What: Brian Solis from Salesforce shares his vision

Why is it important: In the future, the most successful retailers will marry technology with the customer experience, using new types of expertise.

Only if retailers stop thinking like retailers will they truly innovate. So says Brian Solis, a self-described “digital anthropologist and futurist” who joined Salesforce.com in March 2020 as its global innovation evangelist. The author of several books including X: The Experience When Business Meets Design (John Wiley & Sons, 2015), Solis recently shared his views on the future of shopping with McKinsey’s Cindy Van Horne. Here’s a summary of the interview.

The wow factor

The problem, when we imagine the future of retail, is that we tend to think about it as retailers. But there are other possibilities. For example, we could look at the most innovative amusement parks and translate that guest experience to the inside of a store or across other channels. Think about all the artistry and science that go into virtual reality, augmented reality, video games, or theme parks like Disney World. There’s a lot of “Imagineering,” as Disney calls it, that has to take place to marry technology with the customer’s experience in special ways that a company can then own and make a part of its brand.

By 2030, we’ll have sensors, computer vision, AI, augmented reality, immersive and spatial computing. How can these worlds play together in a way that is almost fantasy-like? It takes experience architecture—a new type of discipline and expertise. I wouldn’t be shocked if the best retailers in 2030 are employing game designers or spatial-computing designers.

Physical stores

Retailers can no longer just build fixed structures and rely on a business model based on, “How much can we squeeze out of this design before we need a remodel?” The business model should be about being agile, evolving, staying culturally relevant. It’s about reimagining space and flow.

Technology shouldn’t feel intrusive and suffocating. Technically, a retailer could know my name and my past transactions when I walk into a store and offer me new products and services. As technologies exist, the question becomes, “How do we use them?” It’s about creating magic. Great retailers, in the future, will make you feel like you’re in a special place, designed especially for you, so that you take time out of your life to go to that place because it’s aspirational.

Design and tech talents

Solis did some work with Westfield, the shopping-mall developer when it was launching an innovation centre and a lab in San Francisco. The company wanted to not just imagine the future of retail but also set the stage for the type of talent it wanted to attract. So it opened a collaboration hub and invited entrepreneurs to work there, which created energy and a sense of belonging. That’s one way to start thinking about the talent question.

In the 2000s and 2010s, Domino’s Pizza realized that it had to be a technology company first. How does a pizza company attract top software talent? By attaching innovation to the brand.

Retailers as experience designers Brian Solis on shopping in 2030

What: Tightening job market is forcing Walmart to create ‘careers’ for its employees.

Why is it important: The retailer’s making more of its workers full time as well as investing in a self-driving car company show ambition to seek dominance in e-commerce

The retailer’s exercise to build its e-commerce business follows its projection in February that its e-commerce revenue will surpass USD 100 billion in the next two years. Walmart said it plans to make more of its U.S. employees full time, resulting in roughly two-thirds of its U.S. hourly workforce becoming full time over the next year.

Drew Holler, senior vice president of Walmart U.S. People Operations, said: “our growing pickup and delivery business calls for us to create more full-time job opportunities as our stores increasingly operate as both fulfilment centres and retail spaces.” The move follows its investor meeting in February where the retailer said it was increasing pay for some 425 000 additional workers.

Walmart U.S. president John Furner also addressed the company’s investment in Cruise, the self-driving car company, describing it as an asset at a time when the company is fine-tuning its delivery mechanisms and striving to cut emissions by 2040. “As delivery has become a staple in our customers’ lives, we’re focused on growing our last mile ecosystem in a way that’s beneficial for everyone — customers, business and the planet.”

In E-commerce Race, Walmart Eyes Its Workforce and Delivery Tech 

What: Non-essential retailers in England and Wales can reopen their shops on 12 April.

Why is it important: Reopening plans include new brands and areas dedicated to lifestyle.

