What: The revamped flagship is the first iteration of the new Bed Bath & Beyond concept

Why it is important:  Gone are the days when presenting products in a warehouse-like atmosphere was enough. This new concept acknowledges the need of experience and services as a very basic expectation of the post-pandemic customer.

The first iteration of Bed Bath & Beyond new concept has been launched in New York, in a 920 sqm space which is radically different from the way the retailer was previously selling its products.

The customer experience is based on immersion and ability to try and save time, through an interactive vacuum display, a “scan and buy feature”, the usual set of fulfilment options (BOPI, kerb side pickup, same-day delivery). It also emphasizes the presentation of its own private labels (of which six of them have been launched this year), and completes the experience with the appropriate set of F&B options.

This new experience takes distance with the previous concept which stacked products and cluttered stores, an approach which affected Bed Bath & Beyond competitiveness. The retailer plans to invest USD 250 million to remodel 450 stores in the coming 3 years.

Bed Bath & Beyond to open redesigned NYC flagship

What: People will have to show proof of vaccination or a recent negative Covid test to enter shopping centres and restaurants in France starting in August.

Why is it important: The new regulation might have an important impact on traffic and sales, pushing further customers to shop online.

Starting 21 July, people over age 12 will be required to show proof of vaccination or a recent negative COVID-19 test to enter concerts, theatres and amusement parks in the country. In August, the requirement will be extended by law to cafés, restaurants, shopping centres, hospitals and retirement homes as well as airplanes, trains and buses for long trips. The government will consider extending the requirement to other activities, depending on how the situation evolves.

Macron also announced that workers in hospitals and retirement homes will be required to get a vaccination by 15 September or face sanctions, which were not specified.

France to Require Proof of COVID-19 Vaccination to Enter Shopping Malls 

What: A multitasking salon opens at the Knightsbridge store.

Why is it important: Expected to be more important in the future, beauty services are developing in department stores as a great way to increase customer loyalty and time spent in store.

Harrods has been refurbishing and expanding its beauty halls over the past three years to create one of the largest offers in the country, and worldwide. The new halls currently span 90,000 square feet on the fifth floor, and Hair and Beauty Salon, which puts a strong focus on wellness and services, adds a further 16,985 square feet.

The space was created by the London-based Sparcstudio Design, and based on a 1982 picture of the store. It features glossy peach marble, cream stone counters and powder-pink walls with gold finishes. Treatment spaces include a Backwash Room, Conditioning Bar, Hairdressing Rotunda, Eye Zone, and a Hair Extension Library.

The Hair Extension Library is packed with an array of colours, lengths and styles allowing customers to get their extensions on the spot. The salon’s Backwash Room was inspired by traditional Japanese head spa rituals. It offers customers a “facial” for the scalp, a head massage, and a trip to the Conditioning Bar, for bespoke treatments.

Some 43 beauty brands are on offer with several Harrods exclusives, including Sarah Chapman’s Overnight Facial; Aromatherapy Associates’ City Serenity Bath & Shower Oil; Philip Kingsley’s Mayan Vanilla & Orange Blossom Elasticizer, and Harrods’ first beauty box, which contains an assortment of hair and skin care essentials chosen by the Harrods beauty buying team.

Other treatments include nail art by Townhouse, laser hair removal, waxing, massages, body wraps and facials. There is also an Eye Zone, which offers eyelash extensions, Anastasia Beverly Hills eyebrow treatments, and Dr. Dennis Gross LED light treatments, and Oxygen Flash Facials.

Hair by Harrods

What:  Olivier Bron, former Galeries Lafayette’s Director of Strategy, takes on a new challenge.

Why it is important: With an experience both as a consultant at Bain and Strategic Director and COO at Galeries Lafayette, Olivier Bron is bringing in a new set of competences to the Thai competitor of IADS member The Mall Group.

Olivier Bron was appointed Director of Strategy for the Galeries Lafayette Group last year and previously led the Galeries Lafayette-BHV network before becoming Director of Group Operations in 2018.

