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

What: Zalando is launching a beta version of a fashion assistant powered by ChatGPT.

Why it is important: The technology will make navigating the website easier and help customers find items that meet their specific needs.

The assistant will allow customers to ask questions in their own fashion terms and words, making the website’s large assortment easier to navigate and sort through.

Customers can ask the fashion assistant what to wear for a specific event in a specific location, and the bot will understand what the weather is like and what kind of event it is and provide a written explanation with recommendations.

In the future, this may be combined with customers’ preferences, like brands they follow and products that are available in their size to deliver a more personalized selection.

Zalando launches ChatGPT assistant in Germany, Austria, UK, and Ireland

What: Nordstrom’s off-price division is in expansion mode, rebranding, and correcting past mistakes.

Why it is important: The retailer will be opening 20 new locations that are more conveniently located to its customers while also rebranding to better communicate its value proposition and better meet customers’ expectations.

The Rack’s Q4 sales were down 8.1% compared to the previous year, but 2022 sales were up 1.1% to USD 4.8 billion from USD 4.76 billion in 2021. Nearly two years ago, the retailer took some strategic bets that didn’t yield successful results and is now looking to correct those mistakes.

Nordstrom Rack is now focusing its strategy on its value proposition, “great brands at great prices” as they learned that customers come to stores for great brands with a ‘price first’ mentality. The retailer is rebranding with a new logo, ads, and messaging that better communicate the value proposition and connect to the upscale Nordstrom name.

Additionally, the Rack is resetting its merchandise mix by prioritizing 50 well-known and productive brands that are already sold at the full-price stores. 90% of the top 50 brands at full-line stores are also carried at the Rack, making up 60% of what’s been ordered for the first half of this year.

The retailer is also focusing on its “Closer to You” strategy which advocates bringing conveniences to customers, through the opening of 20 Rack stores in nine states this year. Nordstrom found that customers won’t drive more than 15 minutes in the off-price world, making location extremely important.

Inside Nordstrom's strategy for Nordstrom Rack

What: ThredUp released is 11th resale report, revealing that the global secondhand market is set to nearly double by 2027, reaching USD 350 billion.

Why it is important: The report’s global findings prove that resale is a mainstay of consumer retail and consumers are increasingly seeking out and participating in the secondhand market.

For retailers, resale often drives ROI and investor approval in many cases. Around 58% of retail executives consider resale “table stakes”, a six-point increase from 2021.

Additionally, 86% of retail executives state their customers are already participating in resale, up 8 percentage points from 2021.

In 2022, 88 brands launched dedicated resale programs, a 244% increase from 2021.

Global Secondhand Market to reach USD 350 billion by 2027, ThredUp says

What: The Chilean retailer has appointed Enrique Ostalé as its new president.

Why it is important: This is a historic milestone for the company, as Ostalé will be the company’s first president outside of the owner’s family.

Ostalé will replace Carlo Solari, who led the company for nearly a decade and will now become the director of the retailer.

Previously, Ostale held the position of CEO for Walmart International and will hold his new position with Falabella from 2023 to 2026.

The company has also announced Juan Carlos Cortés as Vice President.

Falabella announces Enrique Ostalé as new president

What: Luxury brands have been looking to Europe with renewed interest as some key cities move up the luxury agenda while smaller but fast-growing gateway markets are on the rise.

Why it is important: While new store activity has typically followed Chinese luxury consumers, luxury brands are looking towards emerging markets with redevelopment opportunities and global cities with prime rents.

In 2022, there was an 11% increase in new luxury store openings compared to the previous year.

Europe saw a 77% increase in luxury store openings and now accounts for 23% of all new openings globally. Cities such as Amsterdam, Madrid, and Milan benefitted from domestic and international tourist figures, with London being one of the most active luxury markets in Europe and maintaining the top spot for new store openings.

In Asia (excluding China), the global share of new store openings increased to 12%, the Middle East rose to 6%, and North America remained flat at 14%.

China saw the most significant decline in new openings with 41% of the global share compared to 55% in 2021. While brands agree that it remains an important market, they have also realized the need to diversify their portfolios.

While there may be fewer store openings in 2023, demand is expected to remain sturdy as reduced rents in key luxury destinations offer brands the opportunity to secure new, more attractive spaces.

Rental costs are at least 10% lower than levels seen in 2019 in a number of key luxury cities such as Toronto, Hong Kong, and London.

Ultra-luxury brands accounted for 68% of all new store openings in 2022, while the three biggest luxury groups, LVMH, Kering, and Richemont, prioritized relocating and upsizing existing sites. This was driven by increased availability and rebased rent due to the pandemic.

Thanks to elevated hospitality offerings and modern retail developments, smaller “alpha” cities such as Amsterdam, Milan, Madrid, and Toronto are seeing success.

In North America, New York, LA, and Miami are still a priority, but luxury brands are increasingly looking towards regional cities that are experiencing significant growth in wealthy households.

Southeast Asia has drawn the attention of luxury brands over the past year with standout markets including Singapore, Thailand, and Vietnam as they all are experiencing growing economies and expanding HNWI populations.

Where to next? Mapping luxury’s retail hotspots in 2023

What: 19 Galeria stores are on strike but remain open, in order to yield on the collective negotiations affecting 4,000 employees.

Why it is important: The Verdi service union’s approach brings significant pressure on the negotiations with a retailer in a hurry to engage in closing sales, while at the same time keeping a positive image (and, by mirroring effect, putting the blame on GKK).

Employees at 19 department stores of the insolvent Galeria Karstadt Kaufhof group participated in all-day warning strikes across three German states: Hamburg, Baden-Württemberg, and Hesse. Despite the strikes, the shops remained open.

The Verdi services union called for the work stoppages in response to deadlocked collective bargaining for the approximately 17,000 employees, demanding recognition of regional retail trade agreements.

The company's restructuring plan, approved by creditors, aims to close 47 of the 129 branches nationwide, resulting in a loss of around 4,000 jobs.

Galeria Karstadt Kaufhoh stores are on strike in 3 German federal states