What: LVMH keeps the same trajectory in terms of growth over 2019, at +11% in terms of consolidated sales.

Why it is important: The trajectories of the different divisions have not significantly changed when compared to the first half of the year report and 2019 sales. Perfumes & cosmetics and selective retailing divisions are still struggling to recover from pre-pandemic levels.

Sales at LVMH fashion and leather group division kept on growing during Q3, albeit not at the same pace compared to the first half of the year. The division grew +24%, for a revenue up +38% compared to pre-pandemic levels. Asia slowed down a bit in terms of growth due to the new policies implemented by the Chinese government.

Wines & spirits, and hard jewellery also grew over 2019, respectively by +10% and +4%. The perfumes & cosmetics and selective retailing divisions, although significantly growing over LY, have not yet recovered to the 2019 levels, as they are trading respectively by -2% and -23%. In total, the group’s revenue grew by +46% on the first 9 months over 2020, and +11% over 2019.

lvmh 2021 third quarter revenue

What: The scheme allows customers to get Browns credit and contribute to a donation

Why it is important: As Browns belongs to Farfetch, one can wonder if this initiative is a way to test and evaluate such a scheme before scaling it up to its many partners.

UK-based luxury retail Browns, owned by Farfetch, teams up with Thrift+ to allow customers to return their old garments to the retail. The system is simple: they receive a donation bag to be filled in and returned in exchange for Browns credit when they sell on Thrift+. A third of the resale value goes to Thrift+, a third to Browns and the rest to a charity.

Browns launches clothing takeback scheme 

What: Walmart and Netflix are teaming up to offer exclusive merchandise leveraging shows’ popularity.

Why it is important: The Netflix Hub at Walmart is the streaming service's first digital storefront with a national retailer.

Walmart’s partnership with Netflix makes it a major destination for fans who want to purchase their favorite shows’ merchandise.

Some of the products include a “Stranger Things” cassette player, "Ada Twist" plushie, "Nailed It" baking kit and "Waffles + Mochi" cookbook. Walmart will also allow fans to vote for which products they want to bring to life through an initiative called Netflix Fan Select.

The Netflix Hub at Walmart also furthers Netflix’s place in retail following its online shop that was launched in June.

The partnership may be a way for Walmart to tap into Netflix’s viewership and acquire new customers.

Walmart teams with Netflix on exclusive products, digital storefront

What: The retailer is launching the new season Moncler collection with a virtual pop-up set inside the Timmelsjoch Museum in the Austrian alps.

Why it is important: Instead of simply dropping the product on Mytheresa’s “new in” section, the retailer and Moncler have gotten extra creative with a 360-degree virtual pop-up shopping experience that takes customers on a virtual tour of Austria’s Timmelsjoch Museum.

There are an array of features, from videos of the museum’s unique alpine location to information about individual products from the new winter collection, which can be purchased directly from the online museum-cum-store.

The range includes two exclusive products, the Cuvellier jacket and Cotonniere coat, building on an ongoing partnership between the two partners. Mytheresa’s focus is on timeless pieces and major brand names. Its new lifestyle categories, such as ski, have been part of its success recipe in the last year.

Mytheresa debuts virtual pop-up with Moncler

What: The retailer announces its collaboration with Lablaco, a specialist in circular fashion. to propose rental options to customers. Such pieces will be traced thanks to blockchain technology.

Why it is important: The initiative, only implemented in its Berlin flagship of Mitte Gart for now, will last until the end of the year for H&M to try a combination of two current trends, blockchain and rental.

Twelve pieces are available to customers to be rented for a period ranging from 5 days to 3 weeks. Each piece will bear a label giving access to its own history, stored in a dedicated blockchain. Customer renting it can also contribute to the information chain by uploading the looks obtained with these pieces. Upon their return to the store, the pieces will be checked, cleaned and prepared for a new tenant.

H&M puts blockchain at the service of rental

What:  The new concept is all about experience with a local market feeling

Why it is important:  Having the best offer is not enough anymore, customers must also be entertained and transported into new-generation experiences.

Wellcome, a HK-based supermarket chain, has introduced its new store concept, called “Wellcome Fresh”, on a 500 sqm surface (the largest supermarket in HK yet). The store features 23 zones displaying 15,000 products including ultra-fresh ones.

The concept is largely experiential, with a décor reproducing a local traditional market. The offer also includes a food street corner, local snacks and a gourmet food offer that can be consumed on site.

Hong Kong's Wellcome unveils new Fresh store format

What: The new Bloomie’s store starts attracting Gen Z customers.

