What: Resale presents a lucrative sales opportunity for retailers.

Why it is important: Adding second-hand items to a retailer’s offer opens a new revenue opportunity and can drive traffic to stores and e-commerce sites.

Buying secondhand is increasingly becoming more popular as consumers feel the impact of inflation and also make an effort to be more sustainable.

It is estimated that the resale market could hit $300 billion by 2031 and is growing at three times the rate of the primary market. Additionally, the luxury secondhand market is growing 11 times faster than traditional retail.

Incorporating resale into a retailer’s offer not only opens a new revenue opportunity but also helps drive traffic to stores and e-commerce sites as well as sales of new items across categories and price points.

Adding resale is complex with different selling approaches, a complicated sourcing process, and difficulty with pricing. However, given the buzz around resale from customers and industry experts, retailers should highly contemplate adding resale to their offer.

Resale dominates National Retail Federation’s ‘Big Show’ 

What: Stockmann’s shareholder’s club is growing with a Swiss investor expert in retail.

Why it is important: The shareholders’ views are in the continuation of the efforts made by Stockmann’s management in elevating the brand and the store.

JC Switzerland holding, which is behind Peek & Cloppenburg and its recent acquisition of Magasin du Nord, took a 5% share in Stockmann in January 2023 and partnered with The Art Society, meaning that both companies will hold 15% of the voting shares. For the CEO David Barst, Stockmann enjoys quite a unique position, being virtually without competition in Helsinki, and with a high level of recognition from local customers.

For Barst, Stockmann should explore a more exclusive positioning, but not being only for rich tourists.

Stockmann’s new co-owner shares his views on his recent investment 

What: Shinsegae International has appointed William Kim as its new CEO. He will also continue as the chief digital intelligence officer of the Shinsegae Department Store division to strengthen its digital strategy.

Why it is important: Shinsegae International will continue to strengthen its core competitiveness through the introduction and operation of innovative new brands. With the appointment of Kim, the company plans to spearhead further growth through mergers and acquisitions and international expansion.

Prior to joining Shinsegae International, Kim served as the CEO of Rapha, a British cycling apparel brand. He expanded Rapha's global digital platform and developed its community concept.

Before leading Rapha, he spent three years in Samsung Electronics' mobile division as the executive vice president of the Global Direct to Consumer Center. He was responsible for managing the company's official website, external third-party digital platforms and global retail stores.

In 2012, Kim led British fashion retailer All Saints, which he turned into an iconic global innovative fashion brand. He renewed the firm's business model, focusing on digitalization and globalization to help establish a foundation of sustainable profitability.

His extensive experience in digital management and consumer experience derives from more than 29 years of experience working for brands such as Burberry and Gucci.

Shinsegae International names Kim as new CEO 

What: The first batch of US retailers’ quarterly results announcements show that 2022 is ending with mixed feelings.

Why it is important: Inflation and customers’ reluctance to spend at home did not seem to be felt by US customers visiting Europe and other countries.

WWD reports in an extensive article that the 2022 Q4 outlook is mixed, as the results from holiday sales were not always in line with expectations, due to a tricky economy and a stressed customer.

There is a decoupling between overall sales and actual margins, as reported by Lululemon, American Eagle Outfitters or Macy’s. Most retailers’ shares went down due to the realization of the situation by investors.

2023 is considered with caution, with the target to regain control over inventories. Macy’s plans to focus on its private labels in order to increase their total share of business (currently 16%), as well as onboarding more brands on its digital platforms, with a limited inventory impact.

Holiday hangover hits retail 

What: Italy’s antitrust agency has fined online fashion retailer YOOX Net-A-Porter (YNAP) 5.25 million euros ($5.69 million) over misleading pricing and its returns policy, dating back 2019-2022.

Why it is important: Reductions on products advertised by online retailers are under close scrutiny.

YNAP said it would appeal against the antitrust agency’s ruling, adding in an emailed comment to Reuters that it had always followed the highest standards of commercial conduct.

Italian watchdog fines YNAP more than $5 million

What: The National Retail Federation’s Big Show saw a common theme, manage inventories and costs conservatively and cautiously and be ready to pounce on whatever shopping trends and hot items emerge.

Why it is important: These forecasts and takeaways can help retailers reach consumers who are becoming tapped out on savings and building up on credit while also shifting towards spending on experiences rather than stuff with the inevitable recession.

The National Retail Federation’s Big Show was packed with more than 35,000 attendees from 75 countries marking a near-record high for the conference. A common theme was discussed between industry experts and economists: manage inventories and costs conservatively and cautiously and be ready to pounce on whatever shopping trends and hot items emerge. They predict that 2023 will be split in two halves for retailers; a tough first half with a rebound in the second half of the year.

