What: Nike piloted a robotic circular shoe repair technology at its Nike Town London store, demonstrating the sustainable direction that major brands are taking at their retail outposts.

Why it is important: The greater availability and growing popularity of circular initiatives have the potential to transform retail spaces. Consumers will need to be seduced into opting to wait out and shop around.

Nike debuted a new circular technology at Nike Town London this past September. Named B.I.L.L (Bot Initiated Longevity Lab), the system is robot-augmented and is capable of cleaning and repairing shoes in as little as 45 minutes. The pilot programme is intended to extend the lifespan of Nike products, helping meet the brand’s circularity and sustainability goals.

Shoes are loaded into the machine – currently compatible with four different product lines – and a 3D model is created to identify the areas that need to be improved. Customers can select patches to repair different areas, adding an interactive element to the maintenance.

A B.I.L.L. repair takes about 45 minutes, But the brand understands this might not be enough to get customers to buy into the inconvenience of waiting. So the process cleverly engages customers, combatting the time of repair . Though only in its pilot stage, B.I.L.L.'s integration provides Nike with the opportunity to not only distinguish itself from its competition as an endorser of sustainability but to reimagine the customer experience in its physical stores.

Nike’s repair robot 

What: The Mexican Association of Online Sales revealed that the fashion industry had an outstanding performance in Mexico, with sales of 528 billion pesos and becoming the fourth country with the highest growth in e-commerce.

Why it is important: Mexico was the top country in e-commerce growth outside of Asia and exceeded 2019 performance, with sales almost tripling in 2022.

Digital sales represented 13.4% of total retail sales in the country with 63 million online shoppers in Mexico. Additionally, Mexicans are embracing omnichannel as the new normal with 9 out of 10 reporting they interact with online and physical stores.

Mexico establishes itself as the fourth country with the highest growth in e-commerce worldwide in 2022

What: Zara announced that it will start charging EUR 1.95 for online exchanges and returns, joining all European markets where the store has already implemented this measure.

Why it is important: Charging for returns is a concern many retailers face but Zara has seen success in the implementation of this measure.

Zara in Spain is now joining stores in its European markets in charging EUR 1.95 for online returns and exchanges. Orders can still be returned in-store or to a delivery point free of charge.

Inditex has reported that it has seen success with the new policy, seeing an increase of in-store returns and a reduction in return rates. The firm believes that this will become an industry-wide practice as sustainability becomes more pertinent for brands.

Zara starts charging customers for online returns in Spain

What: Aditya Birla Fashion and Retail (ABFRL) inducted Ananya Birla and Aryaman Vikram Birla as directors on its board.

Why it is important: Aditya Birla has partnered with Galeries Lafayette to open luxury department stores and a dedicated e-commerce platform in India.

Ananya Birla and Aryaman Vikram Birla, children of Kumar Mangalam Birla, the chairman of ABFRL, were inducted as directors on the conglomerate’s board.

The siblings will bring new energy and knowledge to the board of ABFRL, as they have already seen success on their own. Ananya’s company, which she founded at the age of 17, is one of India’s fastest-growing microfinance institutions and has crossed an AUM of USD 1 billion. Aryaman is involved with several businesses in the Aditya Birla Group and helped start the group’s D2C platform in addition to spearheading the group’s venture capital fund

ABFRL sells clothes and accessories from Louis Philippe, Van Heusen, Allen Solly, and Peter England and covers all major segments of the Indian apparel market.

KM Birla’s daughter and son inducted into ABFRL board

What: Tokyu Department Store Co.’s flagship store in Tokyo has closed as a result of a local redevelopment project.

Why it is important: The department store located in Shibuya Ward was a symbol of the famous commercial district in Tokyo.

After 55 years of business, Tokyu Department Store Co. has closed its flagship store located in Tokyo’s Shibuya Ward. The iconic store was a symbol of the famous commercial district in Tokyo and was responsible for creating a wine boom after the introduction of wine cellars in 1990.

As part of a local development project, a 36-story skyscraper housing a commercial facility, hotel, and apartments will replace the store with plans to open in 2027.

Tokyu’s flagship department store in Shibuya closes after 55 years

What:  Partnering with local bookstore Gibert, the 490 sqm is located on the 7th floor of the men’s building.