The executive, who had spent more than twelve years at Bain & Company before joining the group led by the Houzé family, will now lead the activity of Central department stores, which have 23 units in Thailand, but also the Robinson brand, which operates about fifty stores in the country and has begun an expansion outside of its borders.

Galeries Lafayette Olivier Bron, Strategy Director, has left the group

What:   Hema is closing down its entire operations in the UK to focus on its core markets

Why it is important:  The race is not anymore on scale economies and network size, but making sure each individual operation is profitable and efficient.

Hema has announced the total closure of its 6-stores strong operations in the UK, effective by the end of the summer. The CEO explains this decision by the search for sustainable growth on its core markets, namely the Netherlands, Belgium and France. The company established its presence in the UK in 2014, and it is highly probable that the difficulties inducted by the Brexit also explain this decision.

PRESS RELEASE - HEMA focuses on core markets and withdraws from the United Kingdom

What: Bloomie’s will be a convenient, elevated and slimmed-down version of the department store.

Why is it important: Following the flexible format units trend initiated by Nordstrom Local stores, Bloomingdale’s is also thinking small with its first Bloomie’s store, a 22,000-square-foot unit opening on 26 August in the Mosaic District shopping centre in Fairfax, Virginia.

Bloomie’s emphasises luxury, advanced and contemporary labels, and services such as personalisation, customisation, and alterations. The selection is rounded out by beauty, fine jewellery, eyewear and men’s wear. Bloomie’s will also offer services, including easy returns from any channel at the Returns Dropbox, and buy online for in-store or curbside pickup, all accessible through the centralised Front Desk at Bloomie’s.

Every associate on the sales floor will be a stylist, expert in all categories, to provide a level of service enabled by technology. Each stylist will be equipped with digital selling capabilities, allowing them to access special finds for customers outside of Bloomie’s, from nearby Bloomingdale’s stores to Bloomingdales.com.

Bloomingdale’s Is Downsizing With Bloomie’s, A Convenient, Elevated New Concept

Bloomingdale's press release

What: The new brand, And Now This, offers men’s and women’s apparel for the “fashion-forward, contemporary shopper.”

Why is it important: Privates labels, now consisting of some 20 brands, are a corner stone of Macy’s turnaround strategy.

Striking a balance between a trend-focused aesthetic and affordable price points, the new label’s selection is built around basics that seek to be both wearable and elevated, with a sophisticated touch.

The retailer said that it was on track for its private brands to collectively make up 25% of its total sales by 2025 and revealed plans to transform its popular International Concepts, Alfani, Style & Co., and Charter Club labels into USD 1 billion businesses.

Macy’s Gets Contemporary With Latest Private Label 

Macy's Launches And Now This for the Fashion

What: The agreement announced last November finally translates in the first store openings

Why it is important:  The combination of both Target’s and Ulta’s reward programs provide interesting features for customers, and raise some questions on how the data is processed and by whom.

Following the announcement last November of opening 800 Ulta shop in shops at Target, the first batch of 100 points of sales is about to open. These shop in shops will offer a selection of the Ulta product range, including 50+ top brands, its own private label and collaborative brands.

Ulta shop in shops will make the most of the whole services developed by Target: click & collect, same day delivery, cumulated reward program and presence on Target’s e-commerce website. Customers will also enjoy Ulta’s virtual try-on tool, Glam Lab.

Target is consistently expanding its offer via partnerships to be a full one-stop shop. Besides Ulta, it has made deals with Apple and Disney in a similar manner.

Ulta Beauty at Target Launches in August — Get All the Gorgeous Details

Ulta to open first Target shop-in-shop locations in August

What:  The largest mall in the US finally comes to completion

Why it is important:  The luxury section, initially intended to make the most of international tourism, is now addressing local communities and neighbouring states.

The American Dream mega mall, which opened in 2019 just before the Covid-19 pandemic, finally comes to completion by opening its luxury section, called the Avenue, a year or so after its planned opening date. It will include Saks Fifth Avenue (reported here) as well as international brands (Hermes, Saint Laurent, Tiffany, Dolce & Gabbana, Mulberry…). The 30,000 square meters wing is currently leased at 70%, as some significant tenants which signed up at the beginning simply disappeared in the meantime (Lord & Taylor, FAO Schwartz, Barney’s).