With the inevitability of a recession, consumers are shifting towards spending more on experiences while tapping out their savings and building credit. Economists and industry experts said the key to long-term success is to: strengthen engagement with consumers by providing richer experiences that are channel integrated, adopt newer ways to generate additional revenues such as AI, resale, or marketplaces, and be agile and open to change.

In the slowing consumer environment, retailers should focus on their current customers by finding ways to treat them better with a better experience, while also keeping up with the pace of change in the industry and seeking to reach consumers at all touchpoints.

Forecasts and takeaways from NRF’s Big Show

What: Saks Fifth Avenue considers to open a new kind of experience in its premises.

Why it is important: It’s all about the experience, to make sure tourists and customers have a good and very unique reason to come, and it is all the more telling that this project would eat retail space.

Hudson Bay company, the owner of SFA, has announced it would bid the state in order to convert the top three floors of the store into a casino. There are currently three available licences to be attributed, and the project would span over 20,000 sqm.

For now, the considered floors are dedicated to sales items and the SaksWorks flexible office, now closed. Competition in the city for the said licences is tough, as Hudson Yards and other malls would also use them as a way to attract more tourists.

Saks Fifth Avenue plans to open a casino on the top of its NYC flagship store 

What: LVMH is cautiously confident heading into 2023 as signs of recovery in China pick up following the decision to reverse COVID-19 restrictions.

Why it is important: Despite the uncertain economy, LVMH is confident in its ability to continue to grow following its success in 2022.

Following a year of record results in 2022, LVMH is confident it can see the same success in 2023. Especially with COVID-19 restrictions loosening in China, the conglomerate is optimistic about the Chinese market.

Shares in LVMH have risen 15% since the beginning of the year as markets predict that China’s reopening will support the ongoing strength of luxury sales. The company became the first in Europe with a market capitalization of more than 400 billion euros.

In 2022, LVMH posted revenues of 79.2 billion euros, up 23% year-on-year; its net profit rose 17% to 14.1 billion euros, and profit from recurring operations was up 23% to 21.1 billion euros.

LVMH confident on Chinese recovery

What: Grand Central, a shopping destination in Birmingham, is losing 200,000 sq feet of retail space as commercial property giant, Hammerson plans to transform a former department store into offices.

Why it is important: The plans from Hammerson are a sign of how property giants are branching out from retail and repurposing empty retail space.

The commercial property giant, Hammerson, has announced plans to transform the former John Lewis department store into offices at Grand Central in Birmingham. This move further shows that property giants are branching out from retail and repurposing empty retail space.

The plan has accelerated with the large number of department stores closing across the UK, which was happening before the pandemic.

More retail space lost as Hammerson reveals Grand Central plans

What: Galeria is planning to close 70% of its stores and finding buyers for them is not an easy feat.

Why it is important: The German chain has been in trouble for years and benefitted from the German state support twice during the pandemic. The pressure to salvage jobs is high, which makes it an explosive cocktail.

Galeria Kardstadt Kaufhof is planning to sell 90 of its 129 stores in Germany, due to a very difficult financial situation. However, given the fact that the stores in question are in small towns and rather larges, buyers are not interested.

One entrepreneur, the CEO of multi-brand chain Aachener, founded a year ago and which operates now 6 stores, has expressed his interest in a non-specified number of stores.

Retail Detail mentions that Inno, the Belgian department store chain which belongs to Galeria, is not impacted by the issues of the mother company in Germany, and even closed 2022 posting a profit.

German group Galeria has trouble finding buyers for its closed stores 

What: Beijing’s policy shift regarding Covid-19 will give the luxury sector a boost in 2023 but a surge in infections and slow economic growth could weaken the recovery after the uplift from the Chinese New Year.

Why it is important: Chinese consumers remain fundamental to the industry’s global growth and the luxury sector’s much-needed comeback in China is finally close as the country lowers its zero-Covid stance.

As Beijing’s Covid-19 policy shifts, analysts and investors are confident in predicting a fast recovery for sales in the luxury market than they did a few months ago, however, the outlook remains highly volatile in the short term. With restrictions lessening, Chinese consumers are increasing their spending domestically. It is estimated that sales in mainland China will drive between 25 to 27% of the personal luxury goods market, compared to 11% before the pandemic. Additionally, as much as 40% of personal luxury goods sales will be made by Chinese consumers.

