What: Dillard’s reported first quarter 2021 sales of USD 1,328.5 million, an increase of 73% over the previous year.

Why is it important: The strong sales and earnings performance indicates that customers returned to shop following the pandemic.

Last year due to Covid-19, customers were forced to stay at home. However, as the warmer weather arrives, vaccinations increases, and stimulus money releases, Dillard’s sales increased over 2019 levels.

In addition, Dillard’s limited-edition capsule collection which was developed by Kimberly Whitman for Antonio Melani will make shopping even more interesting as it features feminine prints, strong colors, and dresses for entertaining.

Dillard’s is expected to have strong selling and earning results in the second quarter as customers are attentively returning for their social occasion needs.

Dillard’s Beats Expectations And There’s More Good News To Come

The department store will open ‘VR Pangyo Land’ in its Pangyo branch wher customers can experience a 360-degree virtual reality department store. At the VR department store, customers can virtually visit around 50 locations throughout Hyundai Department Store Pangyo’s 11 floors.

Among them, customers can visit 14 virtual stores, where they can access a ‘VR Showroom’ to peruse available items and purchase them at Hyundai Department Store’s online shopping mall.

Hyundai Department Store Pangyo to Offer VR Shopping 

What: Mental health services are to be found at US CVS, Rite Aid and other chains.

Why is it important: While seeking to offer more services to customers, US drugstore chains are now offering on site or remote counselling.

CVS, the largest retail pharmacy in the United States, has added licensed clinical social workers trained in cognitive behavioural therapy to 13 locations. The providers will offer mental health assessments, referrals and counselling either in person or via telehealth, and this spring the company plans to expand to 34 locations in those same regions.

CVS is just one of a growing number of retailers who are recognizing the unmet need for mental health providers and hoping to fill the gap. Walmart announced it is acquiring MeMD, which offers online medical and mental health care. Walmart currently provides counselling via Walmart Health, a health centre located in a separate building alongside Walmart Supercenters. In addition, Rite Aid is piloting teletherapy in the “virtual care rooms” of 13 stores. And Walgreens is facilitating therapy appointments via the company’s web platform Walgreens Find Care, which connects customers to teletherapy from BetterHelp or Sanvello. Walgreens also offers free access to online mental health screenings through a partnership with Mental Health America.

Pricing options without insurance range between USD 129 for an initial assessment to USD 69 for a 30-minute session, with many options in between. At Walmart, the initial therapy session is USD 60 and the 45-minute follow-up sessions cost USD 45, according to the company’s website.

Pharmacies Are Entering the Mental Health Market 

The retailer just launched a curated collection of products that can enhance sex life and improve body positivity. In addition to toys to use with a partner or by yourself, the new offerings include shaving products, massagers, lubricant, and more and the majority of featured brands are female-led. There’s Dame, which specializes in ergonomic, inclusive vibrators (their suction toy, available in Bloomingdale’s new sexual wellness shop, is a top seller), created by Alexandra Fine and Janet Lieberman, body hair care company Fur, founded by Laura Schubert, and Maude, a modern minimalist line of goods for before, during, and after sex, dreamed up by Eva Goicochea.

Prices for items in this new shop-in-shop start at USD 10 (for a travel-friendly bottle of lubricant) to USD 200 (for a cleverly designed, body-hugging vibrator), so there’s a little something for every need and price range.

Bloomingdale's Sexual Wellness Shop Is Filled With Female-Run Brands

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What: The department store has renewed its commitment to its Herald Square flagship with USD 235 million of private investment in the surrounding neighbourhood.

Why is it important: To achieve these upgrades, Macy’s will leverage its underlying Herald Square real estate to build a commercial office tower above its iconic flagship store.

The retailer’s plan would upgrade Herald Square’s transit infrastructure and public realm into a pedestrian-friendly urban space with upgraded subway access, improved transit connections and ADA-accessible elevators.