While Selfridges unveiled its new windows ahead of reopening, Harrods said it would launch new, headlining brand boutiques and pop-ups in addition to exclusive collections and launches. Harrods customers can also expect al-fresco dining experiences, exceptional retail theatre throughout the store and new collections and pop-ups from the world’s most sought-after brands.

Meanwhile, Fenwick will launch new clothing brands as well as a new lifestyle zone. New clothing concessions include Soletrader, menswear brand Boy London, and sustainable brands Ninety Percent and Colorful Standard.

At its Bond Street store in central London, Fenwick is launching The Studio – a wellness and lifestyle area on the lower-ground floor that will include a concession for bicycle and cycling-wear retailer Velorution and running specialist brand On.

Al fresco dining, a new wellness space and a vegan restaurant will also open at Bond Street store. Fenwick is also willing to support local independent businesses showcasing local artisans and producers.

Harrods and Fenwick reopening plans

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• Selfridges prepares for reopening

What: The company will gauge demand through a test period starting 15 April in the U.K. and 13 May in the U.S.

Why is it important: While rental services are a growing business, H&M’s one aims to boost job prospects.

One/Second/Suit is an H&M Man suit rental service offered to customers “so anyone attending a job interview can make a powerful first impression”. The retailer said the suits will be completely free for 24 hours.

H&M Man launches suit rental service

What: Anil Patel, CEO of HotWax Commerce, describes how a "store crediting framework" can bolster omnichannel sales.

Why it is important: A majority of retailers still view different shopping channels as completely separate departments in their organization.

As retailers and brands continue to accelerate their digitalization strategies, Anil Patel, CEO of HotWax Commerce, says they’re missing a key component to success: properly crediting and incentivizing physical stores at the unit level. Indeed, Patel found that very few brands have considered changing their store crediting policies to incentivize a company-wide adoption of their omnichannel vision, starting at the associate level.

Associates may view online sales as a threat to their job security and will likely attempt to sabotage the company’s initiatives unless they are brought into the strategy. Instead of reacting to that reality, retailers should anticipate that tension and create frameworks to eliminate it.

Most retailers aren’t deeply aware of their customer’s shopping journeys. Without the right technology in place, you won’t have the visibility into whether your online shoppers browsed in-store and vice versa. Studies also show that brands see an increase in online sales from regions where they’ve recently opened a physical location, which means your stores should be credited for participating in that revenue creation.

A store crediting framework is a policy intended to reward stores and its associates for driving or assisting sales (whether online or in-store). In the past, store crediting frameworks have been very straightforward and based on the assumption that online shoppers shop online and offline shoppers shop in-store. The first step to achieving a truly omnichannel approach is to eliminate channel-based performance reporting. Shopping channels should be irrelevant to compensation because it is ultimately irrelevant to the customer.

Studies have shown that a majority of retailers still view different shopping channels as completely separate departments in their organization, with their own P&Ls. For many retailers, implementing an omnichannel solution requires a paradigm shift and significant organizational change to eliminate or bridge channel silos and unify all staff members around the customer.

Why Store-Level Incentives Can Be Key to Omnichannel Success 

What: Amazon claims it is making it easier for customers to buy sustainable products through labelling them on its site, but critics are not convinced it is enough.

Why it is important: Amazon is hoping the programme will encourage brands to follow the actions of those already participating.

Amazon is expanding a programme that was launched in September that marks products as “Climate Pledge Friendly” if they have at least one certification from a number of organisations working on environmental and social issues.

Though consumers are showing increased interests in buying sustainable products, critics believe that the solution of lumping products into a broad category is not scalable or measurable. Overconsumption is fashion’s biggest issue and Amazon is an at-scale retailer that is trying to find ways to use its business model for good, while meeting its customers’ demands.

Amazon promises more “Climate Friendly” products.

What: Fast-food chains are closing more in-store restaurants as the Covid-19 pandemic accelerates the demise of a once mutually beneficial relationship.