Speculations on the fate of this mega-mall in a post-pandemic world have gone for some time now (read this report from the New York Times in December 2020) and initially intended to draw international tourists. Due to the Covid-19 pandemic, it has adjusted its offer, to a total of 45% retail and 55% entertainment, to better address the local communities and neighbouring states (Pennsylvania, New Jersey, New York, Connecticut, Florida, Ohio).

American Dream Mall

What: The department store partners with My Wardrobe HQ for a pop-up and an online offer.

Why is it important: Rental is becoming increasingly common, after MYWHQ popping up at Liberty last year and Selfridges offering an in-house rental service as part of its wider Project Earth initiative.

Harrods said the pop-up will stock a “highly curated” edit of formal and event pieces as people return to socialising. The pop-up will be located on Harrods fourth floor and on MWHQ’s own website. Customers also have the option to purchase the pieces.

Alongside rental, Harrods has also introduced after-care and bespoke services designed to prolong the lives of luxury items. Harrods offers a bespoke alterations service, an in-house cobbler at Shoe Heaven on the fifth floor, and also houses The Restory, which specialises in cleaning and repairing accessories.

MWHQ got a publicity boost last month after Carrie Symonds, Prime Minister Boris Johnson’s wife, wore a series of rented outfits and accessories to the G7 summit in Cornwall, England.

Harrods Welcomes Fashion Rentals With My Wardrobe HQ Pop-up Shop 

What: The department store has filed its results for the year to the end of January and said that it was "significantly impacted" by the three separate Covid lockdown in the UK.

Why is it important: The company saw strong growth online, thanks to brand new customers,  in all categories, especially in beauty and home.

It meant the flagship was closed for almost six months of the financial period and even when it was open, restrictions on movement meant that both domestic and international tourists stayed away. Meanwhile, the office workers on which it can usually depend in London's West End were also staying at home.

That said, Liberty Online benefited from the lockdown and the company said it showed strong revenue growth year-on-year.

Looking at the numbers, total revenue fell to GBP 55.768 million from GBP 93.138 million a year earlier. Sales per square foot, including concession revenue, at its flagship store fell to GBP 358 from GBP 1,309 as the impact of the store closures kicked in.

EBITDA before non-recurring and one-off items, was a loss of GBP 12.588 million from a profit of GBP 14.442 million a year earlier. But while the company made a pre-tax loss of GBP 1.322 million, that was better than the loss of GBP 6.696 million a year earlier. And it managed a net profit of GBP 2.522 million, again, much better than the loss of GBP 8.342 million a year ago.

Liberty hit hard by flagship Covid closure but online booms

What: Walmart is teaming up with a dedicated chain of clinics to propose chiropractic care in stores

Why it is important:  Health services in stores is a growing trend for retailers to increase their proposal and make sure stores remain at the centre of customer’s lives. Walmart is accelerating fast on that matter.

Walmart is partnering with The Back Space, a chain of retail health care centres, to open in 10 stores health services. Customers will have the possibility to enjoy USD 25 treatments on a walk-in basis, but also through a monthly membership.

The goals of this pilot is to validate customers’ interest for such an offer, before deploying more in case it is successful.

Retailers are increasingly considering health care services in stores (see our Monoprix review , this article on mental health or Walmart telehealth venture) as a way to put stores at the centre of customer’s lives and give reasons to come back often.

Chiropractic Clinics Opening Within Walmart Stores

What: Gap Inc. has announced that it will close all stores in the U.K. and Ireland.

Why it is important: The closures come as Gap Inc. undergoes an operational revamp.

Gap Inc plans to close all Gap and Gap Outlet stores in the U.K. and in Ireland, although it plans to continue online sales. The retailer is looking to revamp their European operations by understanding the geographical needs for each country.

Gap continues to expand its footprint in Europe as it is negotiating with French retailer Hemione People and Brands to take over its stores. And Italian fast-fashion retailer OVS announced that it will sell Gap clothing online and in stores.