Macy’s said the plan is expected to generate USD 269 million annually in new tax revenues for New York City, support 16,290 annual jobs and spark USD 4.29 billion in annual economic output.

Macy’s Announces Herald Square Upgrade 

This marks the company’s second straight year of losses, following a loss of JPY 11.19 billion (USD 102.4 million) the previous year. Meanwhile, net sales were down 27.1% and operating loss hit JPY 20.98 billion (USD 191.9 million).

The group expects that while net sales will drop a further 45.2% during the current financial year, it will generate a profit of JPY 1 billion (USD 9.1 million).

Sales of value-added, big-ticket items such as luxury brand goods, watches and jewelry have been favourable, particularly at its Isetan Shinjuku and Nihonbashi Mitsukoshi flagship stores in Tokyo. Thanks to both revamped e-commerce site and new shopping app, Isetan Mitsukoshi said it achieved a yearly online sales total of more than JPY 30 billion (USD 275 million).

Isetan Mitsukoshi Holdings’ Annual Loss Totals $382 Million 

Isetan Mitsukoshi Holdings Records FY Net Loss of Over 40 Billion Yen 

What: The new private label, Ryegrass, aims to offer luxury styling at accessible prices.

Why is it important: The retailer raises the bar in its women’s private brand portfolio to offer customers more elevated, on-trend styles.

Ryegrass is the fifth private-label womenswear brand launched by J.C. Penney in the space of six months. These launches are part of a wider development strategy that has also seen the refresh its denim brand, activewear label and Liz Claiborne collection. According to the company, further additions will be made to its women’s private-label portfolio and broader brand offering throughout the year.

JC Penney launches elevated womenswear brand Ryegrass

What: Located on central Piazza Fiume, the store will be subjected to a radical remodeling to be fully disclosed in August 2023.

Why is it important: Mostly relying on local customers, the store will focus on the food hall, as well as on women’s shoes and beauty.

According to Rinascente’s business plan, Roma Piazza Fiume, which will host the collections of more than 500 brands, will generate EUR 50 million of net sales within five years from the end of the renovation.

Building owner Prelios SGR revealed the renovation agreement with Rinascente to restore the building was signed in April 2020, during the first lockdown. Despite Rome certainly being one of the most important tourist destinations in the world, the store on Piazza Fiume mainly relies on local consumers, which account for 98% of its around one million annual visitors.

The renovation, which will require an investment of EUR 37 million (EUR 23 million will be paid by Prelios SGR’s Megas fund, Rinascente will disburse EUR 9 million and concession brands will invest EUR 5 million to decorate their spaces), will address the facade, the interiors and the outdoor space around the building, including a garden.

A big focus will be put on the food hall on the last floor, as well as on women’s shoes and beauty. As the company traditionally does with its stores, Rinascente assigned the renovations of the levels to different architecture firms in order to create customized and diverse spaces.

In June 2020, the company, launched its e-commerce, which is currently available only for Italian consumers. The online store is still in a developing phase, and don’t carry all the concession brands yet. They should join soon, contributing to reach Rinascente’s five-year goal of EUR 100 million in sales.

In 2020, Rinascente saw its net sales decreasing 35%. The business is expected to return to pre-Covid figures in 2022. In 2019, the company generated net sales of EUR 800 million.

Rinascente Piazza Fiume Store in Rome to Be Fully Renovated by 2023 

What: Burberry, Louis Vuitton and JW Anderson are testing pop-up shops that pull in customers using tech like Augmented Reality and Virtual Reality.

Why is it important: In these uncertain times, going to a department store to do a pop-up is an easier and safer option.

Burberry’s new pop-up opens in Harrods with an AR experience that brings to life Greek Elpis statue in a Pokémon Go-style digital dimension. At Selfridges, JW Anderson has launched a pop-up created with Sharp End, a connected experience agency, that uses QR codes to trigger AR visuals like mushrooms growing, bees buzzing and flowers blooming. Louis Vuitton opened a pop-up in Paris, where customers can use the Vuitton app to tap into an AR experience interacting with animated mascots Zoooom with Friends, first introduced by Virgil Abloh for the Spring/Summer 2021 collection.