Why it is important: It is all about test & learn process and careful expansion, instead of new stores rollout plan.

Bloomingdales has launched its new 2,200 sqm format Bloomie’s in Virginia at the end of summer 2021. Unlike Nordstrom local, which is purely a service hub, Bloomie’s aims at mixing services with a very strict curation of products due to its size. We already reported the 3 points of differentiation of the format:

• Multitasking sales force,
• Multiactivity cash and service desk,
• Ability to easily connect with larger stores to perform sales by distance.

The ability to effectively curate the merchandise and show the sales staff what will be received is enabled by a specific usage of a fashion platform, NuOrder, normally used for wholesale ordering.

Since the store opened its doors, it seems to appeal to Gen Z customers and to get traction in casual wear (especially denim), active wear and fine jewellery.

How Bloomingdale’s is targeting younger customers with boutique Bloomie's

What: The department store has signed a long-term partnership with the licensed sports merchandiser. The deal will allow Macy’s to offer 20 times as much merchandise on its website and mobile app.

Why it is important: Macy’s will operate the front end of the e-commerce business and Fanatics will fulfil and ship the orders.

The expanded assortment will include officially licensed men’s, women’s and children’s apparel, jerseys, hats, collectibles tailgating and novelty products from all major sports leagues — NFL, NBA, MLB, NHL, MLS, NASCAR and others — as well as hundreds of professional and college teams. It will encompass product from brands including Fanatics, Top of the World, Under Armour, Adidas, New Era, Nike and WinCraft.

Macy's teams up with Fanatics

What:  Walmart customers are happy to pay a membership to access first to seasonal discounts

Why it is important:  IADS believes in paying subscription models and this example shows that even a basic service such as access to sales can be an incentive to customers to apply.

Walmart+ customers, who pay a USD 98 annual fee to be part of this loyalty programme, will enjoy an early access to the Black Friday deals, as everyone is afraid of the potential out-of-stocks in stores due to the global logistical bottleneck.

Walmart also expects this move to boost membership registrations, as 1/3 of customers are worried about the end of the year supply issues. This early access to sales is coming on top of already existing perks: an app allowing to skip the checkout line, free unlimited grocery deliveries, fuel discounts. It is estimated that they currently have 32 million subscribers.

Holiday 2021 Walmart+ members get first dibs on Black Friday deals

What:  Saks Fifth Avenue has opened its 2 first SaksWorks in New York, in partnership with WeWork

Why it is important:  It is all about creating new sources of revenue out of deceiving spaces: a kids space in the Manhattan flagship, a former store which was shut down before the pandemic. The question which remains is to know how these spaces can be comparable in terms of profitability with what retailers are used to.

Based on the reasoning that in the post-covid world, living rooms are offices and offices need to look like living rooms, Saks Fifth Avenue announced the opening of Saksworks in partnership with WeWork last August (see our news here). Although it was imagined in 2019, and announced last August, the first two spaces opened in September 21, on the 10th floor of the flagship in Manhattan and another one in the Financial District outpost (that has been shut down in 2019 after 2 years of activity only). Other locations are planned in Long Island, Westchester and Greenwich.

Accessible with either USD 50 day passes or a USD 300 monthly subscription, the space is filled with memorabilia (candles with an exclusive scent), on-site incentives to eat, drink or buy products, as well as a gym equipped with Peloton bikes.

The journalist, by reminding that a paying semi-privacy is not the same than a free, full privacy, ponders how long this concept might take to fully catch on.

SaksWorks Is Part WeWork, Part Department Store. Can It Work

What: It has reportedly become the UK’s largest marketplace across fashion, beauty, sport and homeware.

Why it is important: After closing all stores almost a year ago, Debenhams’ platform accounts for 300 million UK website visits per year and is positioned as the number two retailer of skincare products in the UK while it has the largest market share in make-up products. It’s clearly targeting leadership in other categories too with the launch of the marketplace.

The Boohoo Group-owned retailer and Mirakl (powering the platform) said the new marketplace “enables Debenhams to meet evolving customer demand, rapidly scaling [the] assortment to more than 70,000 new products in three months”.

Debenhams said it can now “quickly onboard new brands, as well as maintain and extend both existing Boohoo and Debenhams brand relationships”. The retailer has already made around 200 new brands available through the new marketplace, and “new suppliers and brands are joining weekly”.

Debenhams launches giant marketplace as it targets fast growth 

What: A new report indicates efforts ranging from saving energy through LED lighting to stepping up sourcing from minority-owned businesses.

Why it is important: Besides energy consumption reduction to restricted substance list for private brands, Macy’s also commits to being more diverse and inclusive.