Why it is important: Printemps continues its revamp strategy with a new bookstore concept that offers more than 20,000 books including 20% of second-hand books.

Printemps Haussmann unveils a bookstore 

Related articles on department stores selling books:

Amazon to close all of its bookstores and '4-star' shops

How bookshops survived Amazon

Canadian chain reinventing bookselling

IADS EXCLUSIVE: Department stores selling books and culture

What: India is cementing its position as a growth market for luxury.

Why it is important: With rising numbers of young and affluent consumers, India has become one of the key growth markets for international luxury.

International luxury players are taking advantage of India’s rapid improvement in online infrastructure and rising numbers of young, high-net-worth individuals. Galeries Lafayette is preparing to open a 90,000-square-foot department store in Mumbai and a 65,000-square-foot store in Delhi in partnership with ABFRL, while other luxury retailers also enter the market and expand.

Experts advise caution as Indian consumers can be price sensitive and expect brands to demonstrate a connection with the local culture. However, the luxury market is expected to grow by around 3.4% from an estimated USD 5.9 billion in 2022 to USD 6.1 billion this year. The country is also slated to overtake China as the country with the highest number of millennial consumers this year.

Inside luxury’s coming-of-age in India

What: Economists are indecisive on when or if a recession will happen, an NRF economists predicts that downturn won’t be severe enough to become an official recession.

Why it is important: Even if there isn’t an official recession, consumers still feel like they’re living in one and struggling with rising costs.

Economists are still pondering the possibility of a recession. While many opinions and predictions circulate, consumers are still behaving as if there is one with inflation and rising interest rates.

The chief economist for the NRF states he doesn’t expect the downturn to be severe enough to become an official recession. Morgan Stanley also doesn’t forecast a recession in their outlook but has growth falling about 0.3% in 2023.

On the contrary, KPMG predicts a recession in the first half of 2023 for the US economy and expects to see negative GDP in the first and second quarters of the year.

The economy is expected to see slight growth this year as consumers cope with inflation and high interest rates. In 2022, consumer spending grew 2.8% in 2022 but dropped 0.2% in November and another 0.3% in December. Overall, retail sales dropped 1.1% in December.

NRF economist downplays recession possibility

What: Even though the market is just opening up, and solutions are not totally ready, Forbes argues that retail media is now a sprint retailers have to take fast.

Why it is important: They might be right when it comes to talents, as first-movers are able to experiment and identify the exact type of profiles needed, even though the topic is constantly moving.

The retail industry has become a platform for digital advertising and data monetization, representing a $100 billion growth opportunity globally (€25bn by 2026 for Europe only). Retailers have access to large amounts of data about their customers and can provide advertisers with targeted and personalized content. This granular data is becoming more valuable as technology companies change their approach to user privacy.

As such, retail media offers benefits for consumers, retailers, and brands, but of course, retailers need to have the right digital infrastructure and data capabilities to capitalize on the opportunity. To do so, retailers are either creating their own retail media platform or focusing on building a data insights platform.

The real value lies in combining the two, but this requires a new end-to-end strategy for the whole business and access to new skills. This is a fast-moving space, and retailers need to act quickly to establish a clear retail media strategy and invest in the necessary technologies, processes, and skills.

As the retail business model evolves to resemble the media business model, early-movers will have the greatest rewards. 92% of advertisers and 74% of agencies are already partnering with retailers to reach consumers, making it vital for retailers to move quickly.

Retailers need to move fast to capitalize on Retail Media 

What: In a global survey of 9,600 shoppers, data revealed that consumers are getting fatigued by inflation and turning more frugal, with expectations to shop more online to find better value.

Why it is important: As consumer behavior shifts, businesses should focus on providing more products at competitive price points to maintain customer loyalty.

The expected shift to online follows a year of higher foot traffic in physical stores. However, respondents are becoming more frugal and expect to find better value online than in-store.

Avoiding brands due to higher prices is already having an impact on loyalty. 43% of respondents stopped shopping with certain retailers because of higher prices while only 17% continue to shop with the same retailers regardless of price.

Data clearly shows that shoppers are focused on price and convenience and only a small percentage of customers are unconditionally loyal to their favorite brands as prices rise.