Despite easing restrictions in the UK and an initial reopening rush, footfall in the UK’s key shopping areas are still down, according to the latest weekly footfall monitor from Springboard, a retail data intelligence firm. The US, Italy and Sweden face similar challenges.

Pop-ups in department stores are proving to be especially popular, as many brands are hesitant to commit to longer term leases because of the uncertainty around when tourists will return, says Peter Mace, Cushman & Wakefield’s head of Central London retail, who specialises in luxury locations. However, large spaces have had “limited interest” compared to smaller premises because of the cost of fitting out a space.

New-era AR and VR pop-ups

What: Steen & Strøm has rebranded as Steen & Strøm 1797 following EUR 29.6 million refurbishment to reflect its heritage.

Steen & Strøm first opened in 1797 and is the oldest running luxury department store in the world. It is located in Oslo’s Promenaden Fashion District and comprises 135,625 sq ft over six floors of fashion, beauty, lifestyle and food.

The refurbishment includes a new store entrance, and a new beauty hall with a men’s grooming area and fragrance bar. The beauty hall will stock premium brands including Chanel and La Labo, as well as the first Dior Beauty Boutique in The Nordics.

Oslo department store Steen & Strøm relaunches

What: Nordstrom announced the launch of a new collaborative collection with Wildfang, a brand that challenges stereotypes and gender norms.

Why is it important: Nordstrom ventures into inclusivity through a new private label.

Launching under the Nordstrom Made brand 'BP.',  the collection is designed for women-identified customers. Each piece was carefully sized for a variety of body shapes. The collection ranges from USD 12 to USD 89.

The collection is part of an ongoing collaboration with Wildfang, which includes gender knowledge trainings for employees, product research, social responsibility initiatives and marketing research. Nordstrom is giving five percent of total sales from the BP. + Wildfang collection to Year Up as part of the collaboration.

Nordstrom launches collection with Wildfang

What: The opening of the men’s sports department is the final phase of a refurbishment that began in 2018, grouping all men's wear on one floor.

Why is it important: Harrods' newest menswear department, a 4000 sq. ft. space dedicated to sportswear, comes as part of a GBP 300 million restoration project.

Men’s Sports is located on the second floor, with the rest of men’s wear, and stocks gear for most activities, including cycling, yoga, golf and tennis. The space houses 20 brands, while there are nine permanent, branded shop-in-shops including ON Running, Lululemon (the first men’s only destination for the brand in the U.K.), and Rapha. There is also a lifestyle skew, with brands including Canada’s Reigning Champ, EA7, Fred Perry and Lacoste.

The nine shop-in-shops surround a centralized, multi-brand area that stocks merchandise from the Italian lifestyle brand K Way, Falke sports socks and compression wear from 2XU. There is also a pop-up space beside the permanent shopfits, and that will be occupied for the duration of 2021 by the Australian cycling brand MAAP.

Harrods Pumps Up Sports Offer, Finishes Men’s Second Floor Refurb 

What: Luxury demand soars, allowing the retailer to reduce net losses

Why is it important: Operating income for the January-March period rose 18.5% on-year to KRW 61.8 billion.

The operator reported net losses for the quarter ending in March that narrowed to KRW 40.6 billion (USD 36.5 million) from KRW 43.3 billion during the same period in 2020.

Lotte attributed this improved performance to demand for luxury goods in its department stores. The group’s discount and supermarket chains, however, are seeing less of a rebound. The company’s sales fell 4.8% to KRW 3.9 trillion (USD 3.5 billion) from last year’s KRW 4.1 trillion (USD 3.7 billion).

Lotte Shopping’s Losses Narrow as Luxury Demand Soars 

What: The department store is on the move, into off-price and new merchandise categories, and toward some fierce competition.

