What: Shein is opening its first-ever permanent store in the fashion precinct of Harajuku in Tokyo, Japan this November.

Why it is important: Customers cannot take products home from in-store, but instead can make purchases by scanning QR codes and buying through the Shein app which will then ship products to their home or office.

Along with the store opening, a Shein pop-up will be open in Osaka until the end of January, with nine fitting rooms and around 800 items across men’s, women’s, home and pet categories. Inside the 201-square-metre two-story building in Harajuku, the first Shein store will include three fitting rooms and an Instagrammable photo booth.

Shein opens first permanent store in Tokyo

What: UK-based luxury retailers Selfridges, Flannels and Matchesfashion are utilizing Hurr’s platform for fashion rental to meet circularity commitments.

Why it is important: Matchesfashion, like other retailers and brands, is using Hurr’s white-label technology to meet sustainability goals with the hopes that luxury retailers existing within the fashion rental space will increase consumer demand for circularity.

Questions still remain on whether clothing rental is a sustainable endeavour or not considering the construction, wear and cleaning of garments.

Hurr is reliant on brands to design clothes to fit a circular system to complement its efforts on improving cleaning and transportation as it aims to reinvent ownership and extend the lifecycle of products.

Matches Fashion joins clothing rental platform Hurr

What: Target is introducing a new large-format store that will be roughly 20,000 square feet larger than its average store at 150,000 square feet.

Why it is important: Pivoting away from its recent small-format store expansion, Target will use the larger format to play with a more open layout and localized elements that the retailer plans to incorporate into future remodels.

The move is intended to better support same-day services while incorporating more sustainable features such as larger windows for more natural light and plants and regionally sourced reclaimed wood to create a “welcoming” atmosphere. The new design features will be rolled out in remodels to more than 200 stores beginning in 2023 as well as 30 new stores that Target has planned. Starting in 2024, all of Target’s remodels and new stores are expected to incorporate the designs.

Target pivots to larger store format

What: Korean retail groups posted unexpected losses in 2022 Q3.

Why it is important: Their department stores divisions are all growing and posting profits, which are offset by overseas, online and other categories businesses.

Korean department stores announced disappointing results for the third 2022 quarter:

-    Shinsegae increased sales by 17,3%, to €1,41bn, but profit fell to  €70m, down 50% from last year. The department store activity specifically increased by 19,8% to €440m.

-    Lotte shopping reported sales increasing by 0,2% to €2,88bn, but last year profit of €220m turned into a net loss of €70m this year. The department store activity increased sales by 17,3% to €550m and its operating profit increased to €80m, thanks to fashion items and international brands. China, online activity and the low performance of the electronic goods retailer Lotte Himart are the main reasons for the net loss at the mother company level.

Shinsegae- Source 1

Lotte- Source 2

What: The FT predicts that once the inflation distortion is stripped out, the season will show a decline in sales and revenue year on year.

Why it is important: While the crunch in Europe and the rest of the world is expected for Q1 2023, these predictions for the US might have some consequences on customers’ morale a few weeks before the much-expected Christmas season.

The Financial Times reports that retailers are facing their first real-terms fall in revenue since the global financial crisis, as Black Friday starts in a unusually high inflation period (the highest since the early 80s). While the newspaper expects a growth of +4.5% y-o-y, this means -1.2% when the inflation effects are stripped out.

In addition to retailers selling at a higher price to offset their own costs, customers will be looking to promotional offers and make the most of their credit card borrowings, all of which will be eroding retailers margins this season.

US retailers face first sales slowdown since financial crisis

What: Saks Off 5th’s website has launched a ‘Guaranteed Deliver Date’ service that allows customers to see a more accurate delivery date for an order at the time of checkout.

Why it is important: Just in time for the holidays, Saks is taking a customer-centric approach with their new guaranteed delivery date service provided for all possible shipping methods, allowing customers to select the delivery date and cost option that best suits them.

Instead of three- to five-day time frames for delivery or waiting until an order has shipped for customers to have visibility, Saks Off 5th online customers can now see specific delivery dates when browsing product detail pages or at the time of checkout.

In addition, Saks Off 5th.com has introduced next-day and expedited delivery options.

Saks Off 5th enhances delivery service

What: John Lewis might scrap for the second time in 70 years the annual bonus due to a complicated economic context.

Why it is important: Retail companies are struggling to attract new and younger talents. The economic pressure on them might increase those difficulties, which might in turn fuel even more their lack of attractivity.

The chairwoman of the John Lewis partnership, Dame Sharon White, has recently warned that the cost of living crisis could affect workers’ pay, and especially their annual bonuses (John Lewis works as a cooperative and employs 80,000 workers, or partners).