By 2025 the retailer expects to reduce energy consumption by 10% from a 2018 baseline, and reduce water use by third-parties manufacturing Macy’s private brands by 25% against a 2019 baseline in areas of “high water stress.”

Macy’s is developing for the first time restricted substance lists for private brands. By 2025, Macy’s intends to have 40% of its private brand products made with preferred sustainable fibres. Also by 2025, all beauty, baby care, personal care and household cleaning products on Macy’s website will be required to disclose their ingredients.

Since 2010, Macy’s has reduced total energy consumption by more than 17.8% through LED lighting retrofits at many of its locations. On solar power, Macy’s has more than 100 active solar sites nationwide. Through a partnership with Volta Charging, the retailer has free electric vehicle charging stations at 37 store locations.

Aside from the environment, the Macy’s report covers the agenda to become more diverse and inclusive in its employee makeup and its matrix of suppliers.

Macy’s said that as of 2020, only 24% of those at the senior director level and above were ethnically or racially diverse, while 76% were White. Even as many companies set aggressive targets to increase racial diversity in their senior management, Macy’s said its goal is simply to reach 25% diversity at the senior director level and above this year, and 30% by 2025. With suppliers, Macy’s intends to achieve 5% spend penetration on diverse suppliers and triple its spend with Black-owned businesses by 2023.

Macy’s Elevates Sustainability and D&I Goals

Macy's Inc Sustainability Report 2020

What: A chinese mall management giant is going public in Hong Kong.

Why it is important: This reflects both the need to “normalize” giant companies in China by no longer remaining fully private, as well as the maintained attractivity of Hong Kong for Chinese groups, in spite of the recent comments made by international banks.

Zhudai Wanda Commercial Management Group, part of the Dalian Wanda Group, has filed for a HK IPO listing, looking for a total valuation between USD 3 and USD 4 bn.

The company manages 380 malls in mainland China, 54.2 million share metres with an average occupancy rate of 98.8%. It went through a -8.8 decrease in 2020 due to Covid-19 (representing a loss of USD 172 m).

It is 69.9% owned by Dalian Wanda Commercial Management Group, a Chinese conglomerate.

Chinese Mall Management Giant Files for Hong Kong IPO

What: In her first feature interview as Macy's chief merchant, Nata Dvir discusses category changes and addresses past criticisms of the business.

Why it is important: Like many retailers capitalizing on the current financial health of consumers and their eagerness to shop, Macy’s sales volumes this year are exceeding 2020 and 2019 levels.

Strategies to diversify the offering, experiment with smaller formats, and to capture market share in younger segments where the retailer has long fallen short seem to be kicking in, and despite continuing store closings, Covid, inventory and labour shortages, perceptions on the business are changing for the positive.

Nata Dvir, a Macy’s veteran stepped up to the role of chief merchandising officer of the Macy’s brand last February, after serving as senior vice president and general business manager for beauty and centre core merchandise. She reports to Jeff Gennette, Macy’s chairman and chief executive officer.

When asked if the expansive scope make it hard to have a clear identity, the executive says “one thing I always ask my team is ‘why would a customer buy this at Macy’s?’ Why Macy’s for a specific category? Sometimes it’s about service and experience. Sometimes it’s about broad assortments.

Sometimes it’s about price. So being really definitive for each one of our categories, around the role they play at Macy’s, that’s been the focus.”

Dvir is in charge of bringing younger customers to the forefront, in all categories. “I actually think of the 28- to 45-year-old customer” she said. Among the 5 million new customers attracted last quarter, many of them are coming from the online business and in store, and also thanks to new categories: contemporary and beauty. “We are also seeing a lot of new customers in home. We are a department store. We carry many categories, so it’s about getting us all focused on getting the right assortments, simplifying our pricing, being more relevant for a younger customer that increases the customers’ basket.”

Macy’s has always been strong in special occasion, tailored clothing, dresses, shoes and the gifting category like fine jewelry and fragrance. Those categories will continue to be important. In order to expand the assortment, more casual in apparel, like outfit completers, whether that’s fashion jewelry or handbags will develop. Macy’s also develops new categories: “That’s why we are so excited about toys around this Millennial mom. We will have all the toys that sit under the Toys “R” Us name, and everything from Mattel, Barbie, Fisher-Price. And then in 2022 will come to see that come to life in store.”

