What: After the completion of the Zurich's Bahnhofstrasse store renovation, Globus is betting on luxury to increase sales. The turnover of the 9 stores in Switzerland is to increase from CHF 540 to 700 million.

Why it is important: Ten luxury brands are moving into the store: Louis Vuitton, Dior, Valentino, Moncler, Balenciaga, Bucherer, Céline and Rimowa. Loewe and Off-White open their first Swiss shop-in-shops there.

In the newly renovated Zurich building on Bahnhofstrasse alone, sales are expected to grow by 30 to 40% from the current CHF 120 million, and the number of visitors is expected to grow by 20% from the current four million per year. In particular, the share of sales by tourists is expected to rise sharply – currently it is only 4%.

Globus Up to 40 percent more turnover after renovation

What: During the third quarter of its fiscal year, Lotte Shopping reported operating profit reached KRW 28.9 billion (USD 24.4 million), down 74% year-on-year.

Why it is important: While local retail competitors, like department store giant Shinsegae, forged alliances and made acquisitions to boost digital capabilities amid the pandemic, Lotte has lagged in the country’s e-commerce race.

Korea’s Economic Recovery Fails to Boost Lotte Shopping Earnings 

What: SPG is not only a mall management company, but a retail investor.

Why it is important: Controlling retailers and brands which are presented in their premises is both a way to improve the value of said premises, while at the same time generating scale economies. Is that so different from the private labels business in department stores?

David Simon, CEO and president of the Simon Property Group, argues that his group, a leading company in worldwide mall management, is also moving forward in pure retail, through its investments in Authentic Brands Group, SPARC (which owns Forever 21, Lucky Brand, Brooks Brothers) and J.C. Penney.

According to him, SPARC outperformed expectations, J.C. Penney (bought after ending up bankrupt) is now stabilized with a new CEO, Marc Rosen, and as a whole, these side activities contributed to 10% of the SPG share value.

David Simon insists on SPG being much more than just a mall company, and an astute investor too.

David Simon Looks at the Big Picture

What: Allbirds dropped ‘sustainable’ claim from IPO after the SEC objected.

Why it is important: The move by the SEC highlights how regulators are paying increasing attention to how companies report on climate- and sustainability-related issues.

In August, Allbirds announced that it would pursue a ‘sustainable public equity offering’ that would guarantee the company met various environmental, sustainability and governance standards. However, it repeatedly weakened the proposals in subsequent updates to its IPO prospectus.

In September it removed references to a sustainable “offering” and said it would instead follow a “sustainability principles and objectives” framework. In October it then removed half the references to the new framework, including suggestions that it could increase the cost of the IPO and that other companies could follow its “sustainable” approach.

Although the company has made eco-friendliness a key part of the branding for its wool- and eucalyptus-based shoes, they feel that existing ESG ratings are biased to companies with longer track records. Allbirds claims that the carbon impact of each pair is 30 per cent less than that of its rivals, though it has faced criticism from some activists over the way it calculates emissions.

Allbirds dropped ‘sustainable’ claim from IPO after SEC objection

What: Following two successful in-person events in Shanghai, Harrods is bringing some of China's most exciting fashion design talents to London’s Knightsbridge store.

Why it is important: The British retailer implemented a proactive approach to engage with affluent Chinese consumers who are unable to travel. Last month during Shanghai Fashion Week, the retailer hosted a three-day incubator program called The Harrods Hive. It included networking events and panel discussions with industry leaders, such as Kering, Labelhood, Tx Huaihai,and Xiaohongshu, that allowed for individuals from varied disciplines across the industry to join forces.

Running till mid-December, the space features playful puffer jackets from Chen Peng, the inaugural winner of the Yu Prize, which Harrods serves as a strategic partner, as well as pieces from Shushu/Tong, Ruohan, and WMWM, provided by the Shanghai-based fashion boutique and emerging designer support platform Labelhood.