The payment of bonuses was already suspended in 2020 for the first time in 70 years, before resuming in 2021 with a 3% bonus (the equivalent of one and a half week’s pay).

John Lewis might not pay bonuses this year 

What: Michelle Gass of Kohl’s is moving over to Levi Strauss as president with plans for her to succeed current CEO Chip Bergh in 2024.

Why it is important: Michelle Gass will lead the Levi Strauss brand’s global digital and commercial operations as president and board member until she succeeds current CEO Chip Bergh in 2024.

Meanwhile, Tom Kingsbury will take on the CEO duties in the interim period while a committee looks to replace Gass.

Kohl’s CEO exits for Levi’s - Retail Dive

Kohl’s CEO exits for Levi’s - WWD

What: John Lewis Partnership chief operating officer Andrew Murphy is leaving the retail group after reaching his 30-year milestone with the group.

Why it is important: In response to the COO’s departure, there are considerations of devolving the supply chain responsibility back to the individual businesses, John Lewis and Waitrose.

As one of the most experienced retailers in the group his departure, his departure comes as a bit of a shock. Murphy rose through the ranks and eventually helped steer John Lewis and Waitrose through the pandemic.

His departure does coincide with supply chain issues within Waitrose stores following a poorly handled IT integration.

John Lewis COO exists at 30-year milestone

What: After a seven-year hiatus, the Neiman Marcus Group is reviving its prestigious Neiman Marcus Award for Distinguished Service in the Field of Fashion, awarding it to Brunello Cucinelli in March of 2023.

Why it is important: Neiman Marcus’ CEO states that the NMG Awards differentiate from other fashion awards as they are a multimillion-dollar investment in open-to-buy and retailtainment platforming recipients by showcasing and connecting them with the retailer’s customers.

Reviving its fashion award for pioneers, innovators and leaders aims to reinforce Neiman Marcus’ partnerships with designers and opens the way for NMG Awards next year.

Neiman Marcus renews ‘Distinguished Service’ Fashion Award

What: As Alibaba grapples with an anti-monopoly crackdown and the economic downturn, the company posted a third-quarter report showing an exorbitant net loss.

Why it is important: Alibaba is seen as a reflection of Chinese consumer sentiment, making its Q3 results of -2.89 billion dollars seem like more than simply a decrease in market prices of equity investments, which was the excuse Alibaba provided shareholders.

Revenue for the three months was up 3% year-on-year at 207.2 billion yuan, but after posting flat quarterly revenue, the company laid off a number of employees, with its headcount down more than 1,700 from the previous quarter.

Alibaba is also the focus of regulatory crackdowns in China and sits on a US watchlist, causing shares to slump.

Alibaba reports loss of USD 2.89 billion

What: Showfields has signed a 10-year deal with EastBanc, a D.C. real estate development firm, to occupy a space in the US capitol.

Why it is important: Following the recent debut of its New York NoHo store and keeping with its unique style of retail, Showfields’ DC location will stretch across three floors with departments that resemble rooms in a typical home which the retailer plans to make more holiday-centric for the upcoming season.

Similarly to Showfields, Simon Property Group has partnered with Leap, a company that helps DTC brands transition into physical stores, to bring more digitally-native companies into malls. As part of the collaboration, the two companies are opening four stores in California and Florida.

Showfields opens location in Washington, DC

What: The two New York-based department stores, Bergdorf Goodman and Bloomingdale’s, are through extravagant Christmas celebrations with brand and celebrity guests to ring in the holiday season.

Why it is important: Bergdorf Goodman pays tribute to artisans and craft techniques through their Christmas windows, while Bloomingdale’s celebrates its 150th anniversary, but both department stores are using live events, gift packages and VIP partnerships to attract customers.

Bergdorf Goodman’s seven holiday windows honour artisans and their techniques, traditions and handiwork while exploring the notion of “extraordinary thinking” and creativity. The campaign also encompasses in-store and digital presentations, exclusive products, and first-class travel experiences. Each window focuses on a particular craft: paper sculpture, woodworking, paper mâché, dressmaking, etc. Limited edition gifts rooted in craftsmanship are also available as part of Bergdorf’s partnership with Sarabande and Gabriela Hearst. Each will “pop up” with activations at various times throughout the season. In addition, key brand partners are offering gift packages ranging from 15,000 dollars to 150,000 dollars, such as one gift offered by Schiaparelli which includes a trip to Paris with extensive cultural, fashion and dining experiences.