When asked about further adding new categories, Macy’s will continue to test new ones. “It’s how we learned about the demand for toys. We launched toys two years ago and now we’re scaling it. We will always test new categories, primarily starting online. So if you think of pets, you will see fashion for pets. At this point technology is not a big growth category for us. What you are really starting to see is a focus on categories we’re good at and expanding them, such as textiles. So it’s not only about adding new categories. It’s taking the categories we are really good at and making sure we continue the dominance by expanding the assortment.”

Amid a Season of Progress, Macy’s Top Merchant Talks Strategy 

What: Korea's retail giants are accelerating measures to improve their business structures and cope with online shopping trends.

Why it is important: Korean retail is rapidly changing from Lotte deciding to make its staff younger to Shinsegae acquiring eBay and developing its fulfilment centres.

Lotte Department Store, in particular, is well-known for keeping its employees for years. Maintaining its staff for a long time without deliberately changing the organizational culture has led to the creation of a rigid work environment and a hierarchical corporate culture. Lotte Group Chairman has ordered the company to develop a young and communicative work culture. At the same time, Lotte Group's retail unit, Lotte Shopping, is currently closing down its stores in order to reduce the rental costs for supermarkets and specific stores that have been suffering consecutive years of sales declines.

Shinsegae needs to increase the number of its fulfilment centres in the country in order to increase its sales volume. It has already secured KRW 3.5 trillion (USD 2.96 billion) by selling real estate in Seoul, and it plans to reinvest the funds in eBay Korea and SSG.com. Shinsegae is also preparing for the initial public offering of SSG.com.

Major changes at Korean retail giants 

What: The platform is betting that new womenswear essentials label There Was One (launched with New Guards Group) will capture anti-hype shoppers looking for sustainable wardrobe staples.

Why it is important: While the pandemic helped Farfetch cut back on the discounting and customer acquisition costs that have dogged its bottom line, it is still searching for ways to increase its margins and help convince investors that buying New Guards Group in August 2019 made strategic sense in a competitive luxury retail market.

The range offers minimalist closet staples for women priced under USD 2,000 with a sustainable angle, including a USD 95 organic cotton T-shirt and a USD 1,400 leather biker jacket made in a tannery certified by non-profit Leather Working Group for environmental best practices.

There Was One will be exclusively sold on Farfetch.com. To develop the line, Farfetch tapped the design and production capabilities of the New Guards Group, the firm behind hype-defining brands like Off-White and Palm Angels.

Farfetch’s chief brand officer Holli Rogers said the line was informed by consumer shopping data that showed that since the start of the pandemic, customers have been “investing in pieces that would last them possibly a lifetime” and preferring items made with some kind of sustainable element.

The label will be discoverable on Farfetch.com alongside the marketplace’s luxury offering and within its “Conscious Edit” of sustainable fashion. (Rogers said sales of Farfetch’s “conscious” pieces grew more than three times faster than the average item in 2020.)

Farfetch launches womenswear private label

What: Home to the world’s rarest sneakers, The Edit LDN arrives at Harrods in Men’s Shoes on the Second Floor.

Why it is important: Harrods enters the sneakers resale business with The Edit LDN. The online consignment store is a trusted authority on all things sneakers. Working to a drop schedule, the new boutique – the first of its kind – will release cult footwear and collectables on selected dates, in-store only.

The Edit LDN arrives at Harrods

What: After splitting off the brand’s e-commerce business into a separate entity earlier this year, public offering could value the company at USD 6 billion and take place in first half of 2022, people familiar with the matter said. It was last valued at $2 billion in March.

Why it is important: The IPO plan underscores the revived fortunes Saks is enjoying, thanks to surging online sales. The company has said the online unit’s gross merchandise value, a measure of sales, increased 82% from the second quarter in 2019 to the same period this year.

An IPO would be the second phase of a deal struck earlier this year that separated the e-commerce business from Saks’ bricks-and-mortar retail operations. The move, meant to help fuel the digital unit’s growth. Meeting with bankers is typically one of the first steps toward a listing, though there are no guarantees Saks will move forward with one or receive such a valuation. Market conditions and other unpredictable factors heavily influence IPO plans.

The separation from bricks-and-mortar retail operations, which is purely financial, provides the company with additional capital to invest in the digital unit. From customers’ perspective, little has changed: The Saks brand name remains on both the stores and website, and shoppers can buy online and make returns in stores as usual. Behind the scenes, the online business oversees marketing and merchandising for both channels, and the stores receive affiliate fees in recognition of the online sales and other benefits a physical presence can drive.

Saks e-commerce prepares IPO

What: In early 2022, Adidas' resale program "Choose to Give Back" will be rolled out across the United States.