This month, the company is due to open its first Harrods tea rooms concept in Shanghai, a space designed around bringing Harrods’ traditional British afternoon tea to Shanghai in a contemporary environment.

Harrods Spotlights Chinese Fashion Designers With New Pop-up

What: The new SoHo store will be changed on a monthly basis and partner with other local businesses.

Why it is important: The company did not say if this is a concept that it will replicate in other parts of the world, but it is designed to address consumer demand for more meaningful and unique retail experiences, especially since the start of the pandemic.

The store, at 265 Lafayette Street between Prince and Spring Streets, will highlight special collections, launches, capsules and exclusive products.

As a way to foster a sense of community in the new space, Zegna will partner with neighboring businesses to curate a selection of local experiences intended to celebrate the soul of SoHo. For the launch, that includes Sant Ambroeus, McNally Jackson Books and the Angelika Film Center. The store also features a rotating record collection of both vintage vinyls and playlists from local DJs selected by Sartori that will be updated monthly.

Zegna Lab, a New Retail Concept, Opens in SoHo 

What: The closure is part of H&M's ongoing plan to adapt its retail network in the wake of the coronavirus pandemic.

Why it is important: Last year, the fast-fashion giant announced changes in its 5,000-strong retail network, with 350 stores closing and 100 opening in 2021. In a statement, H&M France did not give a timeline for the Champs-Élysées closure. It said it has started consultations with labour unions and plans to offer jobs at its other stores to the workers impacted.

The 30,000-square-foot store opened in October 2010 after a five-year legal battle with Paris City Hall, which opposed the arrival of fast-fashion brands on the famous avenue.

Fashion retail in Paris continues to suffer from the compounded effects of a sector-wide structural crisis due to the rise of e-commerce, accentuated during the pandemic, and a lack of foot traffic, with tourists remaining largely absent and locals smart-working.

The news comes as staff at an H&M warehouse in Le Bourget, the retailer’s sole French logistics site, have been picketing to protest plans for the closure of this location, which would impact more than 150 jobs.

H&M to shut Champs-Élysées flagship in Paris

What: For the third quarter ended October 30, 2021, net sales increased 18% versus the same period in fiscal 2020 and decreased 1% versus the same period in fiscal 2019. During the quarter, Nordstrom banner net sales increased 3% versus the third quarter of fiscal 2019. Net sales for Nordstrom Rack decreased 8% versus the third quarter of fiscal 2019. Digital sales decreased 12% compared with the same period in fiscal 2020 and increased 20% compared with the same period in fiscal 2019.

Why it is important: The company is reaffirming its financial expectations for fiscal 2021. Revenue, including retail sales and credit card revenues, is expected to grow more than 35% versus fiscal 2020. EBIT margin is expected to be approximately 3.0 to 3.5% of sales.

Sales in the home, active, designer and beauty categories had the strongest growth compared with the third quarter of 2019. Comparable sales in suburban area stores continued to be stronger than urban stores in the third quarter, with both improving sequentially over the second quarter.

Gross profit increased compared with the same period in fiscal 2020 primarily due to fewer markdowns and leverage from higher net sales. Ending inventory increased 13% compared with the same period in fiscal 2019, versus a 1% decrease in sales. The change in inventory levels versus 2019 was due to the Company's actions to pull forward receipts to support early holiday sales and mitigate continuing supply chain backlogs.

EBIT was USD 127 million in the third quarter of 2021, compared with USD 106 million during the same period in fiscal 2020 primarily due to higher sales volume and improved merchandise margins, partially offset by labour cost pressure. EBIT was USD 66 million lower than the third quarter of fiscal 2019 due to fulfilment and labour cost pressures, partially offset by continued benefit from resetting the cost structure in 2020.

Nordstrom Reports Third Quarter 2021 Earnings 

What: Amazon is reported to initiate a European strategy of opening Fresh stores from its UK base.

Why it is important: This might impact relatively quickly IADS members who operate in the supermarket and convenience store categories.