Why is it important: Expanding its off-price Backstage business is a short-term solution, is detrimental to the brand and won’t allow Macy’s to drive trade into the full-price business. The retailer should also look at Target when developing new product categories.

Macy's calmed investors this week with a first quarter performance that beat most expectations and a plan to rehabilitate its faltering business. Macy's now faces the thorny issue of making good on these plans, which send it smack into some stiff competition from mass merchants like Target and off-price masters like TJX and Ross.

Embedded in Polaris are several disparate moves: expanding its off-price Backstage business within its stores and in more stand-alone locations, with the goal of ending the year with 270 total; establishing smaller full-line stores at strip centres; retooling its website; expanding in-demand categories like home; and getting into in-demand categories like pet supplies, toys, wine, and health and fitness.

Macy's deeper venture into off-price and its merchandising expansion in particular make sense, but invite a host of questions. Macy's is expanding its Backstage operations not only within stores but also, increasingly, as stand-alone locations, opening 33 new ones in the first quarter and adding to its final goal.

"Off-price is a sensible pivot, and where Backstage stores have been opened in existing Macy's stores, the concept seems to do well," GlobalData Managing Director Neil Saunders said. "However, it does not drive much trade into the full-price part of the business. As such, it is only a partial solution and does not address all of Macy's underlying issues."

Going off-price has very short-term gains and long-term losses to whatever their identity is. It's a tactic to attempt to push some of their own stuff that would normally end up at T.J. Maxx. In fact, Macy's is eyeing Nordstrom, which says that customers who shop at both its full-line and off-price Rack stores are their best customers.

Macy's has to sell other merchandise, analysts also say. In fact, Macy's expansion into new categories pits it against mass merchants like Walmart, Amazon and Target, the latter in particular conquering new categories with private labels and partnerships, to the point where observers see Target as a fresh alternative to the department store. As a place of discovery, just like department stores of old were.

Where is Macy's going

What:  In spite of a record fine, Alibaba claims its fundamentals are still valid and efficient.

Why it is important:  Within all dangers that Alibaba might have to face, a state clampdown on data management would be a blow for the group which based its business model on a very efficient data management process.

Alibaba has announced a record loss of EUR 975 million for Q1 2021, due to a fine of EUR 2.3 billion (4% of its total turnover) for anti-commercial practices. Without this fine, Alibaba claims it would have posted a profit of EUR 3.3 billion, and aims at convincing markets that the worst is now over.

There are however some issues that will need a further resolution:

• The group’s financial arm, Ant, is still struggling with regulators,
• Beijing’s approach to data, and potentially constraining regulation,
• The future of the group’s media empire.

Alibaba aims at achieving a turnover of EUR 119.2 billion in 2021, +32% vs. 2020 and the double of 2019.

After $260 Billion Slide, Alibaba Aims to Show the Worst Is Over

What: Fashion is picking up again in the US following the combined action of stores reopening, stimulus checks and vaccination process

Why it is important:  Low key fashion remains the norm: customers tend to favour “hybrid” products, mixing comfort with practicality. Formal fashion is not yet back on track.

American customers prepare to return to the office and have started to visit stores in that perspective, taking advantage of the safer situation, a need for change, and stimulus checks. This translates into close to pre pandemic footfall in stores (-3.5% during the April 5 week, compared with 2019) and increases in fashion items purchases.

However, this is not the return to high-ticket formal items: customers kept from the lockdown periods a taste for comfort, and want to keep on enjoy it. For instance, Randa Apparel & Accessories discovered that customers tended to stay in sweatpants and carry only a few credit cards when moving within a radius of less than 2 miles. If they travel farther than 2 miles, they put on pants and grab a wallet. This translates into new ‘hot’ items:

• Slippers with leather soles
• Cargo pants and wide-leg Levi’s jeans
• Waist cropped tops
• Sport sandals

These buying patterns have been observed across the board, including at Sak’s, Levi’s, Revolve.