Why is it important: The closures is a challenge for Walmart, which has long counted on revenue from restaurants leasing space inside its stores.

For years Walmart Inc. and large restaurant chains like McDonald’s enjoyed a mutually beneficial relationship. Those bonds have frayed as more shopping goes online and fast-food restaurants depend more on drive-through windows for sales, a feature Walmart locations don’t have.

McDonald’s is closing hundreds of restaurants located in the largest U.S. retailer’s stores, the last vestiges of a roughly 30-year-old experiment between the companies. Franchisees of Subway, one of the largest fast-food chains in the world, also say they are closing locations this year, citing diminished foot traffic and lower profits.

The closures also could pose a challenge for Walmart, which has long counted on revenue from restaurants leasing space inside its stores. By contrast, rivals like Costco Wholesale Corp. runs its own restaurant space selling inexpensive pizza and hot dogs; Target Corp. operates its own food-service space under licensing agreements with partners such as Starbucks Corp.

Walmart is working to find new models for its store restaurants, focusing more on meals to-go, delivery and joining with small regional chains that appeal to local shoppers. Walmart is also testing smoothie vending machines in stores.

McDonald’s is closing hundreds of its Walmart restaurants

What: Macy's has begun opening new Backstage locations, with plans for 45 shops within Macy's stores in 10 states this year, on the way to its target of 270 nationwide.

Why is it important: What may look like a good tactical move based on current trending could be a strategic misstep.

Macy's launched Backstage in 2015, as retailers in the segment consistently took market share from department stores. Macy’s is new to off price, and it's unclear how much the effort is taking away from full-line sales. The company is also facing competition from the more mature operations at Nordstrom Rack, TJX Cos., Ross and Burlington.

Being the largest tenant in U.S. retail malls, with 6.2% of total existing square footage, what does the move mean to Macy’s brand value or long-term sustainability? Some hard facts are summarized by Ameritrade Network:

• UBS is estimating 80 000 retail units (mostly clothing and accessories), or 9% of total stores, will shut across the country by 2026,
• E-commerce sales are expected to represent 27% of total retail sales by 2026, up from 18% today,
• Among the 1000 malls existing today, only a third are likely to have long-term viability and they are the most upscale properties,
• The 300 surviving malls will be up-market, experiential, and brand driven (undifferentiated products contributing to mall-fall), essentially the place occupied by the best department stores more than a century ago.

If some points ring true, Macy’s should leave the discounting to the discounters and improve the customer experience, presentation, visual merchandising, and service instead.

Retailers’ future also depends on appealing to Millennials, Generations Z, and the soon to be talked about Gen-Alphas: this represents even more reason for Macy’s to move to higher ground. Transparency, sustainability, humanity, and social justice are their target customer’s core beliefs.

Macy's Backstage opening 45 shop-in-shops 

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• Despite uncertainties, Macy’s foresees a bright future

What: The retailer wants to increase its presence in the retail market by creating noise with Lotte.

Why is it important: Three months after Shinsegae acquired a professional baseball team, the retail giant is making good use of it in marketing campaigns to improve the performance of its retail business.

Shinsegae targeted Lotte Shopping on Clubhouse platform saying "they will have to bite the bullet to catch us." Lotte reacted by putting an online banner on its shopping platform Lotte ON with a written message: "We will quietly meet SSG.com and defeat them”, referring to its baseball team Lotte Giants' game against Shinsegae’s Landers on 4 April.

Celebrating the Landers' first match in the Korean Baseball Organization league, Shinsegae's SSG.com platform launched discount events called "Landers Day" and "Landers Week." Lotte Shopping also started a month-long big sale promotion. This is the first time that Lotte Shopping has offered a discount promotion in collaboration with Lotte Giants.

This marketing strategy proved right. During Landers Day between 1 April and 4 April, E-mart's meat sales skyrocketed by 133.3%, year-on-year. Lotte Shopping's supermarket brand Lotte Mart also saw its sales soar in the wine and egg sectors by 104.8% and 101.4%, respectively.