All Gap company stores in U.K., Ireland to close 

What: A reflection on the potential competitive advantages of the new Bloomie’s format launched by Bloomingdale’s and how it could complete, not compete with, the larger department store format.

Why it is important: The US market is known for having a high department store footprint, which might be disconnected for the actual needs of the market. This is why department stores have searched for a long time a new formula to reinvent themselves. Bloomie’s is the latest venture of one of the major players on the market.

Launching a new, smaller retail concept is not something new for US department stores, which have been searching for a new winning formula for quite some years. However, so far, the initiatives were not that successful: Neiman Marcus launched in 2006 a new model, Cusp (smaller boutiques with a lower price contemporary approach), but, instead of opening 70 stores, Cusp became a shop-in-shop concept within Neiman Marcus stores. Nordstrom launched Nordstrom Local, however, they are more successful for being services super hubs more than points of sales.

Things may change with Bloomie’s, launched by Bloomingdale’s, which are expected to be about one-tenth of the typical Bloomingdale’s size with, according to the article, several interesting competitive advantages:

• The smaller format makes it more scalable, and can integrate smaller neighbourhoods, reinvigorating a certain sense of intimacy with local customers,
• The selection will be tailor-made to the local community, with an adaptable floor plan according to the best categories for local customers,
• Bloomie’s will also make sure that many services are available: stylists, BOPI and an easy returns option, customisation and alteration services, all supported by a tech platform allowing the sales staff and customers to access the whole Bloomingdale’s offer.

Analysts see this new venture as a way to keep alive the multibrand retail, in a market which is considered as overcrowded with department stores.

Bloomingdale’s Finds A Scalable New Model In Bloomie’s

What: The president of Nordstrom stores talked with WWD

Why is it important: As it recovers from the pandemic, the retailer sees growth opportunities with Topshop and other Asos-owned brands, and the annual anniversary sale.

Last Sunday, the company disclosed that it took a minority equity position in the Topshop, Topman, Miss Selfridge and HIIT brands owned by Asos, which acquired them from the Arcadia Group that went bankrupt last year. Nordstrom has been selling Topshop and Topman merchandise in the U.S. exclusively since 2012, though that business was impacted by Arcadia’s bankruptcy last year. “The whole supply chain turned upside down. Product delivery was disrupted. But the demand is still there,” said Nordstrom. “The customer doesn’t care about Arcadia’s financial situation or who owns Topshop.”

The executive outlined current selling trends, citing a pickup in wedding-related fashion with weddings resuming. He said casualization and comfort continue strong, abetted by the pandemic; as do flats, and athleisure. Bestselling brands include Alo, Sweaty Betty, and Zella, a Nordstrom-owned brand. Denim is also selling, while men’s suits, historically a big part of Nordstrom’s business, is questionable. He said shopping fashion to wear at charity and industry events seems still on hold, yet should resume this fall. Regarding e-commerce, digital accounted for more than 30% of the company’s volume at the start of 2020. The pandemic pushed digital to 54% of sales by the fourth quarter last year.

The Anniversary Sale is staged across the entire fleet of Nordstrom department stores. It enables the retailer’s highest-spending customers a first crack at shopping designer discounts on new fall styles, at 25 to 40% off. Other loyal but less spending cardholders get access soon after, and on 28 July. “Our two biggest scaled events are the Anniversary Sale and Holiday. A disproportionate amount of our planning and energy are on those two periods,” said Nordstrom. On volume, “They’re pretty darn close, and they are of equal importance to us. But they’re different. This is more of a loyalty event.”

Nordstrom has forecast annual revenue to reach USD 17 billion in the next three to five years, which compares to USD 10.38 billion in sales last year, and USD 15.13 billion in 2019. Last year, Nordstrom had a net loss of USD 690 million, versus reporting a profit of USD 496 million in 2019.

According to the executive, traffic and demand have picked up in the last four months as states lowered COVID-19 restrictions. Still, he acknowledged that Nordstrom’s urban stores more focused on tourism, including those in Chicago, San Francisco, Seattle and New York, haven’t seen the same kind of lift in business as suburban stores.