Bergdorf’s digital channels have also released a “Magic in the Making” film featuring a cast of store associates as well as Victoria Beckham, Pat McGrath, Marc Jacobs, Sabyasachi Mukherjee and Luar’s Raul Lopez.

Bloomingdale’s on the other hand gets a jump on the holiday season with the unveiling of its Christmas windows with a performance by Billy Porter. The store has expressed the alignment of Porter’s personality and mission of diversity and inclusion with Bloomingdale’s ethos and “B [folo] The Change” social purpose campaign. An assortment of 150th-anniversary items is showcased in the store windows, while the Little Brown Bear, an icon the company sells to help support the Child Mind Institute, is featured in another window, in an oversize, gold-coloured version.

One of the many in-store highlights is “The Carousel,” where shoppers can find “The Greatest Gifts” that have been curated by Ayesha Curry. The assortment includes more than 16 diverse, woman-owned brands, including Curry’s lifestyle brand, Sweet July.

Bergdorf Goodman and Bloomingdale’s go over the top for Christmas - Bergdorf Goodman

Bergdorf Goodman and Bloomingdale’s go over the top for Christmas - Bloomingdale's

What: Business consultancy Caci has found that over half of British shoppers believe that online shopping is cheaper than physical retail.

Why it is important: The study has revealed that British shoppers think online retail is cheaper than physical, a behaviour that could impact the performance of retailers this holiday season.

In Caci’s survey, 56% of respondents had perceived online as cheaper, while 36% said they would be shopping more in-store this Christmas. The consultancy agency tied the behavioural shift with the rising cost of living. While there may be strong footfall, Caci believes retailers could see basket sizes below expectations. Physical retail should not be underestimated, yet past research from the agency has revealed an uptick in online sales within a store’s catchment area.

Finally, 50% of those surveyed reported that they would visit the same stores as the previous year for their Christmas shopping, emphasising the value of customer loyalty. 36% of respondents have already begun Christmas shopping to spread the budget.

Study finds Brits believe online shopping is cheaper than in-store

What: Monetising store surface at Walmart is seen as a logical way to generate new streams of revenue.

Why it is important: Such an approach is not novel per se, but in the way it is implemented, thanks to the use of tech and legal flexibility to make access to in-store concessions scalable to many companies and almost fully automated.

Walmart stores across the US will now allow small businesses to rent retail space, thanks to a partnership with pop-up shop marketplace platform Popable. The start-up will pair a local participating Walmart store to a corresponding company listed on the platform. Leases will be short-term, from one month to a year, with terms negotiated directly between the brand and the store.

Walmart is exploring new ways of generating revenue streams. For instance, it has also launched Walmart Creator, a social commerce platform making it easy for influencers to monetise shoppable products from the retailer.

Walmart launches short-term rental leases for SMEs 

What: Saks is teaming up with TerraCycle to launch its Saks Beauty Recycling programme for beauty containers.

Why it is important: Across Saks.com, Saks Fifth Avenue stores and the US, the new recycling initiative will enable customers to recycle empty haircare, skincare and cosmetic packaging from all brands by dropping them off or sending them by using prepaid shipping labels.

The packaging waste will be collected and sorted for processing to become new raw materials to be transformed into furniture, gardening equipment and other products.

Saks launches beauty recycling

What: The former CEO of Federated had organised the sale of the company to Campeau in 1988.

Why it is important: He has been one of the most instrumental person in the concentration of the US retail market during the 20th century.

Howard Goldfeder, who rose the ranks from the training executive program at Bloomingdale's to chairman and CEO of the former Federated Department Stores Inc, passed away at 96. He was instrumental in organizing the sales of Federated to the Canadian company Campeau Corporation in 1988, which won over Macy’s at the time for the bid.

During his 7-year-long tenure at Federated, the company grew from $7.6bn to $11bn in annual sales, and even considered Walmart for acquisition at the time.

Howard Goldfeder, US department stores veteran, passes away 

What: Kohl’s is in search of a new CEO to execute its plans of staying the course of its strategy of driving sales in a promotional environment and uncertain landscape.

Why it is important: Kohl’s heads into the uncertain holiday season with declining profit, while searching for a new CEO following reports of Gass’ departure to Levi Strauss & Co.

The retailer’s customer has been hit hard by inflation leading to a 60% drop in net income from USD 243 million in 2021 to USD 97 million this year. Analysts had been bracing themselves for even steeper declines and had predicted 78 cents per share, 4 cents worse than the result.

Revenue for the three months ended Oct. 29 decreased by 7% to USD 4.3 billion from USD 4.6 billion.

Kohl’s reports 60% profit decline, looks for new CEO - Source 1

Kohl’s reports 60% profit decline, looks for new CEO - Source 2

What: The social messaging platform WhatsApp is launching a feature that will allow users in the UK to find, message and buy from businesses through the app.

