What: John Lewis experiences selling its new private label outside of its own stores.

Why it is important: It is all about brand equity, making sure that customers value the label for its quality, and then create the traffic towards the department store.

John Lewis has open a free standing store dedicated to ANYDAY, its homeware, tech and clothing private label, priced 20% lower than the other John Lewis brand ranges. It is strategically positioned to attract a new kind of clientele, according to Pippa Wicks, the CEO.

The objective of this store is to build brand awareness and direct traffic towards the nearby John Lewis department stores.

John Lewis opens ANYDAY experiential store at Highcross

What: John Lewis is retraining its department store customer service team following an increase in service-related complaints.

Why it is important: After cutting 1,00 jobs at John Lewis and Waitrose and losing its reputation of shining customer service, the retailer is trying to reinforce their principles to put customers at the heart of their business again.

John Lewis has opened a ‘school of service’ to retrain 500 staff before Christmas, in a bid to improve customer experience. Located within its John Lewis store in Stratford, east London, the school has four classrooms and one theatre.

If the voluntary programme proves effective, the retailer could expand the school to other parts of the country as well as to staff at its sister supermarket brand Waitrose.

John Lewis boosts staff training after customer service complaints 

What: Marc Rosen has been named the new CEO of JCPenney.

Why it is important: The decision is a big step forward in establishing stability for the retailer that has been through a volatile past few years.

Marc Rosen has been named as the new CEO of JCPenney, and Stanley Shashoua, who has been the intern CEO since January, has been appointed executive chairman.

Rosen was most recently executive VP and president of Levi Strauss Americas and was responsible for leading the company’s global e-commerce and retail businesses, including 3,000 stores. Before this, he spent 14 years at Walmart in a variety of senior leadership functions, ultimately serving as senior VP of global e-commerce. He began his career at Ernst & Young, providing strategic retail advisory services.

JCPenney names Marc Rosen CEO, Shashoua is executive chairman

What: Amazon has opened the doors of its first UK non-food store at the giant Bluewater mall in Kent. The store sells around 2,000 of its most popular products and is called Amazon 4-Star, because all of the items have received at least a four-star rating from customers. The location also serves as a click & collect hub for picking up online orders and a returns centre without the need for packaging and labels.

Why it is important: Although not selling fashion or beauty for now, it’s a strong signal of the once-online-only retailer’s ambitions in physical retail outside of the US where 30 such stores are operating.

The categories currently available inside are ranging from books to consumer electronics, toys, games and homewares. It also includes the most popular items from customer wish lists in a Most Wished For section. Using sources such as wish lists and reviews, Amazon is showing how its data-driven business model is ideal for putting the products it knows consumers want in front of shoppers.

Amazon opens first non-food UK store at Bluewater 

What: The slower growth is the result of conflicting forces taking place on the market.

Why it is important: Revenge spending is here, but somehow toned down by high prices, coming as a consequence to the global logistical issues, questions about the economic outlook, and a persistent fear of the virus, coming at the expense of high-contact retail activities.

Retail sales rose 0.8% from August to September 21, after a more robust +2.1% from July to August 21. Customers increased their purchases on groceries, while general merchandise, personal care, electronic stores decreased compared to August. Visa attributes this phenomenon to a persistent fear of the virus, which is coming as a conflict with a high level of savings and a strong will to consume.

Visa also notices that customers’ confidence is decreasing in September, due to high prices (linked to the global logistics bottleneck) and questions about the job market.

Visa Report

What: Five years ago, the retailer tested smaller stores and ultimately didn't move forward with them but things have changed, putting stores at the centre of the business. Ulta will also launch a media network to leverage its customer data.

Why it is important: Stores will continue to be a major source of investment while Ulta will monetize its customer data.

Out of a planned USD 1.1 billion to USD 1.4 billion in capital expenditures for 2022 to 2024, over half (57%) is allocated to stores, between opening new stores and investments in the current fleet.

Ulta shared a glimpse into how it's viewing the brick-and-mortar experience in the future. The vision is to debut a 5,000-square-foot Ulta Beauty store in smaller markets with a tailored assortment and services. Depending on how that goes, the retailer could scale the concept going forward. On its side, Sephora’s new vision for stores is a 4,000-square-foot format focused in local neighbourhoods and shopping centres rather than malls.