The uncertainty and timidness regarding Covid-19 will make the first quarter the most difficult. Resuming life as normal won’t necessarily equate to increased luxury sales, as more consumers intend on spending on experiences rather than luxury goods. The wealthy will lead China’s rebound, making strong connections with current customers a top priority for brands. Some brands have already implemented strategies to reach these consumers, such as Chanel and Dior taking over the third floor of department store SKP to open VIP salons.

Analysts and experts predict that a spending recovery should come to fruition by the end of the second quarter. With this in consideration, it’s forecasted that China will reclaim its status as the top luxury spender by nationality and luxury spending among Chinese consumers will increase to about 30% for 2023.

However, determining the country’s luxury sector recovery will be influenced by how the travel market emerges. Domestic travel is beginning to pick up while international travel will take longer to rebound. However domestic travel will remain important for luxury brands as a growing number of Chinese consumers will continue to shop locally as a result of significant investments in retail and marketing across China by luxury brands.

Luxury set for a bumpy ride in China 

What: A report from the World Travel and Tourism Council says Beijing could become more powerful than Paris in terms of tourism.

Why it is important:The tourism sector in Paris’ GDP is the highest in the world so far, representing USD 35.65 billion of direct contribution. But by 2032, Beijing could steal the show by posting economic benefits estimated at USD 77.28 billion.

The Chinese capital is already in the starting blocks to make tourism one of its economic engines. China's domestic tourism sector has seen phenomenal growth over the past decade as the country has invested in new hotels, transport infrastructure and new tourist destinations. By 2032, Shanghai should also be the second largest tourist power, with USD 70.88 billion in economic benefits. The largest city in southern China, Guangzhou, is also expected to ramp up, generating USD 34.94 billion.

Here are the top 10 tourism powerhouses in the world in 2022:

1. Paris - $35.65 billion
2. Beijing - $32.62 billion
3. Orlando - $31.1 billion
4. Shanghai - 29, $69 billion
5. Las Vegas - $22.99 billion
6. New York - $21.09 billion
7. Tokyo - $17.97 billion
8. Mexico City - $16.76 billion
9. London - $14.92 billion
10. Guangzhou - $13.15 billion

Beijing to become the biggest tourist power in the world

What: Buy with Prime is now a payment option.

hy it is important:  Amazon provides great customer perks, but at a significant cost as they end up siphoning data from third party sites.

Amazon launched the Buy with Prime programme in April 2022, giving customers access to fast, free shipping, seamless checkout experience and easy returns, including to stores beyond Amazon.com. This allows third party merchants to tap the Prime members and offer them benefits that they are not able to provide by themselves.

According to Amazon, such an offer increases conversion by 25% on average and proved quite popular among merchants. This is the reason why Amazon has decided to extent this option to all eligible US-based merchants, in addition to enable them to display customer reviews from Amazon.

Amazon extends its “buy with Prime” option to more US-based merchants 

What: Rent the Runway will be available on Amazon.

Why it is important: The designer rental specialist said it is launching an Amazon Fashion storefront that will sell “pre-loved” looks and exclusive new items from its Design Collective.

The resale looks from the company’s rental business will include hundreds of styles from more than 35 brands.

Rent the Runway’s cofounder and chief executive officer, described the strategic relationship as a boarder win for resale.

This isn’t Amazon’s first step into second-hand — its Shopbob business has The Pre-loved Edit and the e-commerce giant linked with What Goes Around Comes Around last year — but the collaboration with Rent the Runway extends the push significantly.

Rent the Runway has been pushing to build its business under the harsh glare of Wall Street following its IPO in 2021. And Amazon has been looking to build in fashion and is still looking for ways to crack the designer code. Resale seems to be a growing part of the e-commerce giant’s solution.

Adding Amazon to the mix with resale and the Design Collective broadens the pool of potential buyers significantly; it’s a collaboration that brings something to both sides.

Rent the Runway links with Amazon

What: Nordstrom has launched a Stylist Ambassador program, enlisting store stylists from its top 20 markets.

Why it is important: Nordstrom is investing in styling, as customers engaging with a stylist spend seven times more and report higher levels of satisfaction.

After ending its apparel subscription service, Trunk Club, Nordstrom stated they knew how much stylists can influence a sale and would be expanding its styling services to include more virtual touchpoints.

The store stylists, selected from Nordstroms top twenty markets, will act as influencers, helping to “bring the Nordstrom experience to life” through social media, events, and other channels.

Nordstrom is extending its brand value with an approach of personalization and localization as shoppers may feel empowered to deepen their relationship with the company.  Customers will now also have access to Nordstrom when, how, and where they want.