Coresight reports that Amazon is planning to open 260 Fresh grocery stores in the UK by 2024, which would also be a base for further expansion in continental Europe. The analyst also points out that Amazon seems late in the execution of the plan, as in 2021, 9 stores were opened, to be compared with 25 planned.

The format is different from what is seen in the US, as the UK Fresh version is a small convenience store and not the full-range supermarket seen in the US. The UK market is extremely competitive when it comes to groceries: the grocery delivery market penetration (10%) is higher than in the US and all players are quite literate when it comes to home delivery or self-check-out. Furthermore, Europe is quite fragmented in terms of customer habits and national regulations. Blanketing the market with new stores will not be a piece of cake, but should Amazon manage to execute its plan, it will help to increase everyday retail spend share and customer loyalty, even though the growth of the grocery market itself might be more limited than in other categories.

Hundreds of Amazon Fresh stores in Europe? 

What: Klarna acquired Pricerunner, a Swedish comparison site.

Why it is important: The acquisition is a step towards ‘Google for shopping’ and offers a broader range of services to shoppers.

After launching its own price comparison feature earlier this year, the acquisition comes as a way to offer a broader range of services and as an alternative to Amazon, Google, and Facebook. This is Klarna’s fifth acquisition since July.

Klarna acquires comparison site Pricerunner for €930m 

What: Marks & Spencer has acquired a 25% stake in women's clothing brand Nobody's Child, in a bid to accelerate the revival of its clothing business.

Why it’s important: This investment is part of the group's "Brands at M&S" strategy, which uses a variety of models, including wholesale agreements, exclusive collaborations and strategic acquisitions.

Britain’s M&S Buys 25% Stake in Nobody’s Child 

What: Lotte Duty Free has announced the launch of Sogong 1st Avenue – the first online luxury duty free shop in the world.

Why it is important: It marks the next step in the retailer’s plans for the post-Covid era as well as a move to engage more with younger, Gen Z shoppers.

Lotte’s online sales increased from 25% of its business in 2016 to 45% in 2020 and the company expects the ratio to continue to grow going forward.

To tap into this shift, Sogong 1st Avenue will host more than 30 luxury brands and about 5,000 products, ranging from bags and clothes to accessories and including items which were not previously available in duty free. The company also plans to expand the offer further in the future with the launch of a wine and whiskey pavilion.

Lotte Duty Free opens first online luxury duty free store

What: The next annual report from Bain & Altagamma will be released early December. IADS will receive a copy in due time.

Why it is important: The Press release already circulated gives an idea of the main trends on the market this year.

Bain and Altagamma have announced the release early December of their annual report on Luxury. Numbers clearly show that 2020 was a pandemic blip, as the luxury personal goods market is following a V-shaped trajectory, reverting in 2021 to 2019 levels. Such a revival has been powered by local consumption, the US and Chinese dual engine, and online sales +50% between 2019 and 2020, +27% between 2020 and 2021). Growth is of course sustainable by younger customers.

Europe, Japan and the rest of Asia have, however, only partially recovered during 2021. Japan es expected to revert to 2019 levels by 2023 and Europe by 2024. The report also mentions an increasing concentration in terms of top players as leading brands now represent 33% of the market compared to 17% on 2000.

When it comes to Department Stores, Bain estimates that they represent 15% of the total luxury market in 2021, compared to 18% in 2019 and expected to fall to 10-12% within 2025.

Read the report here

Fall 2021 Luxury Report press release

What: The retailer has hired AlixPartners to review a potential separation of its dot-com and physical businesses à la Saks and Saks Fifth Avenue, with the goal of raising shareholder value.

Why it is important: In this context, the brick-and-mortar front sees positive outlooks with store closures delayed and the rolling out of smaller formats.