Ulta is also launching a media network, dubbed UB Media, to allow Ulta brands to advertise with its customers. The idea is that brands can receive Ulta's customer data, advertise across its channels, and all purchases will be driven back to Ulta. The offering provides Ulta with another potential revenue stream, and allows it to monetize the customer data it already collects.

The retailer revealed plans for its "expanded view of beauty”, less relying on makeup as a category, and a move to take advantage of the growing wellness category (makeup accounted for 53% of Ulta's net sales in 2018 and now accounts for 44%).

Ulta tests small-format stores, moves into wellness as it seeks growth 

What: The retailer is partnering with Black Owned Everything, a marketplace promoting the work of Black-owned businesses in fashion and beauty, and its founder and celebrity stylist Zerina Akers.

Why it is important: At a time when Nike is willing to be more DTC-oriented, the collaboration sees Akers and Nordstrom come together on a curated selection featuring four Black-owned brands, displayed in the Nordstrom x Nike spaces.

Simultaneous with the online presence of the collection, Black Owned Everything merchandise will also be available at four Nordstrom x Nike pop-ups in US-based Nordstrom stores.

Nordstrom x Nike Presents Black Owned Everything by Zerina Akers 

What: Qatar’s sovereign wealth fund is reportedly in talks on a deal as the Weston family that currently own Selfridges seeks to offload the business for around GBP 4 billion.

Why it is important: Could London's two top luxury department stores end up with the same owner? That's the question being asked as it has emerged that the owner of Harrods is possibly front-runner to buy up-for-sale Selfridges.

City sources told the Mail that the Harrods owner is the lead suitor. The fund, which bought Harrods for GBP 1.5 billion in 2010 is also owner of Paris-based retailer Printemps, for which it paid EUR 1.75 billion in 2013.

Canada's Hudson’s Bay Company and Hong Kong's Lane Crawford are also eyeing Selfridges, as is Saudi Arabia’s sovereign wealth fund. None of the parties involved have commented so far, however.

Selfridges has struggled during the pandemic because of its city centre locations seeing very little footfall and because tourists have been thin on the ground until very recently. The Weston family launched an auction for the company back in the summer. It's currently unclear whether any sale would also include the department stores that the business owns in other countries, including Holt Renfrew in Canada, Brown Thomas and Arnotts in Ireland and De Bijenkorf in the Netherlands.

Harrods' owner in talks to buy Selfridges

What: Through the retailer’s “Printemps Académie”, fashion experts from Paris stores have received training certificates from the well-know French fashion school ESMOD.

Why it is important: At a time when personal shoppers have become more important with distant shopping, Printemps improves their knowledge and emphasizes their value with a fashion certification.

PRINTEMPS ACADEMIE 

What: The Council of Fashion Designers of America is working closely with key retailers to support the finalists of the CFDA/Vogue Fashion Fund and other emerging designers. Unlike previous years, all 10 finalists of the CVFF have received $50,000 apiece in grants and mentorship based on their designated areas of need.

Why it is important: From exposure in their flagship stores, digital support, entrepreneurial workshops to access to merchandising and accounting teams, both department stores are providing strong support to young designers development.

Nordstrom will host an in-store installation at their New York City flagship, providing this year’s 10 finalists with exposure to the Nordstrom customer and the experience of working with a large-scale brick-and-mortar retailer. The retailer will also provide digital support and amplification opportunities through their channels. Nordstrom is giving the designers access to Nordstrom’s merchandising team, brand program team and accounting teams to talk through the nuances and structure of the tactical work that needs to go into scaling a business.

Saks Fifth Avenue is supporting emerging designers and promoting eight new voices in fashion through their accelerator program, The New Wave. The designers are CFDA/Vogue Fashion Fund finalist LaQuan Smith and alumni Alejandra Alonso Rojas and Reese Cooper, as well as ASHYA, A.W.A.K.E. Mode, BruceGlen, Busayo and Kimberly Goldson. The program offers onboarding boot camp, mentorship and entrepreneurial workshops. In addition, each brand is eligible to receive a USD 10,000 grant to support their business operations and growth, as well as dedicated marketing support from Saks.