Nordstrom enlists company stylists for new fashion ambassador program

What: MacArthurGlen is ramping up for the opening of its latest luxury outlet mall outpost in France and has slated the long-awaited launch of its Paris-Giverny centre for April.

Why it is important: The newest location will feature 100 stores and over 215,200 square feet of retail space. It marks the 27th centre for the group and the fourth in France.

MacArthurGlen is targeting a mix of luxury and designer brands and says that nearly 80% of the space is now committed, though it would not disclose any names that have signed on.

Bringing in the high-end players is about striking the right balance of brand mix and creating a destination with added amenities that can attract and retain shoppers.

Paris-Giverny expects to draw from the 627,000 visitors that visit Monet’s gardens every year and is working with other nearby tourist destinations such as Versailles to create packages. The company has also rolled out an extensive global marketing plan to create buzz among tourists before they’ve even set foot on French soil.

The discount nature of the outlets could be a benefit as inflation and other economic headwinds hit consumers’ wallets. Co-CEO said internal research shows that about 80% of French consumers are likely to shop outlets in the future based on some cost-of-living constraints.

The centre will have 10 restaurants and cafes with a focus on French food and cuisine from the surrounding region of Normandy, the upscale atmosphere is key for brands signing on to the centre, a Champagne bar, a living wall, flexible spaces that can be turned over to influencers and a space for local artisans.

MacArthurGlen reveals Paris-Giverny plans for April opening

What: Walmart launched a dedicated e-commerce site that is tailored to small and medium businesses with the intention of simplifying business-related purchases.

Why it is important: As America’s number one retailer, Walmart is continuing to evolve its shopping experience to cater to its customers’ needs and address the challenges businesses face.

Walmart is continuing to expand its B2B initiatives with Walmart Business, a dedicated e-commerce site that is catered to small and medium business customers. Customers have the opportunity to upgrade to a Walmart Business+ membership for $98 a year which gives them access to no minimum shipping, free pickup and delivery from stores, as well as rewards and savings.

The site focuses on products that are necessities for small business owners like office supplies, snacks, and restroom supplies among many other products. Additionally, Walmart Business is efficient and user-friendly, allowing customers to share payment information and order histories across teams as well as having items organized in a way that tailors to organizations.

The new site follows many other B2B initiatives Walmart has made in the past year. The company began selling its omnichannel capabilities to other businesses in 2021, has partnered with Popable, and also introduced a white-label delivery service.

Walmart launches dedicated e-commerce site for businesses

What: Eve & Ranshaw is closing its doors after 242 years of trading

Why it is important: After 242 years in business, the store was unable to recover from the pandemic and rising costs of operating.

Eve & Ranshaw has been in the same location since 1781 and will be closing its doors after 242 years of business. The independent department store has struggled to bounce back from the pandemic and increase in costs. The store will close on March 4th with its online store closing on January 30th.

One of UK’s oldest department stores Eve & Ranshaw to cease trading

What: CEO Geoffroy van Raemdonck and CFO Katie Anderson addressed investors at the ICR Conference in Orlando.

Why it is important: NMG’s positive report on the state of its business comes despite other industry reports that the luxury sector is slowing in some cases amid the uncertain outlook on the economy.

“We have free cash flow that we can reinvest in our business, as well as generate more cash on a run rate basis,” added Katie Anderson, NMG’s executive vice president and chief financial officer. “We also make our profit from our core assets. A lot of companies in our industry make money from credit cards or off-price. That’s not us. We are profitable across our channels…We also have over a billion dollars of liquidity, which gives us a ton of flexibility.

Van Raemdonck did note that NMG, in its fiscal year which concluded July 31, 2022, generated $5 billion in gross merchandise value sales, an 11% earnings before interest, taxes, depreciation, and amortization margin rate, and $495 million in adjusted EBITDA. For the first quarter of the current fiscal year, NMG experienced a 6% comparable gain in GMV sales. Gross merchandise value refers to all the merchandise sold through NMG stores and websites, owned, on commission and through consignment. On a comparable basis, NMG was up 33% in sales, the company reported last October.

Van Raemdonck emphasized that profitability is sustained through successful efforts to generate greater full price selling; sales associates that build relationships with customers; operating three retail channels — stores, online and remote selling, and curating “with the right product assortment. We spend time curating brands, and ultimately we buy with our own money,” meaning wholesaling rather through leasing arrangements.

Van Raemdonck said NMG’s omni business model is “so tied to profitability,” adding, “If you take a customer who shops in a single channel online, they spend 1X. If we’re able to migrate them across channels, they spend 5X. And if we’re able to get them in a relationship with a sales associate, who curates assortments for them and experiences, they spend 12X.”

