naked Tomato; Ladurée, and Peakaboo. Retail shops opened in the past year include Monica Rich Kosann, Venus et Fleur, Taft, Le Bella & Co., Levi’s, Messika, Marli and Herman Miller. Soon to open: Kamasu by Kissaki, an omakase experience from chef Edgar Valerio and executive chef Mark Garcia; Ana Wine; Fellow Barber; Calzedonia and Intimissimi.

Changes at Hudson Yards

What: Q4 turnover are significantly increasing in both China and SAR Hong Kong.

Why it is important: The reported growth in China is not surprising given the healthy situation for luxury in the country (and raises questions about what comes next for luxury retailers in the rest of the world once borders reopen), however the growth rate in HK is more surprising and might suggest that the city is slowly returning to normal levels of business.

The Hong Kong-based real estate group has seen its revenue grow in Q4 2021 by double digits in 2021, in both China (between +11% and +33.4% according to the location) and Hong Kong (between +8.8% and +27.4% according to the location).

Occupancy rates are reported to be at 90%.

Swire properties sees luxury malls’ Q4 revenue grow across China

What: The German department store now combines content, products, and services on kadewe.de.

Why it is important: The goal is to offer customers the same digital diversity and experience as in the store. To that end, new product categories will be added to the online offer. The luxury concession partners will be connected to the website to become an omnichannel luxury platform.

In June 2020, The KaDeWe Group launched its online shop with about 250 brands in the women’s, men’s, and kids’ fashion categories. Last Spring, the offer expanded with beauty. Toys, travel, and home & living have recently been added. More categories will come this year such as food.

KaDeWe relaunches omnichannel

What: Retail group Fraser, plans to offload 16 retail park assets that they have accumulated over the past several years.

Why is it important: With all out-of-town assets they plan to offload, it could be worth a total of GBP 320 million.

Frasers Group may be seeking to sell based on investor demand for retail parks that have performed better than shopping centres during the pandemic. Also, retailers are using the larger store formats as distribution centres and click-and-collect hubs.

Fraser has been remodelling and updating some of their flagship city centre Sports Direct and adding physical stores to higher-end Flannels banner, which now has over 55 across the UK.

Fraser group looks to offload retail park assets

What: Lifting off Covid-19 pandemic-related restrictions has concrete and immediate effects on footfall and retail.

Why it is important: The observed pattern is the same in most of the countries where the Covid-19 restrictions have been the most complete.

The British government has decided to lift all restrictions related to Covid-19, and this move has concrete effects on the business. In the first full week after the rules were loosened, footfall reached 79% of prepandemic levels in the West End part of London.

From 27 January to 2 February, daily footfall was up +10% week on week and morning commuter footfall was up +9% on average.

This is also a phenomenon that has been observed in other countries where the Covid restrictions are totally lifted, such as Denmark.

London: West End footfall rises again 

What: Wall Street expects Macy’s Inc to report the biggest holiday sales among US department stores in coming up holiday quarter results.

Why is it important: Macy’s was able to keep supplies stable during the peak shopping season because it used multiple ports to receive early deliveries of apparel and accessories from overseas suppliers.

In their last quarter, Macy’s added 4.4 million new customers, up 28% from pre-pandemic levels, with around a third of them returning to the brand after months. Their quarterly online sales have been growing for nearly two years, thanks to its loyalty program that has attracted millions of younger customers. Macy’s plans on building on the momentum by launching a marketplace, where third-party sellers can sell brands the department store does not carry and help expand its customer base.

Macy’s expects best sales among US department stores

What: Selfridges innovates again with a new approach to wellness.

Why it is important:  They propose a wide array of activities aiming at both providing new opportunities to customers while also making money through new services.

Selfridges has unveiled its latest initiatives planned for 2022 under the codename “Superself” as part of their innovative programme dubbed Superfuture.

These initiatives include therapeutic experiences including sex counselling session, confidence coaching sessions and other services aiming at helping customers to live a “brighter lifestyle”. These sessions can be booked for a price ranging from £30 to £150 for 30 minutes to 1 hour. Seflridges also proposes a 10-minutes sensory reality experience in VR pods with the same objective.

Selfridges doubles down on wellness in 2022

What: Apple will let iPhones accept payments through a new Tap to Pay feature, turning anyone into a merchant.

Why is it important: A new update coming to the iPhone in the US, will turn the device into an always-on contactless payment terminal. Instead of asking people to bump a smartphone or credit card to a special terminal, sellers will be able to take payments using only their iPhones and an app.

The feature won’t be limited to just Apple Pay and other iPhones, contactless credit and debit cards, and other digital wallets are also accepted through a simple tap to the iPhone.

New iPhone update will turn anyone into a merchant

What: Saks Off 5th is building a more balanced assortment with many more brands and has begun using the SkyPad software solution.

Why is it important: Soaring inflation is driving consumers to shop value-priced retailers and prolonged supply chain issues mean late arriving, out-of-season merchandise that regular-priced retailers will want to unload to off-pricers.

