What: Ralph Lauren and Burberry continue to dive deeper into gaming through phygital activations through Fortnite and Minecraft.

Why it is important: Polo Ralph Lauren has designed in-game clothing for Fortnite which it will release as physical products in-store as well. Burberry is working in reverse as they transform garments into digital skins that are modelled on their physical capsule collection.

In Burberry’s case, a new virtual world will be accessible via the Minecraft marketplace. Ralph Lauren will host a virtual Fortnite tournament and a Twitch Livestream.

Ralph Lauren has also reimagined their logo by placing the brand’s polo player on top of the Fortnite llama logo.

Fashion brands continue to push phygital activations - Burberry

Fashion brands continue to push phygital activations - Ralph Lauren

What: Frasers has purchased over three million shares of common stock, representing 4.3% of Hugo Boss’ entire share capital, along with 21.1 million shares via the sale of put options, representing 30.3% of share capital.

Why it is important: Frasers continues to aggressively purchase stock in its acquisition strategy, with Hugo Boss representing the potential to widen the group’s reach within the premium market.

In addition to raising its Hugo Boss stake to approximately one billion euros worth of shares, Frasers’ stake in Mysale has also grown to over 94% of shares.

In 2022 alone, Frasers has acquired Studio Retail, Missguided, Sneakerbou and I Saw It first. Potential acquisitions may be seen following its recent purchase of stakes in N Brown, Gieves & Hawkes and Asos.

Frasers continues to raise stake in Hugo Boss

What: Chilean retailer Falabella posted its third-quarter report showing a net loss of 24.87 billion pesos (25.7million dollars) compared to its 183-billion-peso profit in 2021.

Why it is important: Hit by a decrease in margins and an increase in expenses, Falabella reported a net loss of 25.7 billion dollars despite its net revenue growing 2.4% (2.97 trillion pesos).

Falabella posts net loss of USD 26 million in Q3

What: To attract Chinese millennials, Alibaba has used the “single day” occasion to celebrate five years of the Luxury Pavilion by expanding its metaverse and liveshopping initiatives.

Why it is important: With 67% of their customers being Chinese millennials, Alibaba’s Tmall Luxury Pavilion has addressed the best ways to engage with this new generation by utilizing their virtual influencer Timo who will highlight products of various partner brands, along with 3D digital collectables.

Customers have access to the Pavilion’s Meta Pass which gives them priority on certain product releases and events. The Luxury Pavilion also incorporates various levels of liveshopping with some events open to all customers and other invite-only events targeted to select members based on platform data.

Alibaba’s Tmall Luxury Pavilion has benefited from the strong repatriation of Chinese luxury consumption as it saw a 153% acceleration in the number of active customers between 2019 and 2021.

Alibaba’s Luxury Pavilion mixes metaverse and liveshopping

What: JCPenney owner, Simon Property Group, has been dragged down in the third quarter following costs linked to the beauty launch for JCPenney, declining y-o-y sales and the group’s investment in Reebok.

Why it is important: The Simon Property Group owner remains confident in the mall business as customers return to stores and occupancy rates increase yet analysts are uncertain about the group’s recent investments dragging down the overall Q3 report.

While the CEO has reported that the 2020 purchase of JCPenney is providing a 60% ROI, it would remain valuable even if that number falls leading some to ask questions. Simon Property Group claims that e-commerce has been flatlining, yet the US Department of Commerce has reported that e-commerce’s percentage of total sales is equal to 2021 at 14% which is still higher than pre-pandemic numbers.

The group reports that its “better brands” such as Brooks Brothers, Lucky Jeans and Nautica are performing well, although specific results are not released and thus cannot be fully substantiated.

JCPenney posts poor Q3

What: On the day of Christmas décor illuminations, inter-union employees of Galeries Lafayette protest for a reevaluation of their wages.

Why it is important: Following the department store’s achievement of exceeding 1 billion in sales, 500 Galeries Lafayette union workers gathered in the Boulevard Hausmann location to demand a reevaluation of wages with the intention continue the movement on Black Friday should the department store chain refuse their negotiations.

The store on Boulevard Haussmann is the spearhead of a network of 57 points of sale in France, of which 19 units are directly operated and 38 addresses run as franchises.

Inter-union workers strike in Paris department stores

What: Marks & Spencer has acquired the intellectual property rights of the fashion personalisation website Thread.

