What: Walmart is teaming up with Adobe to offer retail as a service proposals to smaller US Retailers

Why it is important:  The retailer is closing the gap with Amazon, for which AWS is a key component of its profitability, and slowly moves away from selling goods.

Walmart has made a partnership with Adobe to propose a bundle of services to US SMEs, allowing them to use Walmart’s cloud-based services to access Walmart Marketplace. This will entitle them to access services such as 2-day shipping, online and in-store fulillment, as well as pickup capabilities.

Walmart To Offer Technologies and Capabilities 

What: Nordstrom said it expects revenue to rise over 35% in fiscal 2021, compared with more than 25% forecast previously.

Why it is important: Net sales increased 101% from the same period in fiscal 2020 and decreased 6% from the same period in fiscal 2019. Revenue rose to USD 3.66 billion in the second quarter, from USD 1.86 billion a year earlier.

For the Nordstrom brand, net sales increased 127% compared with the same period in fiscal 2020, and decreased 5% compared with the same period in fiscal 2019. Digital sales increased 30% compared with the same period in fiscal 2020 and increased 24% compared with the same period in fiscal 2019.

Gross profit, as a percentage of net sales, was flat compared with the same period in fiscal 2019, as lower markdowns resulting from healthy inventory sell-through offset deleverage on lower net sales. Ending inventory increased 13% compared with the same period in fiscal 2019, versus a 6% decrease in sales.

Second quarter net income of USD 80 million increased from net loss of USD 255 million during the same period in fiscal 2020, which included after-tax COVID-19 related charges of USD 14 million.

The Company reported net earnings of USD 80 million, with earnings before interest and taxes (“EBIT”) of USD 151 million. EBIT was USD 65 million lower than the second quarter of fiscal 2019 due to freight and labor cost pressures and lower sales volume, partially offset by continued benefits from resetting the cost structure in 2020.

Nordstrom second quarter 2021 earnings

Nordstrom to Report Second Quarter 2021 Financial Results on August 24 

What: Chile’s economy beat expectations in the second quarter as billions of dollars in fiscal stimulus triggered a retail sales frenzy during the pandemic.

Why it is important: Chile has spent more to offset the economic impact of the pandemic than any other key emerging-market country, while a series of early pension withdrawals has put almost USD 50 billion in people’s pockets.

That cash has fueled a consumption boom, with retail sales posting eye-popping year-on-year gains of 66% in June and 72% in May. The economy expanded 18.1% from a year prior, the central bank reported.

The stimulus also helped to offset the economic blow of strict lockdowns and longer nightly curfews implemented by the government to battle a record surge in virus cases during the second quarter. Going forward, growth is expected to speed up as the vaccination campaign drives down infections while the economy slowly reopens.

The South American country will see GDP expand by as much as 9.5% this year, according to the central bank. On top of that, lawmakers are debating new pension drawdowns which may add even more impetus to economic growth.

Chile Growth Outpaces Forecasts, Buoyed by Stimulus Spending 

What: The contemporary art gallery is located on the third floor and is also offering experiences such as visits to artists’ studios.

Why it is important: Cultural products are making a comeback in department stores. Newly reopened La Samaritaine also partners with a gallery – Galerie Perrotin.

With a strong emphasis on the process of art acquisition, Halcyon Gallery offers close guidance in building collections for both residential and commercial properties. And it doesn’t stop with a sale; working with the utmost discretion, their expert team will be on-hand to advise on technical aspects such as hanging artwork, lighting and sculpture placement.

It’s not just about what’s on the walls. From visits to artists’ studios and exclusive exhibition previews, to the incredible experience of commissioning bespoke pieces, Halcyon Gallery believes in the life-enhancing power of art.

Halcyon Gallery at Harrods

What: The collection will be sold by trunk show in Bloomingdale’s and Neiman Marcus.

Why it is important: Bridal market is booming as large swaths of the world emerge from pandemic lockdowns, and travel restrictions ease, allowing weddings postponed over the past year to go ahead.

Dubbed “Love,” the capsule is to be sold via trunk shows in the U.S. starting 9 September at Bloomingdale’s in New York, followed by Capitol in Charlotte (N.C.) and Brentwood (California), and Neiman Marcus in Dallas.