Cargo Pants and Outdoor Slippers Are Hot, as Americans Return to Stores

What: The waning profitability of John Lewis stores.

Why it is important: John Lewis is taking dramatic measures to deal with post-covid and its huge shift to online retail.

The Financial Times argues that the shift of strategy at John Lewis will have a huge impact on geographical areas where stores are to be closed. It remains a question whether fitting smaller versions of department stores inside Waitrose supermarkets will be sufficiently attractive to customers. John Lewis has based its strategy on customer data which reveals that it is confident in the future of 34 of its department stores out of the 50 operating at the beginning of the covid pandemic.

John Lewis looks to a future away from the shop floor

What:  Now that there is light at the end of the tunnel, customers are back in stores, which changed significantly in the course of a year

Why it is important:  Since customers grew accustomed to many of the strategies listed here, the basis playbook changed with the addition of many must-haves (which used to be considered as gadgets prior to the crisis).

Retailers and brands had to rethink their operations during the Covid crisis and the consequent lockdowns. Now that there is light at the end of the tunnel, with some countries already experiencing a back to normal kind of situation, customers go back to stores, only to find that they have changed and massively adopted new features:

• Frictionless payment options: contactless, self-checkout,
• The store as a part of the digital ecosystem: kerb side pick up options, BOPI, store inventory available online,
• Safety protections considered as a must-have (gel, social distancing, new ways of displaying products) including when redesigning stores,
• Addressing local customers with a carefully curated product offer and marketing strategy,
• Reviewing the set up of the stores: since they are also here to serve as a local fulfilment platform, the net retail space is not king anymore, as back rooms increase to be able to serve that strategy,
• Private shopping increased in quantity and quality during the pandemic, and customers are now expecting this as a basic service,
• Stores are also ‘social hub’: since they had to find ways to stay open during lockdowns, including creative reasons not always linked to their primary activity, they acquired new savoir-faire and techniques that will prove key in making sure customers are coming in, and returning. Therefore, the store is confirming its central position in the digital ecosystems retailers and brands have built.

Take a Look Inside The Post-Pandemic Store

What: Hainan is growing fast and taking the share of the lion in terms of international luxury market shares

Why it is important: the Chinese authorities keep this growth under a very close watch, this Eldorado might not be risk-free for international brands.

To boost domestic consumption and increase the recuperation rate, China turned the island of Hainan into a duty-free shopping hub. Combined with the international borders closure, this results into Hainan being the epicentre of international luxury spending, with total sales amount expected to grow sevenfold by 2030. For now, 50% of sales are in beauty and cosmetic products, however hard luxury is growing strongly as well, from a third of sales now.

This is obviously fuelling international luxury players such as LVMH which announced that the Chinese market helped it not only overcome the 2020 difficulties, but post a growth in comparison with pre-pandemic levels of 2019.

However, the structure of the market, and the permanent control enforced by the Chinese authorities fuel worries within brands that they might loose control of their distribution, and encourage, unwillingly, the expansion of Daigous (parallel resellers).

Hainan ‘on fire’ as luxury’s centre of gravity tilts to China

What:  The largest fine in Chinese history of market regulation

Why it is important:   With these fine, Chinese regulators allow Alibaba to exit the crisis and save the face at the same time, which will allow public opinion to focus on the person of Jack Ma himself instead. It is also a signal that the Chinese government is ready to sanction even the largest and most successful companies if they start taking too much space.

Alibaba has been fined 4% of its total 2019 revenue for having abused its dominant position to force its suppliers to use its own technologies and platforms. This is the largest penalties ever issued in China.

Alibaba Fined $2.78 Billion for Monopolistic Behaviors in China 

What: A new fashion casualty of the Covid-19 pandemic

Why it is important: The group owns several contemporary brands that are represented both in their own stores and in department stores. The Covid-19 crisis consequences are already impacting mid-sized fashion groups, which will ultimately reverberate on department stores’ offer and their ability to sell fashion (one of their biggest contributor to margins).