Why it is important: Marks & Spencer’s co-chief executive expects that this addition to the retailer’s current personalisation offer will help boost sales by 100 million pounds a year.

Thread collapsed into administration, leading to a pre-packed deal providing Marks & Spenser with source codes and algorithms that the retailer will integrate into their website to improve clothing recommendations for size, style and budget.

As well, M&S will hire 30 of Thread’s staff, including founders Kieran O’Neill and Ben Phillips.

Marks & Spencer acquires Thread’s technology for personalisation

What: Harrods is investing heavily in destination dining through the property, having opened a handful of notable dining and drinking spots in the past year and a half.

Why it is important: Many retailers are leaning into restaurants to attract customer traffic and save high-end shopping venues, but Harrods is taking it to another level with its highest-profile dining spot Studio Frantzen, slated to open on Nov. 28 on the store’s top two floors.

The restaurant is the first UK outpost for Bjorn Frantzen, one of the few chefs in the world with two restaurants with three Michelin stars: his eponymous flagship in Stockholm and Zén in Singapore.

In 2024, Harrods will become home to Dave Pynt, another chef hailing from a Michelin-starred restaurant and owner of Singapore’s famed barbecue spot Brunt Ends.

Following Harrod’s other successful F&B initiatives, such as the inaugural Jimmy Choo Café and Europe’s first Tiffany Blue Box Café, which scored 1,100 bookings in one day, success is almost guaranteed for Studio Frantzen. In a little over 24 hours after opening reservations, Studio Frantzen logged some 1,500 bookings from all over the world, yet the restaurant maintains that walk-ins will be accepted.

Harrods restaurant sales are up 44% for the first three quarters of this year, compared to the same period in 2019.

Harrods bets big on fine dining destinations

What: According to Bain & Company and Altagamma’s most recent study, the luxury goods segment will continue to expand until 2030 despite global political and economic uncertainty.

Why it is important: The study concluded that the global luxury goods industry is projected to achieve a market value of 1.4 trillion euros in 2022, up 21% compared to 2021.

Revenues are projected to climb to 353 billion euros, a 22% increase between 2021 and 2022. However, personal luxury goods are expected to see slowing market growth of around 3-8% in 2023. Analysts remain positive that luxury will be resilient to recession unlike during the 2009 financial crisis with growth of 60% by 2030 and a potential increase of 550 billion to 570 billion euros compared to 2022.

China will be a key factor for the fourth quarter performance of 2022 and the growth of the luxury market. As well, brands and retailers focused on this segment will need to prioritise ESG, creativity, agility, technology and data.

Global luxury goods market to reach 1.4 trillion in 2022

What: Fiona Westenberg is becoming head of the Oberpollinger in Munich as General Manager for the KaDeWe Group department store.

Why it is important: Fiona Westenberg, former Head of Sales for all fashion areas at KaDeWe since 2016, will replace Alexander Repp as General manager, while he moves to Oberpollinger’s Swiss sister company Globus for his new role as Retail Director.

Oberpollinger welcomes new boss

What: In the high-end shopping centre ION Orchard, Gucci Beauty has unveiled its first store.

Why it is important: The beauty boutique opening follows Kering’s Q3 results showing single-digit growth for Gucci, leading to continued efforts to revitalise the brand, which generates more than half of Kering’s total revenue despite now being below the performance of the group’s other brands.

Gucci is focusing on acceleration through its relaunch which centres around timeless products and gaining greater visibility in the Asian markets. Coty has announced that a second Gucci Beauty store will open in 2023.

Gucci Beauty opens first boutique in Singapore

What: The corporate offices for Louis Vuitton will add a chocolate shop and gift store while highlighting the brand collaborations with artists in the new exhibition space.

Why it is important: Louis Vuitton is adding a commercial space to their corporate office building that includes the arts and hospitality.

Dubbed the LV Dream space, the headquarters of Louis Vuitton will include a café, gift shop, a chocolate shop run by Maxime Fédéric and an exhibition space to highlight artistic collaborations of the brand. The exhibition space will be open seven days a week offering interactive experiences and a deep dive into the brand’s various partnerships.

Visits are free but must be pre-booked through the Louis Vuitton website while access to the café, chocolate confectionery and gift shop will be accessible without a reservation.