The collection is also scheduled to head to Europe, the Middle East and Asia in the coming months, although it’s unknown if Vali will partner with other department stores. Dresses start at USD 9,000 and run up to USD 29,000, with separates starting at USD 3,000.

Valli opted for the small scale of trunk shows to sell the Love collection, rather than wholesale distribution. Each trunk show runs for three or four days. He said he plans to do one bridal collection a year, allowing sufficient time to perfect the silhouettes, fabrics and embellishments.

Giambattista Valli partners with US department stores

What: The John Lewis Partnership has teamed up with Nutmeg, the UK’s largest digital wealth manager, to offer investment products to customers.

Why it is important: The retailer claimed that the three new investment products aim to help people who otherwise would not consider investing. John Lewis wants to become part of their customers’ lives in new ways outside of the department store.

Three new products will be added to John Lewis’ financial services portfolio, which also includes home insurance and retail credit offers. The new products include a junior ISA, stocks and shares ISA, and a general investment account. These products all invest in funds with high environmental, social and governance standards to enable customers’ money to be focused on businesses that score highly in the areas of carbon emissions, climate change, renewable energy, social impact and ethical practices.

John Lewis opens the door to easy-to-use investing as customers look to the future

John Lewis teams up with Nutmeg to launch investment products

What: The CEO of Simon Property Group held court on a conference call with analysts after turning in stronger second-quarter results.

Why is it important: In the company’s U.S. malls and premium outlets, occupancy stood at 91.8% at the end of the quarter, down from 94.4% two years earlier.

“We continue to see demand for space across our portfolio from healthy local, regional and national tenants, entrepreneurs, restaurateurs — and mixed-use demand [is] ever so increasing day by day,” Simon said. “Physical retail is here to stay. And people really like to shop in the physical world.”

“We still have a hole to dig out of because of the bankruptcies that we had to confront with the pandemic,” he said. “But I’m very pleased with the activity, the mojo that we have in leasing, the work that our personnel are doing there, the creativity. It’s pretty encouraging.”

So far this year, the company has signed leases for 3 million more square feet of space — more than 800 more deals compared with the first six months of 2019. And retail sales for June were on par with June 2019 and up 5% from May.

For the three months ended June 30, the group’s net income increased to USD 617.3 million from USD 254.2 million a year earlier. Funds from operations — the standard yardstick for real estate firms — rose to USD 1.2 billion from USD 746.5 million a year earlier.

Mall Giant David Simon ‘Physical Retail Is Here to Stay’ 

What: Michael Murray is set to replace Ashley from May 2022.

Why it is important: Ashley, who still owns 64% of the group, will remain on its board as an executive director, with Murray taking over day-to-day operations.

Frasers Group, the U.K retail group behind Sports Direct, Flannels and House of Fraser, has confirmed media speculation that British retail tycoon Mike Ashley plans to step down from his role as the group’s chief executive officer and hand over the reins to his future son-in-law, Michael Murray, by May 2022.

Murray, aged 31 and engaged to Ashley’s daughter Anna, has been working as the group’s head of elevation and has been tasked with creating a more upmarket image for the company.

Frasers Group Confirms Plans for Mike Ashley to Step Down as CEO 

Ashley’s succession plan at Frasers might be more than window dressing 

What: The retailer, seeing more shoppers return to stores, turned profitable in its second quarter amid strong sales gains, motivating the company to raise its outlook for the year.

Why it is important: The company raised its guidance for this year. Sales are now seen reaching between USD 23.55 billion to USD 23.95 billion, compared to previous guidance of USD 21.73 billion to USD 22.23 billion.

Macy’s reported net income of USD 345 million for the quarter ended 31 July, compared to a loss of USD 431 million in the year-ago. Operating income was USD 597 million versus an operating loss of USD 631 million in the 2020 quarter. Sales rose to USD 5.65 billion last quarter, versus USD 3.56 billion in the year-ago period. Comparable sales were up 62.2%.

To support the momentum for the back half of 2021 and into 2022, Macy’s has begun selling the Toys “R” Us assortment online and will roll out Toys “R” Us to more than 400 Macy stores next year. The partnership was made with WHP Global, a New York based firm that acquires consumer brands and has a portfolio than includes Anne Klein, Joseph About, and Lotto, as well as a controlling interest in Toys “R” Us. The partnership, said Nata Dvir, Macy’s chief merchandising officer, “allows Macy’s to significantly expand our footprint in that category, while creating more occasions for customers to shop with us across their lifestyles.”