Why it is important: Instead of having to look online and retrieve phone numbers from websites, users can now search and connect directly with businesses in the UK, providing a convenient way to quickly get assistance and make purchases.

Additionally, WhatsApp noted that it was also looking to potentially expand its payment feature, which it has recently launched in India to allow users to make a payment from a chat. The feature is first available for users in the UK, Brazil, Colombia, Indonesia and Mexico, and will allow companies using its WhatsApp Business Platform to apply the function.

WhatsApp launches feature for users to contact UK businesses

What: The largest US mall owner, Simon Property Group, has a strong outlook on brick-and-mortar retail.

Why it is important: The CEO of Simon Property Group believes that retailers need to invest more heavily in brick-and-mortar stores considering recent e-commerce sales declining.

Despite economic concerns, Simon Property Group reported resiliency with a 94.5% occupancy rate in Q3 as well as there has been very little slowdown for new store openings and lease renewals. The group also cites the numerous announcements by brands that will expand their store fleets along with many digitally native brands moving into physical stores or through wholesale partnerships.

Simon Property Group doubles down on malls

What: Macy’s, Inc. has announced its plans for S.P.U.R. Pathways (Shared Purpose, Unlimited Reach), a capital funding program to support underrepresented businesses.

Why it is important: Over the next five years, Macy’s projects to provide approximately 100 million dollars in capital for diverse-owned and underrepresented growth-stage businesses.

A third channel through a Momentus Capital loan program will provide an additional 100 million dollars. Businesses that participate in the S.P.U.R. program will have access to various tools, training and opportunities along with an advisory network to help with strategy, credit improvement, business plans, financial reporting, daily operating challenges, business strategy, opportunity evaluation and other personalized services.

Macy’s, Inc. partners with Momentus Capital to launch capital funding program

What: Even though the Shinjuku flagship aims for the stars, the lack of Chinese tourists is still heavily felt in Japanese department stores.

Why it is important: Isetan-Mitsukoshi is facing a situation where regional stores are struggling and the Tokyo flagships are doing extremely well. They might end up closing down some locations, just like what they did in China earlier this year, or in Thailand, in order to maximise their profitability.

In Japan, in spite of the reopening of the borders and the subsequent rise of duty-free sales, the absence of tourists from Mainland China is still felt. Chinese tourists represented in 2019 10m people,  i.e. a third of the total number of tourists entering the country, but they usually spent a disproportionate amount of money compared to the other nationalities.

It is evaluated that the Japanese department store market is currently trading -10% on the first 9 months of the year compared to 2019, however, in the case of Isetan-Mitsukoshi, the situation is a bit better as they are currently trading at +23.8%, with the Tokyo Shinjuku flagship even projecting to revert to the 2018 record year sales level (other regional stores are reported to be in a different situation as they currently trade at -18% compared to pre-Covid).

Analysts do not expect Chinese tourists to return before at least the second half of 2023, which is even seen as a very optimistic date.

Isetan-Mitsukoshi improves sales but feels the pinch of no Chinese tourists 

What: China continues to ease COVID-19-related travel restrictions; however, Barclays expects that the remaining restrictions will continue to hurt traffic and sales for luxury brands in the near term.

Why it is important: International travellers’ quarantine time has been reduced by two days and inbound flight bans have been cancelled, leading to travel searches for international flights to triple since the announcement. The release streamlines the process for business travellers and sporting-event participants.

Quarantine durations have also been cut for locally infected people from seven days to five. Despite the needed relaxing of travel restrictions for retail, predictions for fourth-quarter reports remain realistic, expecting rolling lockdowns amid increased cases in recent weeks.

Barclays expects the recovery to begin fully in 2023.

China lifts flight bans

What: The eBay ‘Luxury Exchange’ in New York’s Diamon District sets out to be a location for shoppers to have their jewellery, watches and handbags appraised, with the possibility to exchange them for items of items from eBay’s top luxury sellers.

Why it is important: Visitors to eBay’s ‘Luxury Exchange’ can appraise items, exchange items for products from eBay’s top luxury sellers, or use the on-site photo studio to list their items on eBay.

The ‘Luxury Exchange’ comes on the heels of the expansion of eBay's 'Authenticity Guarantee' from jewellery to sneakers, watches, handbags, and trading cards. The store reflects eBay’s daily practices of authentication, appraisal, and second-hand/resale commerce.

The location will be open during Jewellery Week in New York, on 16 and 17 November.

eBay opens ‘Luxury Exchange’ store in New York