Jamie Nordstrom on Business, Anniversary Sale and Asos 

Nordstrom and ASOS Announce Game-changing Joint Venture

What: The Seoul metropolitan area will be placed under Level 4 distancing, the highest in the new social distancing system, until July 25.

Why is it important: Shinsegae, Hyundai and Lotte are among the department store operators forced to temporarily close branches after employees tested positive for Covid-19.

Seoul Department Stores Close Temporarily as Covid-19 Cases Surge 

What: The retailer has decided to give bonuses to many of its employees who stay on the job through the year.

Why is it important: Kohl’s and other retailers are challenged by labour shortage, in part due to people preferring to stay home rather than work, government assistance, child care requirements and a sense that wages are too low.

Kohl’s said hourly store, distribution centre and e-commerce fulfilment centre associates will be eligible to receive a bonus ranging from USD 100 to USD 400 for working with the retailer through the holiday season.

Kohl’s also hosted its first nonseasonal hiring event at all of its stores nationwide. The goal was to hire 5,000 associates for both full- and part-time positions. Kohl’s said it offers competitive wages, a weekly pay schedule, flexible schedules, including day, night and weekend shifts, an immediate 15% Kohl’s associate discount.

Kohl’s Sets Bonuses for Employees Who Stay On 

What: Farrell Redwine will join the executive team and report to Nordstrom CEO Erik Nordstrom.

Why is it important: Nordstrom is committed to diverse workforce representation at every level of leadership. Redwine was recognized by Savoy magazine as one of its 2019 "Most Influential Women in Corporate America," a prestigious list of African American business leaders and executives.

Redwine joined Nordstrom in 2016 and has held various leadership roles throughout her tenure, most recently overseeing centres of excellence for the entire employee lifecycle. Prior to Nordstrom, she held global HR leadership roles at several other large corporations, including ExxonMobil and Time Inc.

She will oversee all aspects of human resources including recruitment and succession planning, learning and development, recognition and retention, diversity, and total rewards.

Nordstrom Announces New Chief Human Resources Officer Farrell Redwine

What: From 9 to 12 June, the retailer surveyed 2,000 Americans, exploring how COVID-19 affected their fashion choices and their perceptions of what they need to return to the office and start socialising again.

Why is it important: The future of fashion feels “uncertain” as 41% of responders said they would dress comfortably for the rest of their life while nordstrom.com has seen a 165% increase in searches for work clothes.

Thirty-two percent of those surveyed said they want help finding looks for dining out; 34% want help finding outfits for events; 21% want help selecting travel clothes, and 20% want help selecting clothes for work. Also, 36% haven’t bought new work clothes since before the pandemic.

Those planning to return to an office this fall said they are looking forward to getting out of their “comfort” zone and are keen on dress pants, 28%; dress shirts, 28%; dresses, 26%; handbags, 22%; skirts, 22%; statement boots, 18%; heeled shoes, 17%.

Nordstrom Gauges Americans’ Wardrobe Needs, Post-Pandemic 

What: Unilever has invested USD 275 million to expand the production capacity of its manufacturing facilities.

Why it is important: Mexico continues to be an important growth lever for the company.

The investment will help increase export capacity to USD 1 billion over three years to the United States, Canada, the Caribbean, Central and South America, and Europe. The investment will also create 3,000 more jobs in Mexico.

Unilever’s $275 Million Mexican Investment 

What: WS Development’s president Samantha David and Clot’s co-founder and creative director Edison Chen discuss using retail stores as community spaces.

Why is it important: Retailers are encouraging a sense of community, which emerges as an increasingly part of successful physical retail strategies. Whether evidenced through representative store design with visual storytelling that reflects the neighbourhood in which the store sits to encourage local engagement, or events that foster loyalty among consumers for whom social activities are an important differentiating factor.