Pandemic impacted categories, including denim, luggage, dresses and other occasion-based apparel, came back strong. Categories that were solid throughout the pandemic, such as fragrance, fine jewelry and textiles, continued to perform well.

Digital sales declined 6% versus second quarter 2020 and grew 45% versus the second quarter of 2019. Digital penetration was 32% of net sales, a 22-percentage point decline from the second quarter of 2020, but a 10-percentage point improvement over second quarter 2019. The decline in digital sales compared to the prior year driven by shift of omnichannel customers to stores, which are now fully open.

The company brought about 5 million new customers into the Macy’s brand, a 30% increase compared to second quarter 2019.

Macy’s Inc. Raises Outlook After Strong Quarter

Macy's Reports Second Quarter 2021 Results

What:  Hudson's Bay department store will separate its store fleet and e-commerce business into two separate businesses, accelerating its digital-first transformation.

Why it is important:  Just as Saks Fifth Avenue and Saks Off Fifth, Hudson’s Bay has decided to also split the physical and online businesses.

The two entities of the business with still work collaboratively in certain areas, but it seems that HBC’s retailers see value in splitting their businesses. Although the motivation to split the operations is unknown, it could be that the separate entities could be more attractive to varying levels of funding, which has already been seen for Saks Fifth Avenue and Saks Off Fifth.

Hudson's Bay to split its e-commerce, store operations 

What: The campaign touches every marketing channel in order to broadcast far and wide its offerings — a spread of 40 new luxury and emerging brands — and services — its digital style advisors.

Why it is important: The department store intends to convince shoppers it is still a preeminent luxury retailer.

Nearly one year after Neiman Marcus emerged from bankruptcy, the American luxury department store is “reintroducing” itself to customers — hoping to reach them in their homes, online and perhaps most importantly, in stores.

The retailer’s homepage will be redesigned to encourage shoppers to discover its new brands; while email marketing will help double down on the messaging while encouraging purchases. Neiman Marcus will also run ads on streaming services like NBCU and YouTube.

In addition to its new look, feel and commercial tone — and perhaps as a means to retrain consumers’ eyes in its direction — Neiman Marcus will resurrect its editorial publication, The Book, a 95-year-old magazine that will include 200 pages of images and interviews with designers like Gabriella Hearst and Virgil Abloh.

Neiman Marcus ‘Reintroduces’ Itself to Customers In New Campaign 

Neiman Marcus press release

What: The Australian department store saw 282% growth in adjusted earnings for 2021, with double-digit second-half sales growth.

Why it is important: Gains were fueled by reductions in costs, markdowns and debt, improved inventory and government wage subsidies and rent relief. In line with the company’s strategy to exit unproductive space, trading space was further reduced by 6.3% over the year.

Sales grew 2.3% to USD 1.51 billion in the 52 weeks to June 27 2021, with like-for-like sales up 0.9% over the period and a 17.1% jump in second-half sales — after falling 17% in the same period last year. Online sales grew by 24.4% , contributing 17.3% to total sales for the year.

Adjusted CRG operating profits surged 158.3% to USD 111.7 million, on sales of USD 756.8 million, up 13.5% over the period, with a 15.3% rise in like-for-like sales and second-half sales growth of 39.5%.

Sales in the retailer’s Elizabeth Street, Sydney flagship grew by 16.6% during the year, in spite of lower footfall in the city’s central business district due to COVID-19 disruptions.

David Jones’ Profit Surges 

What: Department stores and big supermarkets start requiring customers to scan QR codes to shop in an effort to stop the spread of COVID-19.

Why is it important: Stores that are bigger than 3,000 square meters are required to adopt a QR entry log system.

The move takes effect in areas across the country where the current social distancing is Level 3 or above. Level 4 social distancing rules are in place in Seoul and the surrounding areas while the rest of the country excluding 36 cities and counties are under Level 3.

Business including restaurants and clubs were already required to scan QR codes or keep handwritten logs to help authorities track down clusters from the early stages of the pandemic last year.

Korean department stores start QR code scans

What: The German department store is changing its name to just Galeria.

Why it is important: The name change is part of a new strategy and investments.