The Collected Group, owner of fashion brands such as Joie, Equipment, Current/Elliott, filed for Chapter 11 Monday 6th April 2021. While it successfully overcame a first restructuring in 2018, due to a failed implementation of a business management system leading to disruptions in sales, this year’s Covid-19 crisis was a blow to the company. Retail revenue fell by 85% and wholesale by 70%, and the situation was worsened by the bankruptcy of sizeable vendors in the US and UK.

The restructuring plan comes after a failed attempt to sell the contemporary fashion group.

Fashion brand owner The Collected Group files for bankruptcy

What: Brookfield Asset Management buys out the full control of Brookfield Property Partners for USD 6,5 bn.

Why it is important: Mall management is getting under the full control of owners, who have in mind selling a part of their assets once the economy bounces back.

Last year, Simon Property Group bought Taubman Centers in a scaling move. Brookfield Asset Management just announced the purchase of the remaining shares in Brookfield Property Partners (including Brookfield Place mixed-use real estate project in Manhattan) for USD 6,5 bn. Their project is to position themselves on the market, control the brand proposition within each of their malls, as well as be in the best position to sell a part of their locations once the opportunity arises, in a similar posture to Unibail-Rodamco-Westield who announced to be getting ready to do so next year.

Brookfield’s $6.5 Billion Buyout Approved

What: During lockdown, U.K. businesses were rethinking commercial spaces and preparing for a surge in post-pandemic demand.

Why is it important: London high streets’ predicted shift to smaller, hyper-local and new commercial formats should be observed as an example of what might happen in capitals in the future.

The British economy is estimated to grow by 4% this year — and by 7.3% in 2022 — and much of that growth will be powered by British tourists, returning office workers, and the international rich who already own homes in the U.K., and are planning to spend their summer here.

Interestingly, Matt Farrell, managing director of Trophaeum, said that his company has not lost any retail tenants over the past 12 months, and it has been seeing demand from high-end restaurants seeking space.

Grosvenor Britain & Ireland is landlord to about 500 retailers. The company is willing to “selectively invest in tenants to help them pivot their businesses and grow post-pandemic”, showing confidence in the future of physical retail.

Anita Balchandani, partner at McKinsey, said that fashion and luxury sales will recover more quickly in the U.K. than in Europe due to the country’s rapid vaccine rollout. Balchandani believes that physical stores that know how to create a “relevant experience” will thrive. She added that “hyper-local” shopping will also be “a very dynamic and interesting space”.

Diane Wehrle, marketing and insights director at Springboard Research, believes that smaller high streets will benefit from the new hybrid working model that’s emerging, with people engaging more with their local neighbourhoods on the days they spend at home. She believes that once rental rates are “rebalanced” in traditional retail neighbourhoods, there will be ample room for new commercial formats, experiential and community spaces.

U.K. Businesses Lay Groundwork for Recovery 

What: J.C. Penny added Loom + Forge, a home brand, to its assortment of private labels.

Why is it important: The department store is returning its focus to the home sector through adding another private label to its portfolio.

J.C. Penny is adding Loom + Forge to its portfolio of private home brands including Fieldcrest and Linden Street. The home sector emerged as a big winner this past year as many consumers shifted to remote work and school.

The department store had originally shifted away from home and appliances in 2019 when the categories had underperformed. But under the guidance of new owners, the importance of private label launches in home indicate that the department store is looking to differentiate itself and create value for its customers.

According to Wlazlo, J.C. Penney’s executive vice president and chief merchant, 2020 was “a big year of strategic investment in our home portfolio.”  While Penney’s has long been known for soft bedding and bath products, Loom + Forge brings a bigger tabletop and decor dimension to the store. Penney’s did carry some of these products but not as expansively as it does now.

J.C. Penney debuts private home brand, Loom + Forge 

J.C. Penney’s Michelle Wlazlo Talks Private Brands and Fall Plans