Furthering the case for profitability, van Raemdonck said NMG operates a “very clean, profitable and tight network of stores located where customers and high net worth individuals live. It’s 36 locations of Neiman Marcus and one for Bergdorf Goodman, and we exited off price, but for five liquidation stores. We are investing in our stores and we are investing $200 million of strategic [capital expenditure], half of which is funded by landlords, and that will touch half of our stores — our top 10 stores — and a third of the total fleet.

Neiman Marcus execs make the case for profitability

What: Amazon launched a subscription plan that provides unlimited generic prescription drugs for USD 5 a month, an offer aimed at its Prime customers.

Why it is important: The initiative demonstrates Amazon's desire to continue to develop its health offer, whether in terms of medicines or care. In July 2022, the group notably announced the acquisition of the private care network One Medical, for USD 3.9 billion.

The service, dubbed RxPass is one of the most advanced subscription plan on the market for low-cost drugs, along with Walmarts’ drug list service, which provides one month's treatment for a single generic drug for USD 4. RxPass offers a suite of generic medications that more than 150 million Americans occasionally or regularly take. RxPass does not require the intervention of a health insurer.

Amazon’s new drugs subscription plan

What: A variety of solutions for e-commerce, supply chain, store operations, and more were discussed at the NRF Big Show.

Why it is important: The latest technologies can present solutions relevant to omnichannel retailing in post-pandemic times.

At the NRF Big Show, retailers had the opportunity to connect with vendors who presented solutions that can tackle issues with supply chain and logistics, workforce shortages, and e-commerce.

Avery Dennison hosted a booth which demonstrated how its digital solutions can unlock the value of data-driven insights. Attendees were able to learn about a product’s end-to-end journey, showcasing the benefits of real-time insights which can help businesses make informed decisions to improve their supply chain accuracy and efficiency, reduce waste, enable circularity and also meet net-zero targets.

StoreForce presented its integrated retail operations solution which helps retailers optimize labor expenditures and retain employees. The company also offers solutions that are specific to retail workforce management and employee engagement.

Zipline also provides workforce management solutions with its platform that allows retail workers to manage their schedules in real-time, which can help brands better engage and retain employees.

Retail Technologies for SMBs 

What: John Lewis opens popups dedicated to heavy promotions just outside its stores, in front of their entrances.

Why it is important:  If customers do not enter your stores, capture them where they are!

John Lewis will hold an electronics sales popup event in Centre:mk mall, just in front of the store entrance. The mall hall will be filled with appliances brands, and manned with staff from John Lewis.

This is the second time that such an initiative is made by John Lewis, and according to the company, was extremely popular the first time. This is a way for John Lewis to capture additional traffic and attract bargain hunters without damaging too much the footfall quality in the store itself.

John Lewis to hold pop-ups outside its stores 

What: The CEO of Saks.com gives his insight on how the retailer has seen success and growth since 2019.

Why it is important: Saks.com is the largest luxury e-commerce business in the US and has seen significant growth in the post-pandemic era with its current strategy.

Although Saks.com laid off 3.5% of its workforce, the CEO states the cutbacks aren’t a reflection of the state of business as they reorganize. The online retailer is currently the largest e-commerce business in the US, with the business up 120% in comparison to 2019.

The layoffs were part of a reorganization that created separate teams for technology and operations to eliminate redundancies, accelerate growth and be more efficient. In the reorganization, they also named a new interim chief technology officer and chief operating officer

Approaching $2 billion in annual sales, the retailer is seeing success with the split of Saks.com and Saks Fifth Avenue.  They grew their customer count by 60%, picked up 2.7 million customers online, and omnichannel customers were up 43% since 2019.

The CEO states that with this change, they are able market more efficiently and specifically, invest in technology to personalize more effectively, and use data to expand assortment. Additionally, they have started to implement a marketplace model which lets them give the right level of assortment to customers.

Marc Metrick on growth and reorganization at Saks.com

What: Falabella Retail announced its entry into the car rental service with Arval Relsa.

Why it is important: Falabella is finding new ways to reach its customers through experiences and services that can simplify their lives.

Arval Relsa and Falabella Retail have partnered to create a rental car service, Falabella Renting. The rental car service offers medium to long-term rentals that are paid for monthly. The payment includes insurance, maintenance services, and roadside assistance, among others, so customers only have to worry about paying for gasoline and the TAG.

Falabella rental hopes to expand its operations across other Latin America countries where both Arval Relsa and Falabella Retail are present.

Falabella Retail expands its range of businesses in Chile