The German retailer wants to recover from the coronavirus pandemic with a new strategic repositioning, starting in the autumn with the "Galeria 2.0" concept. This includes a new name and a new logo. Currently, the stores are sometimes called Kaufhof and sometimes Karstadt, as the group came about when the two department store chains merged.

The new logo will be used officially for the first time on 27 October, then gradually displayed in all locations.

Over the next three to four years, the retailer plans to invest EUR 600 million: two-thirds of this will be spent on modernizing the 131 department stores; the remainder will be spent on expanding the e-commerce offer, digitization and logistics.

The retail also wants to divide its stores into three categories in future: 'World Store', 'Regional Magnet' and 'Local Forum'.

Galeria Karstadt Kaufhof will become 'Galeria' 

What: The partnership marks the beauty company's entry into Canada and is expected to grow over time.

Why it is important: Between HBC and Space NK, it’s a wholesale relationship, which Space NK calls “wholesale-plus.” The Bay buys the products that are sourced by Space NK.

Space NK, the beauty destination found online and in stores in the U.S., the U.K. and Ireland, is entering Canada through a partnership with the Hudson’s Bay Co.

An array of indie, niche and premium brands for skin care, makeup and hair care sourced by Space NK launches today on thebay.com. Space NK shops will appear inside three Hudson’s Bay flagship stores in early October: Yorkdale, Montreal and Vancouver. The Space NK shops-in-shop will range from 550 to 1,000 square feet.

In North America, Space NK currently has shops inside select Bloomingdale’s and Nordstrom stores, which have also been shifting to more of a wholesale model, from a concession model with Space NK.

Hudson’s Bay Co. Makes Room for Space NK 

What:  A new concept launched by a US dollar store chain, aiming at a new, more upscale, customer

Why it is important:  So far, results of such a new venture, outside of Dollar General’s comfort zone, is exceeding expectations.

Dollar General has launched a new store concept in October 2020, Popshelf, to court an entirely new customer, different from the usual customer base of the retailer. The goal is to go slightly upscale in terms of product offer, but remaining at the same time in the dollar store universe.

Since the launch, 8 stores have been opened, each measuring approximately 900 sqm, with full year performances exceeding the ones of traditional Dollar General stores by USD 0.3 to 0.6 million on average, and a margin increased by 8 points.

It is viewed by analysts as a way for Dollar General to compete with other concepts such as Five Below, with prices under USD 5 on average. So far, the concept is resonating with customers, with NPS between 80 and 90%.

Dollar General launches a new store concept, Popshelf

What: The luxury brand is joining a rush of brands launching their own e-commerce sites in Mexico, including Cartier, Bulgari and Boss.

Why is it important: Louis Vuitton is hoping to profit from growing luxury sales as Latin America’s second-largest economy exits the pandemic.

A wide selection of collections including ready-to-wear for men and women, leather goods, shoes, accessories, travel, fragrances, and jewellery will be available to Mexican customers.

The brand will also offer personalized services such as hot stamping and engraving. Free delivery or store pick up through Click & Collect will be available, including at its flagship store in Mexico City’s.

Louis Vuitton Launches E-commerce Site in Mexico 

What: The American retailer has taken a minority stake in Topshop and the three other brands Asos acquired out of administration in February.

Why is it important: The deal could signal a new chapter as fashion’s biggest retailers seek out strategic alliances to build an edge in the market.

Asos has performed well during the pandemic, benefitting from the closure of physical stores. But it faces fierce competition from rivals like Boohoo Group and Zalando and has long-standing ambitions to expand in the US. Meanwhile, Nordstrom is regrouping after a challenging year.

A tie up between Asos and Nordstrom could help solve issues for both companies. Asos has strong penetration with a young customer base –— and the powerful Topshop brand. Nordstrom has a ready network of stores in the US. While Asos has said physical retail is not its model, there are definite benefits to gaining access to storefronts.

The partnership will build on existing ties. Nordstrom has been the exclusive retailer of Topshop and Topman in the US since 2012 and will gain exclusive multi-channel retail rights for the two brands for all of North America. It will be the only brick-and-mortar presence for the brands globally.

Nordstrom Buys Stake in Topshop With Asos Joint Venture

What: PayPal has announced the introduction of PayPal Zettle in the U.S., a digital point of sale solution that will allow small businesses to seamlessly sell across in-person and online channels.