This year’s 10 CVFF honorees are Batsheva Hay of Batsheva; Mike Eckhaus and Zoe Latta of Eckhaus Latta; Anifa Mvuemba of Hanifa; Rebecca Henry and Akua Shabaka of House of Aama; Kenneth Nicholson of Kenneth Nicholson; Jameel Mohammed of Khiry; LaQuan Smith of LaQuan Smith; Abrima Erwiah of Studio One Eighty Nine; Edvin Thompson of Theophilio, and Willy Chavarria of Willy Chavarria.

CFDA, Saks Fifth Avenue and Nordstrom Give Boost to Emerging Designers 

Nordstrom and CFDA Vogue Fashion Fund In-Store Installation Nordstrom

What: Los Angeles-based e-tailer 11 Honoré — which offers high-end women’s clothing sizes 12 to 24 — is launching at Nordstrom, marking the brand’s first retail partnership.

Why it is important: Nordstrom has been a pioneer in the size-inclusive movement and has been investing in 11 Honoré in 2019.

The brand is releasing 14 new styles exclusively at Nordstrom, priced between USD 128 and USD 248.

11 Honoré also collaborates with designers to produce more size-inclusive goods, and previously worked with LaQuan Smith. Ganni is the latest partner to join the endeavor. Originally offering sizes 14 to 16 on the 11 Honoré site, Ganni now provides sizes 12 to 22.

11 Honoré Launching at Nordstrom

What: The opening of the Jio World Drive mall in Mumbai, spread over 17.5 acres in the Maker Maxity complex close to the upscale areas of Bandra and Khar, has injected life into India's premium retail segment.

Why it is important: For years, brands eyeing one of the country’s biggest consumer markets — Mumbai — have been complaining about the shortage of options in a city where real estate is pricey and the urban sprawl too dense to easily allow large mall options. The sought-after malls — Palladium and Phoenix Market City in Lower Parel and in Orbit in Malad, respectively — are a distance away for the well-heeled and Bollywood-steeped Bandra and Khar areas of Mumbai.

Jio World Drive aims to fill that gap with its glass and steel exterior and elegant positioning, as well as the name used by several of Indian billionaire Mukesh Ambani’s projects. Ambani’s company Reliance is the largest retailer in India by revenue, with a yearly turnover of USD 21.6 billion. Reliance operates more than 12,711 stores across 7,000 cities in India, with a retail area exceeding 33.8 million square feet. Reliance Brands also operates more than 40 global brands in India, including Emporio Armani, Ermenegildo Zegna and Diesel.

Flagship stores at the mall include Diesel, Replay, Hugo Boss, Emporio Armani and Paul Smith, with an estimated 55% space taken up by fashion brands, and 32% by food and beverage. This includes 72 stores and 27 culinary outlets, typically with a six-year lease, except for the new concept The White Crow. This is a pop-up area of 17,000 square feet that brings in brands for three months at a time, providing a stream of new ideas to the mall. The focus is on how to appeal to the increasingly time challenged consumer via right-brained thinking — paying attention to the overall ambience with music, art, concierge services and other strategies.

Reliance hasn’t only opened a new mall in the Bandra Kurla complex but also a new convention centre, which appears to give India’s key Mumbai Fashion Week its first permanent address after years of constantly changing venues.

India’s New Jio World Mall Gives Luxury Brands More Space in Mumbai

What: Hong Kong sales are stabilizing thanks to government-backed consumption incentives.

Why it is important: Consumption Voucher Schemes clearly boost sales, however retailers need to top up these schemes with special offers to be more attractive to customers than the others, leading to a tension on retail prices.

August is the seventh month of uninterrupted retail sales growth compared to 2020, thanks to a stabilizing Covid-19 situation and a government-funded consumption voucher boost (CVS). August itself grew +11.9% compared to 2020, and in terms of year to date until end of July, retail sales grew as a whole by +8.1%.

The categories growing the most were jewellery, watches, clocks and luxury items, however fashion items went through an even higher peak, thanks to the additional incentives proposed by local retailers coming on top of CVS.

The lack of Chinese tourists is still heavily felt, even though tourism as a whole is now back in the black in terms of net numbers of arrivals.

Hong Kong retail sales rise again as consumption vouchers kick in 

What: Wisconsin shopping center ‘The Corners of Brookfield’ is going digital: the retailer is launching a marketplace.

Why it’s important: In collaboration with retail cloud software Placewise, The Corners of Brookfield is lauching a website.

The director of marketing and experience, Roessler, reached out to Placewise, who had earlier designed the center’s website. The goal being that consumers’s experience shopping online and offline are almost identical. A digital marketplace mirroring consumers.

