What: Gap has announced its distribution partnership with Amazon Fashion which will offer a range of the brand’s stock on the marketplace’s US and Canadian sites.

Why it is important: The Gap group moves to engage with new customers and expand its channels to combat continued falling revenues and increased operational costs.

Gap will launch a selection of basic essentials across adult, teen, children’s and baby categories as part of its agreement to open a new distribution channel through Amazon’s services.

Gap launches through Amazon US and Canada

What: Mirakl, which engineers online marketplaces for retailers and brands around the world, has launched Mirakl Ads, a service meant to help businesses monetize e-commerce traffic.

Why it is important: Increasingly, retailers and brands are integrating marketplace formats onto their e-commerce websites to broaden their assortments with additional merchandise categories, brands and items, with the aim to generate more online traffic.

The service provides metrics on what ads are generating the best sales and helps businesses create more effective ad campaigns and direct ads to customers most likely to respond. A marketplace operator is able to serve up ads through the Mirakl platform.

The company also said Mirakl Ads is compatible with marketplace, drop ship and first-party e-commerce, and that it has established a team of retail media experts to help set up and scale campaigns.

Mirakl Ads will surface the most relevant sponsored products to the right customers, as well as streamline campaign management with automated campaign capabilities that leverage sales data and sellers’ store catalogues to determine which sponsored ads will generate the best engagement, while also offering real-time performance metrics.

The unified solution also eliminates the need for multiple logins, additional integrations and disparate budgets.

Mirakl launches service to monetize e-commerce traffic 

What: Nordstrom is partnering with Morehouse College, a Historically Black College and University (HBCUs) in Atlanta, to launch product management courses along with a mentorship programme for students.

Why it is important: The courses, which will be available within the Atlanta University Center Consortium and the broader regional network of higher education schools, will focus on product management with an emphasis on technology to drive diversity in the sector.

Product management, according to the senior director of engineering at Nordstrom Inc., is one of the fastest growing roles in technology which is proven to be critical in enhancing consumer experiences.

The partnership is the latest initiative around growing diversity and developing careers that Nordstrom has launched with HBCUs.

Nordstrom launches college mentorship programme & product management courses

What: Frasers Group has increased its stake in N Brown, an online fashion retailer, by 5.04%.

Why it is important: One month after its initial buy-in to N Brown, Frasers has increased its stake in the online fashion retailer by 5.04%, adding to the list of companies that the group has been investing in.

N Brown’s revenues dropped 4.6% (347.4 million pounds in Q3), while its pre-tax profit dropped 82.4% to 4.3 million pounds. It joins a growing number of struggling retailers Frasers Group has bought stake in. Frasers has recently acquired Missguided, Studio Retail and ISawItFirst, while it continues to increase its stake in Hugo Boss.

Frasers Group ups stake in N Brown

What: After introducing its credit card in partnership with NewDay, John Lewis has issued an apology due to issues surrounding the difficulties to navigate the application process.

Why it is important: Originally a partnership with HSBC, the replaced partner for John Lewis’ credit card has proven to be inadequate as customers complain about needing to reapply, being declined and having their credit limits reduced.

In response, numerous changes to the process to accommodate the different application requirements have resulted in manual underwriting and ultimately a bespoke process for customers to apply for the John Lewis credit card. A dedicated helpline has also been established.

John Lewis apologises for problems surrounding its credit card

What: Due to Farfetch ending its operations in Russia and being hit by the COVID-19 restrictions of China, the company posted a net loss of USD 274.9 million in the third quarter.

Why it is important: Compared to earnings of USD 769.1 million a year ago, Farfetch’s Q3 results left investors feeling antsy and sent shares of the company down 9.7% to USD8.25 in after-market trading on Thursday.

Farfetch’s third-quarter revenues rose 1.9% to USD 593.4 million, an increase of 14.1% in constant currencies. The gross merchandise volume slipped 4.9% to USD 967.4 million, which would have been an increase of 4.2% in constant currencies. Farfetch’s active customer count for the quarter grew by 8.6% to 3.9 million from a year earlier. And gross profit margins increased 44.9%, and adjusted losses before interest, taxes, depreciation and amortization tallied 4.1 million.

Farfetch shares drop after posting Q3 report

What: Lotte Shopping has signed a contract with British-based retail tech company Ocado to become a top online grocery mall in Korea.

Why it is important: To capture the 135 trillion won market for online grocery in Korea, Lotte plans to invest 1 trillion won in smart logistics and adopt the Ocado Smart Platform (OSP) to all its e-commerce sector operations.

The OSP uses automated customer fulfilment centres (CFCs), self-developed robots, artificial intelligence and big data to carry out rapid and accurate delivery. Lotte Shopping plans to build six CFCs over the next eight years and make changes to its mobile shopping platform by collaborating with Lotte Department store.

Lotte partners with Ocado to become best online grocer in Korea

What: JD.com Inc. net revenues hit 134.2 billion dollars in the Q3, an increase of 11.4% compared to 2021’s Q3 results.

Why it is important: Net service revenues increased by 42.2% in the third quarter, and annual active customer accounts increased by 6.5% to 588.3 million.

The operating margin of JD Retail before unallocated items for the third quarter of 2022 was 5.2% compared to 4%.

JD.com revenues increase 11.4%

What: This time, a federal court in Missouri is suing the Swedish fast-fashion company for misleading ‘green’ claims, which it believes “illegally and deceptively” seek to capitalise on consumers’ desires to be sustainable.

Why it is important: Due to increased consumer awareness regarding climate issues, H&M’s false and misleading claims are being viewed as a deception to convince consumers to buy its Conscious Choice products.

The federal Missouri court filing iterates the misrepresentation of products and highlights the premium price H&M charges for its Conscious Choice products, clearly demonstrating that capitalises on the deception of consumers.

H&M sued again for greenwashing claims

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