53% of respondents in the US stated that the products they need have been out of stock more frequently in stores in the last six months which is another contributing factor to the shift in favor of e-commerce. 52% of shoppers try to find an out-of-stock product online and 71% will then shop for the product online the next time they need it.

Inflation is shifting shoppers to buy more online

What: The Stockmann Group’s annual revenue increased by 9.2% at EUR 981.7 million. The gross margin decreased to 57.9%. The adjusted operating result improved to EUR 79.8 million.

Why it is important: In 2023, Stockmann expects the Group’s revenue to reach EUR 960 to 1,020 million and the Group’s adjusted operating result to be EUR 60 to 80 million. The guidance is based on the assumption that the continuing rise of inflation will increase costs and have a negative impact on consumer demand. The restructuring programme is proceeding according to plan, which means that all of Stockmann’s department store properties have been sold.

The Stockmann Group consists of two business divisions: the Lindex fashion company and Stockmann, a multichannel retail company with premium department stores. Strategic priorities are the following:

•    Providing the best customer experience and achieving the highest customer loyalty through the successful development of the omnichannel operating model,

•    Using strong brands and offering to enhance customer loyalty,

•    Maintaining and developing a strong commitment to fair and responsible business models and practices,

•    Seeking growth and efficiency together with third parties in order to extend the range of meaningful products and services as well as reach new customers groups,

•    Securing sustainable business by seeking growth in revenue, better cost-efficiency and efficient capital utilisation in order to improve the Group’s profitability.

The Stockmann Group’s financial report for 2022

What: 75% of Chinese customers are asking for sustainability

Why it is important: Today, they demand sustainable brands. Will they be asking for sustainable luxury stores when travelling in the future?

According to a study conducted by KPMG, 74% of Chinese customers are willing to switch to sustainable brands, and this trend is even more important among younger customers (below 34).

Nearly 3 of 4 chinese shoppers willing to switch to sustainable brands 

What: Chloé has introduced Chloé Vertical, a project that features digital IDs that open access to product and material information, repair assistance, and resale options.

Why it is important: Chloé Vertical is an industry first, and will make products more circular as well as improve the production of key raw materials.

Products in the SS23 Chloé Vertical collection use 100% traceable materials and are equipped for Instant Resale which will be hosted in exclusive partnership with Vestaire Collective.

Instant Resale will offer a price to sellers once they’ve uploaded product images and details and then be able to deliver payment immediately before the product has necessarily sold.

Through this initiative, Chloé will make participating in resale easier for customers and give them the opportunity to make informed decisions about the transparency, traceability, and circularity of their products.

Digital identification has been gaining traction within the industry as the technology enables supply chain traceability and educates consumers about sustainable product care, driving progress towards a more circular system. Chloé has committed to rolling out a digital ID on all its products by 2025.

Chloé launches instant resale using digital IDs on Vestaire Collective

What: China is allowing its tourists to travel outbound again, a move that has been eagerly awaited by many operators looking to welcome again this clientele.

Why it is important: While South Asia seems for now a favourite destination, no one really knows how long it is going to take for Europe and US to welcome these tourists again, and in what quantity they will be coming back. Talk about a headache for department stores.

China has resumed outbound group travel to 20 countries including Thailand, Maldives, UAE, Russia, and New Zealand. This move sparked a frenzy of trip planning and saw online searches for overseas destinations spike.

According to a researcher, countries with friendly entry policies towards China are preferred, with Southeast Asian countries being at the top of the list. In 2019, 11 million Chinese tourists visited Thailand and it is estimated that 5 to 6 million will visit this year.

The mass return of Chinese travellers is boosting confidence in the economic recovery of countries dependent on tourism. A survey shows that over 90% of respondents plan to travel abroad within a year. The resumption of outbound group travel is of great significance to Thai tourism for instance.

However, the full recovery of the industry may still take time due to factors such as the shortage of international flights and the high cost of group tours. Tourism enterprises are considering diversified, small-scale, and customized products to attract vacationers with niche marketing and a better service experience. The hope is for overseas destinations to be ready to embrace the influx of Chinese tourists in terms of the supply chain, ground resources, flight delivery, personnel, etc.