The shopping center hopes to launch a full-fleged marketing place with 100% participation across all its tenants by the end of 2022, including Tempur-Pedic, Lululemon and L.L. Bean.

Furthermore, Roessler and Placewise president John Dee are also hoping to integrate restaurant tenants, as well as services from movie theater ticket booking to nail salon appointments.

Why one Wisconsin shopping center is launching a digital marketplace

What: Walmart enters Doordash and Instacart territory by maximizing the profitability of its logistical infrastructure, while at the same time generating an additional revenue stream.

Why it is important: Even if Walmart’s initial press release mentioned that its new delivery as a service offer would benefit to small and local businesses, the size of the agreement shows that it is possible to build rapidly a solid additional revenue stream making the most of the core competences of the company.

Walmart has inked in its first agreement with a customer, Home Depot, willing to use its white label delivery-as-a-service that we mentioned earlier this month.

Home Depot (USD 19 billion sales online in 2020) will be able to offer same-day and next-day delivery services in some US States at the beginning, before being able to expand nationwide by the end of the year. Home Depot charges its customers USD 8,99 for same day delivery. The partnership with Walmart will enable the company to propose this service to 90% of the US population.

This will also guarantee Walmart a stream of revenue independently from the sales achieved in its stores, and will maximize the profitability of the infrastructure it has built during the past years.

Related news:

• Walmart launches a new white label service for retailers

Walmart's delivery service lands Home Depot as its first customer 

What: Amazon announced a set of services, dubbed Amazon Local Selling, which offers in-store pickup and local delivery for businesses.

Why it is important: Local Selling is an additional sign of Amazon broadening its supply chain and logistics capacity, similarly to what Walmart is constructing through selling its omnichannel capabilities to other businesses.

Customers can purchase items from merchants and select same-day pickup at the seller's local store or opt for delivery in specific zip codes. Businesses can also offer add-on services like installation or product assembly.

Local Selling is currently available for national retailers and small- and medium-sized businesses.

Amazon Local Selling Press Release

Amazon launches in-store pickup, local delivery option for businesses 

What: Kroger makes the most of its strong brand equity and robust supply chain and enters new markets without opening a single store

Why it is important:  Logistical efficiency is nothing without strong brand recognition.

One of the largest supermarket chains in the US, Kroger plans to expand its delivery services into markets where it currently has no store (Northeast US) as a stress-test of its operational capabilities. It already achieved a digital push-only in Florida earlier this year, where its Ocado-operated fulfilment structure allowed it to grow organically faster than expected, in the absence of any store.

It plans to offer same-day and next-day delivery services in the Northeast region, thanks to a new warehouse platform, also operated by Ocado.

Analysts consider that this strategy comes from a perfect cocktail: a strong brand which is known nationwide, coupled to a very efficient supply chain. As a consequence, it can enjoy an edge even with long-established local retailers with physical stores.

JD.com opens ‘instant delivery’ retail service

What: The Brazilian mall Iguatemi has named Christina Betts, formerly Vice President Finance, CEO of the company. She has been with Iguatemi for 13 years and will replace Carlos Jereissati, whose family founded the mall back in 1966.

Why it is important: Jereissati is credited for having upgraded the mall into a unique luxury destination across Brazil, with 14 sopping centres, as well as a recently launched digital platform, Iguatemi 365.

The company is reported to have had a total revenue of USD 131m in 2020, compared to 207m in 2019 and 226m in 2018.

Brazilian Mall Giant Iguatemi Names Cristina Betts CEO 

What: The retailer plans to test a text-to-shop tool in selected areas.

Why it is important: Walmart is adding another channel for consumers to purchase goods

Walmart’s Global Tech and Store No. 8 teams have collaborated to test a text-to-shop tool in select areas.

Walmart believes that text shopping is just warming up, despite the fact that a year and a half ago, the retailer discontinued Jet Black, a shop-by-text service geared toward urban customers that were out of reach of Walmart’s stores.

Many retailers are expanding shopping capabilities through conversational channels such as voice technology, but experts believe that the tech still has a ways to go before mass adoption.

The Future is Conversational How Voice and Text are Transforming Shopping

Walmart tests text-to-shop tool 

What: The launch of V-Avenue, Central Retail’s first 100% digital mall.