Prioritise the place over purchase

SD: When we think about building a place, it makes a lot more sense to think about where somebody wants to spend their time and not where they necessarily want to spend their dollars. I think you create much deeper bonds and deeper loyalty. We actually launched in the Seaport in Boston a collection of tiny [stores] called The Current. Some are 200 square feet, and it forces creativity. There is usually one person in there, so it forces a connection.

EC: If someone walks into our store, it’s important for them to feel included in the community that we’re trying to build. [We ask] what do local people want to see. And that leads to a discussion [about] the way that the interior is designed, like in LA, it’s a heavy art gallery vibe, and in Shanghai, it’s like an old traditional Chinese pagoda village. So I definitely think that the curation of each store is heavily reliant on local culture and local needs.

Learn about the local communities and cultures

SD: I certainly know I don’t want to walk into a store or a mall and have them all feel the same. [In] different neighbourhoods, in different communities, each one is completely distinct, and whenever we buy a property, the first thing we do is just listen.

EC: From city to city, the culture is very different, and [it’s about] trying to really accommodate and accentuate what the locals are feeling or what they’re going through or what is trending. Retail nowadays isn’t just about a sale, especially as more people shop online and [a] store is just an area for people to understand what you as a company are representing.

Foster a company culture for employee and consumer loyalty

EC: The type of person that we want to work with is someone that isn’t jaded and someone that is willing to admit that they can still learn every day. Having people who understand the nature and the culture that we represent makes it a lot easier for us to send out the troops and have them navigate and search for these people.

SD: I think that our tribe is what distinguishes our places and similarly, with a great retailer, you walk in and you meet a person who’s passionate about that place. If we can’t find somebody to do a job [...] we just pitch in until we can find that superstar player, instead of settling.

This is a sponsored feature paid for by WS Development as part of a BoF partnership.

Optimising the Store as a Community Hub 

What: AR is perceived to be a strong selling tool in the near future

Why it is important:  It can provide a special, unique and fully branded experience to customers, including for department stores. However, it shall not be perceived as a gadget or an entertaining feature, but on the contrary with the customer’s interest and experience in mind.

Augmented Reality techniques are reported to impact customers purchases and decisions, according to researchers, which explains the renewed interest for it, especially from Snapchat. Even though AR has been used for recreational motives so far, retail brands are increasingly using it to sell products.

Gucci for instance made a special operation with Snapchat to propose a virtual sneakers try-on session, directly leading customers to the product page with an option to buy them. Ikea has developed a dedicated app, Places, which allows users to visualize their desired pieces of furniture in their interior. A recent update is even analysing customers’ interiors to make customized recommendations and proposals, combining AR with AI.

It is believed that such approaches could generalize, as shown in the cosmetics area, where brands, and retailers (such as Amazon) are using this technique to allow customers to try before buying their products.

However, the author reminds that AR is not a magical wand, but a tool, which needs to answer a customer need, or provide a new feature. Moreover, for retailers willing to dive into this field, the need of being technically flawless is more important than ever.

How Ikea and Gucci use VR

What: Farfetch has partnered with ThredUp to offer a donation program.

Why it is important: As resale gathers steam, Farfetch is committed to become more and more circular.

Farfetch is offering its customers a “clean out kit” from ThredUp where they can fill up a bag with gently used items that will then be resold. 50% of the profits will be donated to charity. Any remaining payout will be given as a Farfetch shopping credit.

This partnership is the first time that ThredUp’s “clean out kit” will allow a retail-as-a-service partner to use its white label offering.

Farfetch, ThredUp partner on clothing donation service 

What: A refurbished category at Harvey Nichols which gets rid of its historical operator

Why it is important:  Harvey Nichols was late on managing directly a key category and a significant contributor to margin.

Harvey Nichols has announced the launch of its childrenswear section in its stores and online, including 25 brands and more than 700 items, covering customer needs form newborns to teens, both on casual and occasion wear.

This is the first time that Harvey Nichols ventures in this category directly without delegating it to a specialized operator. The offer will be available at the Knightsbridge, Manchester, Leeds and Edinburgh stores.

Harvey Nichols launches its first ever childrenswear range

Harvey Nichols to launch kidswear department