Chinese tourists are resuming international travels

What: The global tax refund service company released its monthly tax-free shopping business update, revealing that recovery is continuing to strengthen across Europe and Asia Pacific.

Why it is important: As travel picks up and tourists return, consumer recovery rates are increasing and duty-free shopping is recovering, particularly in Continental Europe.

In Continental Europe, issued sales in-store have a stabilized recovery at 106% in January vs. the same period in 2019, with US nationals continuing to lead the recovery in the region.

Asian shopper recovery continues to progress in Europe with South East Asia shopper recovery reaching 153%.

The Mediterranean countries are at the forefront of recovery for destination markets, with the recovery being led by France at 145%, followed closely by Portugal at 144%, Greece (139%), Spain at 120%, and Switzerland (107%).

In Asia Pacific, recovery reached 96% in January in comparison to 2019 with Japan remaining a leader in the region.

Japan led with a recovery rate of 115%, followed by South Korea at 76% and Singapore at 70%.

Within the reopened travel corridors, consumption recovered to 158% in comparison to 2019.

With Chinese borders reopening on January 8th, the consumption recovery rate of mainland Chinese consumers in continental Europe reached 22%, increasing by 4% compared to December.

Additionally, Chinese consumers’ willingness to travel reached a record high at 76%.

Global Blue’s latest report: Mainland China’s consumers’ willingness to travel reaches a new high of 76%; duty free shopping is recovering in Asia Pacific and Europe

What: Reports suggest that Frasers is preparing to buy two urban shopping centres valued at GBP 100 million.

Why it is important: Frasers has purchased several retail parks in last several years as part of its elevation strategy and seen success.

Frasers Group is reportedly purchasing The Mall in Luton and Dundee’s Overgate centre.

In 2021, the group purchased Robin Retail Park and last year, they purchased Belfast’s Boucher Shopping Park adding to its interest in around 16 retail parks and shopping parades.

The group stated that retail park purchases are part of its wider elevation strategy and commitment to elevating bricks and mortar retail.

Fraser Group to make shopping centre investments 

What: Inno, which is profitable again, could contribute to saving Galeria through its sale.

Why it is important: Inno is halfway in terms of company transformation. For that reason, its next acquirer will have to be extremely clear on the priorities to set.

Galeria Karstadt Kaufhof, the German department store chain in financial distress, is reported to plan to sell its Belgian subsidiary Inno in order to fund its own recovery.

Inno has recovered from the Covid-19 pandemic by becoming profitable again in 2022, with 16 branches reaching €314m turnover.

Galeria plans to sell Inno 

What: The retail ecosystem—which brings together Falabella.com, Falabella Retail, Sodimac, Tottus, Banco Falabella and Mallplaza—will mitigate its greenhouse gas emissions, decarbonizing its operation to be Net Zero by 2035 in its scope 1 and 2 emissions.

Why it is important: The company will begin the project with an investment of more than USD 15 million in 2023 and, in the medium term, will reduce its emissions by 65% (vs 2021) by 2030. The changes will also imply new standards for stores, such as renewing refrigeration equipment, moving towards the use of LED lights, sourcing 65% of its electricity from renewable sources by 2030, electrifying equipment to avoid using fossil fuels in addition to improving how it monitors and controls lighting and air conditioning.

Falabella commits to being carbon neutral in 2035

What: 30 luxury and retail leaders are backing the call to reinstate VAT-free shopping for international tourists.

Why it is important: VAT-free shopping could generate GBP 350 million for the economy each year and help retail sales in the UK reach GBP 1.5 billion.

The mayor of London is backed by 30 luxury and retail leaders in asking to bring back VAT-free shopping for international tourists to boost the British economy.

Harrods, Selfridges, and Burberry are some of the industry leaders backing the renewed call, in hopes to support the return of tourists and strengthen the UK as a top destination for international shoppers.

Reinstating tax-free shopping could generate GBP 350 million for the economy each year and Walpole, who has also backed the call, states that the UK could reach retail sales of GBP 1.2 billion and attract an additional 600,000 tourists.

Burberry and Selfridges join fresh call to reinstate tax-free shopping

What: The CEO of Simon Property Group is comfortable with the company’s current portfolio and doesn’t expect to buy more retailers in the near term.