Louis Vuitton headquarters adds café and exhibition space

What: Central Group and Signa have opened ‘Lamarr’, a luxury department store inside a landmark building in Vienna inspired by Austrian icon Hedy Lamarr.

Why it is important: The Lamar department store, set to open in 2024, will be the fifth department store of the KaDeWe group, joining KaDeWe in Berlin, Oberpolliger in Munich, Alsterhaus in Hamburg, and Carsch-Haus in Dusseldorf.

The building has been designed by architecture firm OMA and is in one of the most bustling shopping destinations in Vienna on Mariahilfer Straße boulevard. The department store will total 20,000 square metres of retail space across eight floors with memorable quotations from Hedy Lamarr decorating the walls and elevators. Along with international and local brands, service components will include medical services, a spa, events and art exhibitions.

In addition to the Lamarr, the Thompson Vienna hotel and the 1,000 square metre rooftop park are currently under construction, which will allow tourists to enjoy terrace seating in the gallery garden that connects the hotel to the store.

Central Group and Signa unveil luxury department store in Vienna

What: Germany’s biggest department store, Galeria Karstadt Kaufhof, is filing for bankruptcy protection again to save the mid-market chain.

Why it is important: For the second time in two years, René Benko, owner of Galeria Karstadt Kaufhof and co-owner of Selfridges, is filing for bankruptcy protection having already taken two bailouts from the German government worth 680 million euros.

Berlin politicians are reluctant to provide a third bailout without participation from Benko and his Signa Group.

The mid-market chain Galeria Karstadt Kaufhof first filed for creditor protection in April 2020 when the pandemic forced store closures. This time around, close to a third of jobs will be slashed as part of a planned restructuring due to overly complicated bailout terms.

Benko is facing more than scrutiny caused by the Galeria restructuring. The Signa headquarters was raided by the Austrian police in October as part of an anti-corruption investigation surrounding Benko’s political connections in Vienna and the overall financial operations of his business empire. Past criticism has insinuated that Benko’s acquisition of Galeria has been fueled by the underlying high-value real estate as it contrasts the rest of his portfolio of exclusive, luxury developments./nbsp]

For the moment, Benko has not been charged with any wrongdoing.

Galeria Karstadt Kaufhof files for bankruptcy protection again

What: Peek & Cloppenburg is using the Christmas season as an opportunity to launch its new brand identity as part of the transformation initiative to become Europe’s leading multi-brand omnichannel fashion retailer by 2026.

Why it is important: Peek & Cloppenburg will begin focusing on the ampersand (&) in marketing to highlight its goals of being an internationally hybrid brand that creates congruent worlds online and offline.

The Christmas campaign entitled “Merry Moments” tells the story of an unforgettable Christmas through an episodic approach. Characters will have outfit changes through jump cuts triggered by different audio which finally leads to “a suitable look for everyone at every moment.”

The episodes have been running on major broadcast stations across Germany and Austria with plans for print, street, online and social media placements to come.

Peek & Cloppenburg unveils new brand identity

What: ‘What Goes Around Comes Around’ (WGACA), a New-York based reseller, is operating an Amazon storefront selling one-of-a-kind vintage luxury bags.

Why it is important: Amazon continues to grasp at the luxury market and further validate its fashion offer through pre-owned luxury.

WGACA has listed Hermès and Chanel bags priced between 20,000 and 12,000 dollars. While LVMH has openly stated its feelings towards Amazon’s business being a bad fit for its brands, reseller companies can open luxury pre-owned stores bringing the products to the platform.

Chanel and Hermès now available on Amazon

What: Shein goes physical in the Philippines.

Why it is important: After having conducted similar experiences in the West, they are testing markets with radically different cost structures, population demographics and economies.

The pop-up opening took place last week at Ayala Malls Manila Bay, featuring a fashion runway, partnerships with Alipay+ and the mall’s e-wallet partner GCash alongside an appearance by Filipina actress Belle Mariano, a newly appointed local brand ambassador.

Shein opens pop-up in the Philippines

What: John Lewis released a number of newly thought-out sustainability commitments in its new report ‘Plan for Nature’, in which they said they are working towards cracking down on its pledges to protect and restore nature.

Why it is important: The company is acting where they can to make the biggest impact, with their principles being applied to every product they sell, and products made with sustainable values are accessible to all their customers.