When Hudson’s Bay Co teamed up with investor Insight Partners to establish the Saks Off 5th e-commerce business as a stand-alone operation, Insight invested $200 million into Saks Off 5th. This helped fuel digital growth by adding talent, technology and widening the company’s assortment. The investment enhances digital capabilities, including fulfilment and logistics, support infrastructure, and expanding the assortment.

With 500 added brands in 2020-2021 and Saks Off 5th planning on adding 300 more in 2022, they partnered with the Sky I.T. Group and its business-to-business SaaS platform called SkyPad. This will automate and speed the flow of information between Off 5th and vendors and provide greater insights into selling trends.

The data generated covers unit and dollar performances by style; color; size; retail door and online, across a wide range of time periods, such as week-to-date, month-to-date, and season-to-date. SkyPad provides training and support to retailers and brands.

Saks Off 5th brand and technology growth

What: The updated programme has been reimagined to “instantly” reward customers with a range of personalised benefits and a 5% cash-back offer.

Why it is important: Customer incentives are key this year even for higher-end retailers as the cost of living rises alongside inflation. That extends to loyalty schemes and easier payment options.

Points, earned across shopping, dining and by downloading the Harvey Nichols app, are then converted into cash rewards that can be spent online and in store. As members spend more, their points level increases and benefits build, offering up to 5% cash-back. Unlike many programmes, this is redeemable at any time, notes the retailer.

As part of the Rewards programme, members are also able to choose from up to 14 personalised benefits and select “those that matter to them most”. The higher their membership level, the more to choose from.

Harvey Nichols relaunches rewards loyalty programme

What: Convenience stores’ market share outrank supermarkets for the first time, amid the fast-growing trend to shop in less crowded places due to the coronavirus pandemic.

Why it is important: Sales revenue of three convenience stores (GS25, CU and 7-Eleven) accounted for 30.7% last year, following the department stores share (Lotte, Shinsegae and Hyundai). The figure surpassed the largest supermarkets, E-mart, Lotte Mart and Home Plus, by 0.3% point for the first time.

Compared to 2020, convenience stores’ sales revenue surged by 6.8% last year, whereas major supermarkets saw their sales decrease by 2.3%.

Meanwhile, retail giant Lotte Group recently announced it has completed a deal to acquire Ministop, taking control of some 2,600 branches. Taking the latest deal into account, market insiders estimate the market share of convenience stores will increase in the years to come.

Korean convenience stores outrank supermarkets 

What: The excellent retail results announced in the UK during Q4 2021 must not be taken as a new reality, since dark clouds might await.

Why it is important: The UK is currently experiencing 2 changes, one being specific (the increasing cost of life related to Brexit), and one being also experienced by IADS members, the changes in terms of peak time and traffic in stores, forcing to adapt and change opening hours.

According to data, shoppers are back in the UK however with some disparities: regions enjoy more footfall than central cities such as London and Birmingham. It appears that in London, spending does not correlate with foot-traffic: spending is one fifth lower than pre-pandemic levels, but with half of shoppers only. This could be seen as a very good piece of news, as most of retail companies (be it from hight street fashion to food) reported higher LFL sales during Q4 2021.

However, the Financial Times points out at to elements that could become worrying:

• The growing cost of living in the UK, due to Brexit, could very well result in choices made when it comes to discretionary spending (as the data suggests that affluent customers are currently increasing their spendings using the savings made during the pandemic),
• The footfall has changed in terms of periodicity: for instance, London is now more crowded at night and during the weekends, and empty during the week, forcing retailers to adapt and, for instance, change their opening hours.

UK retail is sending warning signals 

What: Givenchy’s JD.com mini programme officially launched, making it the latest in a raft of brands from luxury conglomerate LVMH to join forces with the Chinese e-commerce platform.

Why it is important: Even brands notoriously adverse to partnering with third-party e-commerce platforms, such as Louis Vuitton or Dior have signed on to JD.com’s mini programmes over the past year in order to better reach China’s young, digitally-native luxury consumer base.

“What we are offering LVMH, is the most tailored and customised business models, based on the brands’ needs,” Kevin Jiang, president of international business, JD Fashion and Lifestyle, with brands able to choose from a wholesale model, a marketplace flagship model (similar to that offered by rival Tmall Luxury Pavilion) and the newer mini programme option.

“The brands can completely control the customer experience, the user journey, the layout,” Jiang said of the mini programmes, which can be virtually identical to the brand’s own WeChat mini programmes.

Jiang says luxury sales on the platform have seen annual growth of over 200% year-on-year since 2019 and he expects a similar result in the year ahead.

LVMH double down on JD.com 

What: J.C. Penney is accelerating its digital transformation by appointing two technology executives to its C-suite.

Why it’s important: Sharmeelee Bala will serve as J.C. Penney's chief information officer and Katie Mullen will join J.C. Penney as the company's chief digital and transformation officer.

The top IT priority for now is supporting e-commerce, a vital component of operations in the context of changing consumer behaviour, as the pandemic has accelerated digitization plans by one to two years.

J.C. Penney targets IT, e-commerce overhaul with new executives