Why is it important: The launch coincides with drastic shifts in consumer behaviour toward digital and omnichannel experiences where all businesses need to invest to meet consumers where they are.

With PayPal Zettle, small businesses will gain an integrated solution that allows it to accept a range of payments in-person with the Zettle card reader, will help them start selling online and also help manage sales, inventory, reporting and payments across channels. The new solution will also enable small businesses to utilize PayPal’s suite of payment and commerce solutions including its Business Debit Mastercard and invoicing.

By partnering with PayPal, small businesses’ in-person and online sales can be managed through a PayPal Business account where the business will have access to their funds within one day. Additionally, small businesses will be able to offer consumers more payment options including credit and debit cards, PayPal and Venmo QR Codes, digital wallets and access to PayPal Working Capital.

PayPal Introduces PayPal Zettle in the U.S. 

What: John Lewis Partnership intends to cut another 1,000 roles as part of a wide-ranging restructuring.

Why is it important: The latest job cuts come only a few months after announcing eight John Lewis stores closing and a first-ever annual loss.

The employee-owned retailer said jobs at risk will be a variety of management roles in both John Lewis department stores and Waitrose grocery outlets. The retailer said its proposals would reduce the number of layers between workers in stores and senior leaders and “allow us to reinvest in what matters most to our customers.”

The partnership has 331 Waitrose supermarkets and 34 John Lewis stores. There will be an average reduction of 2.7 roles per shop if the proposals are confirmed.

John Lewis Plans to Cut 1,000 Jobs as UK Retail Woes Worsen 

What: It will be located in Suseo Station Transit Centre.

Why is it important: Shinsegae said the operating area would be about 83,000-square-meters, and it would become its second largest department store after its Gangnam Branch.

The project aims to develop a 115,927-square-meter site around the SRT Suseo Station in Gangnam District, Seoul, into a complex of commerce and businesses.

It is the second time the department store is participating in a project involving a train transit complex. In 2016, the company opened a department store branch at Dongdaegu Complex Transfer Center at Dongdaegu Station in Daegu.

Shinsegae Department Store to build new landmark in Suseo

What: Boohoo partners with Kuwait’s Alshaya to grow Debenhams in the Middle East.

Why is it important: The Debenhams brand has been popular in the region so this is a great opportunity to develop both Debenhams and Boohoo.

Alshaya, a franchise operator which runs Debenhams stores in shopping malls, will have exclusive rights to operate the stores and a local e-commerce platform in Kuwait, Saudi Arabia, the United Arab Emirates, Bahrain, Egypt, Oman and Qatar.

Boohoo’s says it seeks to work with strategic wholesale partners in key regions to extend its reach. The Alshaya partnership will see Boohoo brands in Debenhams stores from the fourth quarter of 2021 and on a new local online platform across the Middle East from early 2022.

Boohoo Partners With Kuwait’s Alshaya To Grow Debenhams in Middle East 

What: Large-scale shopping malls in Bangkok and some 10 provinces are closed to comply with the latest Covid-19 curbs.

Why is it important: Covid19 cases are surging in Asia, from South Korea to Thailand.

Sixteen branches belonging to Central Department store will be closed from 12 to 25 July. Shopping malls under the Mall Group, including all branches of The Mall, the Emporium, the Emquartier, and Paragon Department Store, are also closed.

Supermarkets will remain open from 8am to 8pm, while key service businesses at these premises, including eateries (takeouts only), banks, pharmacies and mobile phone shops are also open.

Major malls close for two weeks to curb infections

What:  The passing away of an iconic Filipino entrepreneur

Why it is important: Mr. Tancoco is well-known in the country for having enabled international luxury brands to enter the market in the 1950’s

Bienvenido Tancoco Sr, founder of Rustan Group in the Philippines, passed away this week. Tancoco is famous for having introduced many luxury brands to the Philippines in the 50’s, such as Yves Saint Laurent and Christian Dior, remaining an operator of these brands for a long time. Mr. Tancoco also served as the ambassador to the Vatican from 1983 to 1986.

Rustan’s is composed, among others, of 5 department stores in the Philippines as well as Stores Specialists, a franchise operator for foreign brands.

Benny Tancoco