Shinsegae, Lotte capitalise on baseball to enhance market presence

What: Macy's executives show great optimism during J.P. Morgan presentation.

Why is it important: Jeff Gennette, chairman and CEO of Macy’s said the department store “fundamentals” continue to improve, including margins through improved pricing analytics. There’s greater full-price selling, faster turnover, a healthy stock-to-sales ratio, a lower SG&A rate, and expense discipline. Genette cited an influx of new customers — 7 million in the fourth quarter — and an opportunity to capture market share, particularly in digital, to get to USD 10 billion by 2023.

Currently, compared to 2019, Macy’s sees the rate of increase in new customers at about 14% ahead, and that the company is spending 8% more. Digital remains very strong: it was up 24% in 2020 and accelerating in the first quarter of 2021. The company has been working on search relevancy, improving personalisation, simplifying pricing, promotions, the checkout experience, and providing new payments options, including Klarna.

Gennette stressed that Macy’s is selling more with less inventory, that regular price sell-through is up and average unit retail price is up about 7% this quarter versus the same period in 2019.

Macy’s store fleet transformation activities are focused on rightsizing the number of stores, making omnichannel investments in remaining stores, testing the potential productivity and profitability of smaller off-mall formats (Market by Macy’s, Backstage and Bloomingdale’s the Outlet) and monetising real estate assets wherever possible. Last year, Macy’s said it would close 125 “neighborhood” doors, and now has about 60 locations left to close.

With Backstage, Macy’s also growing off-price business, 45 in-store departments are planned this year, and there’s a resumption of opening freestanding Backstage stores. A handful opened for the first time in 2015.

To improve margins on digital sales, Macy’s has been developing ways to encourage store pickups to save on delivery costs, reducing the number of packages per order, and linking the best shipping offers more directly to the loyalty program and Macy’s proprietary credit card to reward bigger spenders.

Macy’s Inc. Sees a Brighter Light in a World of Uncertainty 

What: The pandemic stifled many fashion retailers, but some brands and merchants seized upon opportunities that opened up during the crisis.

Why is it important: Retailers are negotiating discounts on store lease as well as marketing support from landlords.

It’s less risky for big, long-standing retailers to open stores in the current economic climate, given their clout with landlords, their rapidly growing digital businesses that support brick-and-mortar operations, and the familiarity shoppers already have with them. Burlington Stores, Ulta Beauty, Urban Outfitters, Sephora, Athleta, Aerie, TJX Cos., Old Navy and Dollar General are among the retailers opening significant numbers of stores this year. They’re taking advantage of mall vacancies, landlords loosening up on rent and lease terms, and forecasts for the second half of 2021 that predict higher levels of shopper traffic. Malls already are seeing increased foot traffic as a result of all of those factors.

Pinko, the privately owned Italian fashion brand with about 260 freestanding stores and 1 500 shops-in-shop inside department stores around the world, opened a 5,000-square-foot in Manhattan’s SoHo district. It’s a playful, airy, three-story environment with a huge glass window for a full view into the store, exposed brick walls, open sales floors, lilac and fuchsia carpets, and an inflated purple man known as Peter Dance.

According to the company, 2020 was its first negative performance in 30 years. In 2019 Pinko generated sales of 220 million euros. “Then we obviously took a hit in 2020, but we are now aiming at 240 million euros for 2021, and we are confident we can achieve it,” said Emanuel Bianchi, Pinko’s chief marketing officer.

The Carini Group, a real estate brokerage, represented Pinko on the real estate deal. “We have negotiated lease terms for Pinko that are at a very significant discount from the overtenant’s lease, indicating continuing real estate savings opportunities for retailers planning expansions in New York City and in other major U.S. markets,” said Alex Carini, president and founder of the Carini Group. He said the yearlong agreement calls for USD 30 000 in monthly rent or 15% of sales value, whichever is greater.