Why it is important: Basically acting as a loyalty programme, the new resale project will allow customers to ship their items for free through Adidas’ Creators Club loyalty app and, depending on the product type and condition, receive loyalty points and vouchers in return.

Partnering with secondhand platform ThredUp, Adidas will accept clothes, shoes and accessories from any brand to be resold, donated or re-used. Through the Adidas’ Creators Club app, customers can generate a prepaid label and snag a ThredUp Clean Out Kit to send back shoes, clothing and accessories — regardless of condition or whether it’s Adidas-branded.

Products in good condition will be resold through ThredUp, while the rest will go through the reseller’s network of textile reuse partners. Wider rollout of the programme will begin early next year.

Under the Hood of Adidas’ Resale Launch

What: Ikea makes a major acquisition in the city centre of a country which has been, and is going through, turbulences related to Brexit.

Why it is important: The amount of the acquisition shows Ikea’s belief in the relevance and permanence of brick & mortar business, even though they are also advancing on the digital front. It will also be the first Ikea store of this size in an European city centre.

Swedish furniture group Ikea has confirmed the purchase of the former iconic Topshop location in Oxford Circus, in the centre of London (we initially reported the information earlier in September). The acquisition amounts to GBP 378m and Ikea will use a third of the 22,200 sqm space over seven floors, renting the rest to other long-term tenants such as Nike or Vans.

Once the store is open, Ikea will operate a total of 23 stores in the UK.

Ikea buys former Topshop Oxford Circus flagship store

What: 3 examples from the US on how omnichannel capabilities help to drive customers back.

Why it is important: The 3 examples illustrate in a fragment way what is at stake for each large retailer: being a destination, always relevant to the moment and space, and achieving profitability through adequate partnerships.

Kohls realized in 2020 that customers had a dual ambition. On the one hand, they wanted to save time, money and resources during their shopping trip. On the other hand, they were longing for inspiration and discovery during their visits to physical stores. This is the reason why Kohls has upgraded their stores to make sure that each visit is worth the trip, through specific and desirable partnerships such as Sephora, Cole Haan or Tommy Hilfiger.

Nordstrom is aiming at the same result through the astute combination of Nordstrom, Nordstrom Rack and their digital expertise. Half of their sales is now coming from the digital channel. They also look at dedicated partnerships, such as ASOS, Topshop, Miss Selfridges, Warby Parker and others.

On their side, Macy’s is accelerating their Polaris strategy by repositioning the store fleet, enhancing omnichannel experiences, modernizing the supply chain and inking partnerships with Toys R Us, Urban Modesty or a selection of inclusive brands. Bloomie’s, their new and smaller format, is also part of this approach.

How department stores are bringing customers back

What: A mall management company launches a digital marketplace which will consolidate all brands represented in all its 7 centres.

Why it is important: After smaller malls (such as the Wisconsin “The Corner of Brookfield” mall), larger operators also concentrate the offer on a digital one stop, hoping to maximize product exposure but also mall productivity by offering the adequate online and offline bridges.

Sunway Malls (Malaysia) is launching an e-commerce marketplace, Sunway EMall, proposing to tenants in its seven centres to join. It will cover all the current mall categories, and 200+ retailers are expected to join the platform.

The virtual mall will also offer e-vouchers that can be redeemed in the physical malls.

Sunway Malls brings tenants of seven malls onto a single marketplace 

What: Lotte Group's retail unit, Lotte Shopping, has been selected as a de-facto strategic investor to acquire Hanssem, the country's largest furniture company, along with local private equity fund (PEF) IMM PE.

Why it is important: The retailer expects to create synergy with its department stores and Hanssem at a time when expenses for home improvement, home goods and furniture rose in the midst of the pandemic.

"Taking over Hanssem will help Lotte allocate space for furniture stores in our retail channels as well as create synergy at the group level in collaboration with Hi-Mart and Lotte Engineering and Construction," a Lotte Shopping official said.

Lotte to acquire Hanssem with IMM PE

What: With consumer experiences increasingly playing an important part in the retail landscape, Situ Live arrives at the Westfield London shopping centre this autumn.

Why it is important: Billed as “revolutionary” in retail and an “exciting and immersive consumer experience", it combines product discovery, innovation, theatre and demonstrations, “to reimagine the traditional commercial retail model”.

Spanning 7,500 sq ft, the debut venue “will be packed with products designed to inspire your everyday, across a series of specially curated, themed theatres, brought to life by live storytelling”. Visitors can explore the latest devices from a selection of cutting-edge brands in action and try them before they buy.

Westfield London to debut "revolutionary" Situ Live retail concept