On the brick-and-mortar front, Macy’s said it’s delaying store closures and that only 10 stores, of the 60 left to be closed, will shut down in the beginning of 2022. The 60 stores are all cash flow positive, and the company has been noticing customers returning to stores in “C” and “D” malls, which are less productive, because shoppers feel safer there because they are less trafficked.

Next year the company will be rolling out more of its smaller store specialty formats, which include the five Market by Macy’s in Dallas and Atlanta, and one Bloomies store in Fairfax, Va. already operating.

Macy’s Results Top Expectations; Inventories ‘In a Good Place’

What: The French Fashion Institute (IFM) had its yearly “Fashion Reboot” conference, providing figures and perspectives on the French fashion market.

Why it is important: A small increase in clothing sales for 2022 (+3% compared to 2019, +13% compared to 2020) is planned. Such a growth reflects both the 15% drop that has happened in 2020 and the 17% decrease between 2007 and 2019. As a result, the market has lost 30% of its value since 2007.

49% of fashion brands and retailers surveyed by the IFM plan to increase their prices by 5% to 10% in 2022.

Comparing the first three quarters of 2021 to the same period in 2019, there is an overall drop of 11.7% in sales. It affects department stores and variety stores (-32.6%), independent multi-brand stores (-21.7%), hyper and supermarkets (-17.8%) and specialty chains (-14.9%). Mass-market posted a relative balance of -0.3%, while pure-players showed an acceleration of 20.6%.

All channels combined, online sales increased by 17.5%, compared to 3.2% for physical networks. For department stores, growth is 14.6% online, compared to 0.5% in stores. In the mass-market, online sales grew by 22.5%, compared to 12.6% for the physical network. And among specialty chains, the Internet is up 28.1%, against 4.3% in stores. In two years, the share of online has increased on average from 7 to 16% of the turnover.

Plus de la moitié des marques de mode vont relever leurs prix en 2022

Fashion Reboot 2021

What: Partnering with Facebook to offer shoppable livestreams and content for their “Joy.Fully” campaign launch.

Why it is important: The collaborations with Pinterest and Facebook are a continuation of the retailer's efforts to reach new consumers through livestreams and AR technology.

For the campaign, an AR lens allows customers to use their facial expressions to pick the products that spark joy for them. From that lends, shoppers can visit Walmart’s gift finder experience to purchase products.

As part of the campaign, the company is also introducing the first large-scale launch of shoppable recipes on Pinterest. The initiative allows consumers to seamlessly add ingredients to their Walmart carts for easy purchase.

Walmart to use AR, shoppable content to connect brands with consumers 

What: The new marketplace will significantly expand the company’s assortment in existing categories and brands, and introduce a range of new categories.

What is important: The digital business is targeted to generate USD 10 billion in sales by 2023. The marketplace is set to provide revenue on top of that target and expand the assortment at a low incremental cost.

Macy’s is partnering with Mirakl, the industry-leading enterprise marketplace technology company, to power the platform.

Macy's to launch a curated marketplace

What: Richemont is in “advanced” discussions to merge its YNAP platform with Farfetch, building on a neutral, industry-wide platform, built on the latest omnichannel retail technologies, to support the digitization of the luxury industry.

Why it is important: The merger would result in an acceleration of luxury e-commerce, making this part of the business even more difficult for department stores.

YNAP would leverage Farfetch Platform Solutions to support its ongoing transition to a hybrid business model, the Richemont brands would leverage Farfetch technology to accelerate their online developments and Richemont brands would join the Farfetch marketplace.

Richemont also reported a strong set of first half results, revealing the pent-up demand for luxury watches and jewelry during the pandemic. Richemont has also learned from its partnership with Alibaba. It was initially meant to promote the Net-a-porter and Mr Porter in the region – and to the traveling Chinese consumer – and has since expanded to include partners Artemis and Farfetch. Richemont gained a better understanding of Alibaba’s approach to digital marketing in China, including ‘shoppertainment,’ and of their operating model cantered around a network of Tmall partners.