Why it is important: As CEO of a mall giant, Simon’s opinion that there’s not really a lot of distress in retail currently could be a positive sign for the industry.

David Simon stated that he’s content with his company’s current position in retail and doesn’t expect to buy more retailers in the near future.

The CEO said that if the group does acquire, it will be opportunistic as most of their work has been on the bankruptcy front. While he is aware of brands that are in trouble, he doesn’t see Simon playing in any of the situations.

The business of being a landlord is also paying up for Simon. The real estate group’s net income increased 33.9% to USD 673.8 million from USD 503.2 million a year earlier and net income for the quarter was boosted to USD 90.5 million.

David Simon not expecting more retail acquisitions, for now

What: The Mexican National Association of Self-Serve and Department Stores (Antad) revealed that its associated chains opened more than 1,390 stores during 2022 and around 1.75 billion dollars were invested.

Why it is important: Investments were at a higher figure than the estimated 1.7 billion dollars. Additionally, IADS member, El Palacio de Hierro, was apart of these investments.

According to Antad, a nominal growth of 8.2% is expected for its associates throughout Mexico. The largest amount of investment will be allocated to the construction of new stores, followed by remodeling, systems and technology, training, and development of human capital.

Antad is currently made up of 92 commercial chains with more than 47,000 stores. It represents the interests of its associates, promoting the development of retail trade and its suppliers in a market economy with social responsibility.

The chains associated with Antad invested 1.75 billion dollars in 2022

What: Vietnam is the new land of opportunities for South East Asian retailers.

Why it is important: India and Vietnam might be the new hot markets to watch, all the more that they are already both quite advanced technologically speaking, and for that reason, might be reach in lessons for overseas retailers.

Thailand's Central Retail Corporation will invest $1.45 billion to double the number of its stores in Vietnam over the next five years, taking its total to over 600 in 57 cities and provinces.

CEO Yol Phokasub says the country has "immense potential for continued economic growth" (with an expected GDP growth of 6.7% in 2023 and 7.2% in 2024), and Central Retail Vietnam will invest 6 billion baht ($174 million) this year alone. The company will also renovate 10-12 Nguyen Kim electronics supermarkets and open 3-5 new supermarkets and Go! Hypermarkets.

The move comes as Japan's Aeon plans to operate 100 Vietnamese supermarkets by 2025 and South Korean retail giant Lotte also seeks to expand its footprint in the country now that it is gradually exiting China.

Central Thailand to invest $1.45b in Vietnam 

What: Pete Nordstrom discusses why Nordstrom launched their own podcast, and how it has impacted the Nordstrom Inc. business.

Why it is important: When the Nordy Pod launched one year ago, Nordstrom Inc.’s president and chief brand officer, Pete Nordstrom, took on the role as its podcast host.

The decision was unorthodox and surprising, but Nordstrom says he took on the role as the podcast “creates an opportunity to connect with customers in a way that is compelling to them.”

Each episode can be about Nordstrom Inc. itself, its culture and its people, or topics and people outside the Nordstrom world of personal interest to the executive.

Why Nordstrom launched their own podcast 

What: The American Dream has long been seen as a symbol of the malls’ decay, but even though the beginnings were difficult, the mall is seen as an example of reinvention for the US market.

Why it is important: Pure retail now involves experiences and different categories. It is not anymore only about also mixing a F&B place, but realty consider malls and department stores as third places where people have a reason to come, not only centred on shopping.

The American Dream mall is a project by Canadian conglomerate Triple Five Group to make retail shopping more attractive. The mall spans over three million square feet, and features high-end shops from luxury brands and entertainment options such as a water park, wave pool, indoor ski slope, and a Nickelodeon theme park.

Malls have been reinventing themselves to become "shop, work, live" environments, says CBRE. The mall took almost a decade to complete due to various legal issues and construction delays, and its journey has been bumpy. It lost $60 million in 2021 and missed an interest payment deadline in 2022.

However, occupancy rates are now over 80% and the mall is seen as a "learning lab" for malls to revamp their business models. Hunter believes the connection between entertainment and retail sales can help drive the latter. Malls are not in as dire of a shape as narratives suggest.

The American Dream mall sets its sight beyond traditional retail