In mid-March, designer Adam Lippes opened a “flagship” in Brookfield Place, the mixed-use complex for retail, dining, offices and events, situated by the Hudson River in lower Manhattan. “There was a lot of deliberation and conversations about the calculated risks,” Jeannie Yoo, the president of Adam Lippes. Yoo declined to divulge any details about the lease at Brookfield, though she did say, “It was not only about the financials. It was about the marketing support, the Brookfield name. They have a lot of experienced marketing and PR professionals.

Gene Spiegelman, vice chairman and principle of Ripko Real Estate, said that over the last year, Ripko has been in discussions with six to nine direct-to-consumer brands looking to have a brick-and-mortar location, but not ready to commit to traditional 10-year leases. More likely, they would go for three-to-five year leases with options to get out of the lease on a six-month notice, according to Spiegelman. “Some of these brands were showcased in Barneys or Saks, or hoping to be in Nordstrom,” he said.

Independents Open Shops Despite 

What: BoF sits down with Klarna CEO Sebastian Siemiatkowski to discover innovations in the path to purchase.

Why is it important: Buy Now, Pay Later options, which are set to grow at a 28% compound annual growth rate globally over the next five years.

The below news is a condensed version of a sponsored feature paid for by Klarna as part of a BoF partnership.

Founded in 2005 with a mission to offer a more flexible payment solution for shoppers online, Swedish tech company Klarna has rapidly evolved its scope and strategy to become a leading global retail bank, payments and shopping service. Today, it serves 90 million active consumers partnering with over 250 000. It counts H&M, Ganni, Charlotte Tilbury, Macy’s, Acne Studios and Sephora among its roster of clients.

BoF: What insights can you share on evolving consumer attitudes to payments?

Sebastian Siemiatkowski: The ongoing shift away from traditional credit cards and towards debit has been accelerated and further amplified by the pandemic. Credit card applications have dropped 50% while over USD 100 billion worth of credit card debt has been paid off.

Additionally, we’re tracking how the pandemic has accelerated the shift to contactless. Shoppers really love the Apple Pay and Google Pay experience, and we have launched a number of in-store initiatives, including virtual cards for digital wallets. This has facilitated alternative payment options within physical stores while also [answering] consumer demand for access to contactless solutions.

BoF: How is the relationship between Klarna and its merchant partners evolving?

Sebastian Siemiatkowski: I generally think about retail in two different pieces. One is around discovery and curation, while the other piece is purely the product and brand. When we are trying to help retailers, it’s about presenting their customers with useful, curated options. Historically, if you think about the Amex Platinum Card, part of the idea was the [customer] would go into a restaurant and the owner would think, “It’s a Platinum Card, so I need to ensure I offer my best wines and food.” At Klarna, we can help our retail partners curate more efficiently with the consent and interest of the consumer in mind.

BoF: How is customer data shared and actioned between Klarna and its partners?

Sebastian Siemiatkowski: At Klarna, data must be approached from a customer-centric perspective first, which then benefits our retail partners. When we process a transaction today, Klarna sees the SKU (stock keeping unit) data and full digital receipts, which allow us to create a much richer experience for consumers post-purchase. We can provide customers with additional value, such as target offers relevant to past purchases. It can [translate] into an increase in sales for our partners.

One further data aspect is our Wish List functionality on the Klarna app, where we allow customers to save their favourite items from across the internet. If a shopper has saved a pair of shoes, they will be linked to offers on the item or an indication on where to purchase if it has gone out of stock. The customers feel like their data is working on their behalf and that is valuable to our retailers.

BoF: What payment solutions and technologies should luxury brands prioritise?