Richemont, Farfetch in ‘Advanced’ Discussions to Merge Platforms 

What: The retailer has partnered with Vaiv Company, a domestic artificial intelligence to create the metaverse version of the department store's online commerce platform. Starting in the first half of 2022, customers will be able to shop and try on different products as they would do in the real world.

Why it is important: The move comes as an attempt to develop digital business, which is lagging behind when compared to local competitors.

Lotte Department Store to create metaverse commerce platform

What: After a successful pilot in Philadelphia, Ikea is bringing its “Buy Back & Resell” service to 33 US stores from 1 Nov to 5 Dec.

Why it is important: The program allows loyalty members to get store credit for gently used Ikea furniture which is sold through an “As-Is” section at the store.

This is one of the many moves Ikea is taking towards sustainability during the holiday season. For the Black Friday weekend, Ikea Is having “Green Friday” where they will have a dedicated section called the Sustainable Living Shop that features sustainable products and solution to making green living easier and more affordable. Loyalty members can also get discounts on sustainable home solutions and Ikea food products with sustainability certifications.

Ikea expands resale program across 33 US stores for the holidays 

What: The retailer is looking for environmental “innovators” and has launched a GBP 1 million ‘Circular Future Fund’ to challenge the “make… use… throw away” model.

Why it is important: Part funded by the sale of 10p plastic bags in stores, John Lewis hoped to unearth “scalable” ideas “helping to accelerate the transition towards a more circular economy”.

The fund will offer individual grants of GBP 150,000-GBP 300,000. Participants are invited from academia, charities, social enterprises, and businesses that are less than five years old. An independent panel will review the projects.

John Lewis launches £1 million product sustainability challenge 

What: House of Fraser is to close its flagship store on London’s Oxford Street in January, in the latest blow to the UK’s prime high street.

Why it’s important: The building’s owners, the German Conle family, will be redeveloping the site into six floors of offices with retail on the ground floor, a pool and gym in the basement, and a rooftop restaurant. However, it is understood House of Fraser will go back into a smaller part of the building once the revamp is complete.

House of Fraser to close London flagship store 

What: Balenciaga, Nensi Dojaka, Christopher John Rogers, I.Am.Gia, The Attico, Christopher Esber, Coperni, Area NYC and Mach & Mac have been named most influential fashion brands of 2021.

Why it’s important: The pandemic has accelerated some changes in the brands ecosystem. The new trends cycle has created opportunities for smaller, independent brands, as new social media platforms favor authenticity and entertainment.

Who Had the Biggest Influence in Fashion in 2021

What: Geoffroy van Raemdonck says the company is rebounding and supported by remote selling "scaling" relationships with customers.

Why it is important: The executive discusses remote selling development and changing the compensation structure.

“That’s something that existed in an unstructured way, where sales associates were texting to their customers. But in 2019 we built Connect, which is a clienteling tool, and in March 2020 we rolled it out to 50 associates as a beta test for two weeks and then the pandemic hit, and we accelerated that rollout. Those tools have done so well for us that we have continued to invest and it’s agile. It releases new features.”

With this third channel, the goal is “to scale the relationship” with customers, said van Raemdonck. It involves utilizing artificial intelligence machine learning, through Stylyze, a Seattle-based, women-founded SaaS platform that Neiman’s acquired last June. “It basically tells the sales associate; these are the customers you should call, and these are the looks you should provide.”

According to van Raemdonck, NMG has had eight million client interactions since launching Connect and sales associates interact with 50 to 100 customers via Connect each week, leading to significantly more conversion.

With the onset of Connect, NMG changed its compensation structure. “We reward sales associates for every interaction they’ve had so if you engage on Connect, but a transaction doesn’t happen immediately, the sales associate still gets credit,” provided the products discussed are subsequently bought online or in the store, van Raemdonck explained. “As long as we can track that there was an interaction, we give credit to the sales associate.”

Inside Neiman Marcus’ Post-Bankruptcy Playbook