John Lewis Partnership will be investing GBP2 million to fund ecosystem protection and regeneration projects in the UK and India through an exclusive partnership with Worldwide Fund for Nature.

They will be funding sustainable water management programmes, committing to zero deforestation across its own-brand product supply chain and incorporating natural elements into all key new build and renovation projects.

By 2025, the company said it will ensure all key raw materials in its own-brand products will be from more sustainable or recycled sources.

John Lewis’ refreshed sustainable commitments

What: A Crossrail along the Elizabeth Line in London is expected to bring more visitors to Bond Street Station as well as to Oxford Street, Marylebone and the West End.

Why it is important: As the holidays approach, the opening of the Crossrail at Bond Street is expected to provide a significant boost for the retail and hospitality sectors.

With an estimated 140,000 daily passengers and significant cuts to journey times for local and international visitors, the Crossrail is expected to positively impact the footfall and shopper numbers in the wider West End.

Crossrail opening to boost retail

What: US tourists splurge in Europe causing Kering sales to rise 23% for the third quarter.

Why it is important: Due to the weakness of the euro in comparison to the US dollar, American tourists have been spending more on luxury in Europe which has helped keep Kering’s performance high despite inflation and uncertainty.

The strength of Western Europe has been demonstrated as this region posted a 74% jump for the group. North America was up just 1%, while Japan saw a 31% increase. Overall Asia-Pacific remains subdued with 7% growth due to ongoing restrictions to prevent the spread of Covid-19.

Since the beginning of 2021, Kering’s share price has fallen 35% in light of the looming recession, inflation, supply chain disruptions, lockdowns in China and war in Ukraine.

Tourism raises Kering’s sales in Europe for Q3

What: There is a traditional season for leadership changes in Korea, however this year a ‘perfect storm’ adds up to the context.

Why it is important: All 3 leading companies are going through some difficulties or challenges, at a moment when the Korean market is buoyant and customers are extremely demanding.

The end of the year is a traditional time for executive reshuffles in Korean department stores management; however, this year there is additional fever at Shinsegae, Lotte and Hyundai.

At Shinsegae, a crisis provoked by its Starbucks Korea subsidiary endangers the current CEO and the whole leadership structure. At Lotte, many CEOs of business units are due to leave in March 2023.

Finally, at Hyundai, a fire at the Daejeon unit last September has already started to provoke an executive reshuffle.

Executive reshuffle season in Korean department stores 

What: Frasers Group has bought the Australian sneaker and streetwear retailer Sneakerboy

Why it is important: The Acquisition further strengthens and diversifies Fraser’s luxury proposition while supporting the continued offering of Sneakerboy through Frasers’ retail expertise and scale.

The group’s purchase of Sneakerboy is part of a wider strategy to increase Frasers’ presence in Australia and the surrounding regions.

Frasers Group buys out Sneakerboy

What: Perspectives on the type of Chinese customers coming back to international cities.

Why it is important: They will have changed by nature, and the retailers who anticipated that change will be the best placed to reap the benefits of their return.

It has been two years now that Chinese tourists have refrained from travelling internationally, due to the Covid-19 pandemic and its associated travel restrictions. According to Jing Daily this has translated into shifts in consumption, and it seems that for now, affluent customers favor online and domestic purchases over far-flung travels:

-    They are more likely to travel domestically, having formed that habit for the past 2 years and encouraged by new infrastructures (Hainan for instance),

-    They are looking for health and self-care rather than for pure retail experience,

-    They favor sustainable initiatives, and prefer extra time over money.

However, the study also mentions that, provided all boxes are ticked, they will not be averse to lavish spending.

When will Chinese tourists be back?

What: Nike customers will be able to link their Nike membership to their JD Sports or Zalando accounts to access member-only perks.

Why it is important: The partnership is mutually beneficial as JD Sports and Zalando will be able to offer European shoppers a wider range of products and services while Nike receives greater data on its customer base.

Nike previously tested this concept by partnering with Dick’s Sporting Goods in the US last year which had proven to be an effective way to serve customers and build closer relationships.

As an incentive to participate, shoppers who link their accounts will be notified of new product drops in advance as well as have access to exclusive items and new digital experiences.

Nike integrates digital services with Zalando and JD Sports