Why it is important: It is all about creating the right ecosystem, able to capture customers both online and offline, based on the retailer’s name and reputation.

Central Retail is launching a digital shopping mall in partnership with a phone network. It will be divided into 3 sectors (Beauty/Home, Watches and Fashion) and will house 20+ brands.

The goal is to provide a VR experience, but also a coherent addition to the already existing digital ecosystem build by the group.

Central Retail launches virtual shopping mall 

What: a fact sheet about what we need to know today about last mile delivery.

Why it is important: the last mile delivery defines the customer experience, so a perfect execution is needed. At the same time, the notion of profitability and CSR are also impacting the options chosen by retailers to define their services.

Global Retail News compiles an interesting fact sheet about the issues raised by last mile deliveries. They represent 30% of the total product’s transportation cost, and, last year, 30% of total deliveries did not reach their right recipients at first attempt (which is an issue : 60% of customers would not return to a website following a failed delivery).

There are many solutions at hand, answering to critical questions : shall retailers opt for an integrated or outsourced fleet ? What about delivery platforms (25% to 30% fee taken by operators), personal shoppers or collaborative delivery?

The most critical topics are CSR (how to make deliveries green and sustainable) combined with the need to be profitable by encouraging customers to opt for instore pickup as often as possible.

Faster, greener, more cost-effective. The last mile challenges

What:  JD.com is the latest e-commerce giant to enter a competition already dominated by Alibaba and Tencent

Why it is important:  Chinese customers are starting to be accustomed to “instant” delivery services (1 hour or so). What will be their expectations when travelling, once international tourism opens up again?

JD.Com has launched its new initiative “shop now”, a new instant delivery retail brand, guaranteeing a delivery within 1 hours for every customer in a radius of 3 km from physical stores.

The goal is to compete with Alibaba and Meituan (Tencent). Alibaba launched a similar service back in 2015 with its supermarkets Hema.

JD.com opens ‘instant delivery’ retail service

What: David Jones completes its CSR and circular initiatives by adding a second hand offer to its rental service and specific CSR label.

Why it is important: Major retailers across the planet are now entering the second hand market: Nordstrom, Selfridges, Galeries Lafayette, Printemps, Magasin du Nord, Manor, Breuninger… however so far the profitability of the model remains to be proved.

Australia-based David Jones is entering the pre-owned market through a partnership with Blue Spinach, an Australian luxury reseller. This will allow David Jones to sell second-hand items from over 30 luxury brands, hoping to reach a younger clientele base. This is not the first David Jones’ circular economy attempt: they partnered last year with Glamcorner to propose a rental offer in their flagship in Sydney on a similar model to what Selfridges is doing. Also, they launched “Mindfully made”, a label helping customers to spot the sustainable brands.

Although the profitability of the model is not proven, David Jones wants the credit of the first mover advantage in Australia.

David Jones embraces retail

What: The group, which counts 11 luxury outlet villages in England, Ireland, Continental Europe and China, said it has witnessed the quality of sales improve since lockdown ended, and seen further proof of its retail-as-hospitality concept.

Why it is important: There is no return to normal as the business has, over the past 18 months, become more sophisticated in terms of its approach to customer acquisition and experience – and its relationship with the brands. Also, open-air shopping has a new appeal in the post-pandemic world.

The company continues to pitch itself to brands as a “full-price customer acquisition platform,” rather than a place to park out-of-season stock. So it’s more important than ever to deliver a polished offer to visitors, and to work as closely as possible with the brands to ensure that the inventory and merchandising are top notch. To that end, Value Retail has made a series of key hires in the past month from big brands including Gucci, Burberry, La Rinascente and Ermenegildo Zegna.

Sales growth through the summer and into the early autumn has been accelerating, while the average transaction value across the collection is up by 13% compared with 2019. Villages including La Vallée in France; Maasmechelen in Belgium; Wertheim and Ingolstadt in Germany, and Kildare in Ireland have seen their spend-per-visit rise by between 25 and 32% compared with 2019. Spend-per-visit at Shanghai Village has increased by 82%, while Suzhou Village has risen by 47% in the nine months to September versus 2019.

In the first half of 2021, 14% of total sales across the villages in Europe came through virtual shopping services (which launched at the start of 2021). Over the past year it has also hosted more than 355 special brand events across its European villages and nearly 100 in China.

Value Retail sees sales bounce back worldwide