Sebastian Siemiatkowski: In luxury fashion, we are seeing the most traction with our product offerings that allow customers to pay in three or four interest-free instalments, depending on the market they are in. Where we see a big opportunity is with our Try Before You Buy offering, where consumers pay nothing at the time of purchase and pay everything 30 days later. We’re seeing it in China, with Buy Now Pay Later accounting for 50% of Alipay’s total volume, and we have seen Amazon already beginning to experiment with [this solution] as part of the Amazon Prime Wardrobe offering.

Klarna’s New Growth Levers for Retailers 

What: Covid-19 restrictions affected its operations in Chile and Peru.

Why is it important: E-commerce posted record numbers reaching a gross merchandise value of USD 880 million in 2020, representing an increase of 140% when compared to 2019.

Chilean retail conglomerate Ripley reported that consolidated revenues had fallen from CLP 1 727426 million (USD 2.4 billion) in 2019 to CLP 1 499 541 million (USD 2.09 billion) in 2020. The company stated in its financial report that the 13.2% decline had been due to Covid-19 restrictions affecting its operations in Chile and Peru.

Even though the company’s retail segment recovered 28.8% during the fourth quarter of 2020, it wasn’t enough to offset store closures earlier in the year that contributed to a 10.4 per cent drop in 2020 when compared to 2019.

Chilean Retail Giant Ripley Reports 2020 Revenue Decline of 13.2% 

Financial Statements Ripley Corp 4T20

What: Online shopping vs. in-store shopping were discussed at the 2021 Altagamma Retail Insight webinar.

Why is it important: Despite the increasing importance of online shopping, retailers still bet on physical retail thanks to a renewed customer experience, which might be difficult to sustain.

Luca Solca, senior research analyst, Global Luxury Goods at Bernstein identified potential elements of weakness for Italian luxury companies producing at reduced scale compared to international competitors, including the “enormously increasing fixed costs,” a higher dependency on the multibrand wholesale channel, which is “today in a terminal crisis,” and lagging behind in the digital transformation. Social media, influencers and multibrand digital e-commerce are further exacerbating traffic and productivity challenges.

Solca said the need to create capsules, exhibitions, pop-ups and other methods of differentiating flagships with high-touch service are expensive, resulting in a higher incidence of fixed costs, which are difficult to sustain.

While admitting the increasing importance of online shopping, Michele Norsa, executive vice chairman of Salvatore Ferragamo, was “less optimistic” about the online quota in the future, underscoring the quality of physical experience. “The retail experience is a founding value of the luxury system in addition to being a vital impulse for traveling. Would you rather eat at a starred restaurant or [the same menu] delivered at home?”

On the contrary, Chris Morton, founder and CEO of shopping search platform Lyst thinks “it’s more of a luxury experience to be able to buy remotely from your sofa with a glass of wine rather than having to run across town to a store”.

Nicola Pianon, managing director and senior partner of Boston Consulting Group, said luxury companies will have to respond to an environment in which consumers, at least for a few years, will be traveling closer to home. While paying close attention to the online channel, “brick-and-mortar stores will continue to have a key role”.

The Luxury Retail Evolution in Wake of COVID-19 Pandemic 

What: The department store partners with Drinks, the online leader in adult beverage.

Why is it important: This announcement comes as online wine shopping continues to gain widespread adoption.

The new offering marks a significant expansion of the retailer’s existing online wine program and a new model that will allow customers to make friction-free purchases without a subscription.

Alcohol e-commerce has surged over the past year and is expected to increase steadily over the next five years. As wine e-commerce gains popularity among consumers, Drinks is giving retailers an edge by allowing them to seamlessly bring the wine category online alongside their other products, and offer their customers quick home delivery.

Macy’s and Drinks Launch New Online Wine Shop 

What: The apparel market in France expects a rebound in the second half of the year.

Why is it important: In the first three months of the year, activity increased slightly by 1.9% compared to 2020, but actually a 15% drop compared to the same period in 2019.

2021 could be +5% compared to 2020 and -11% compared to 2019. "This favourable scenario is based on an improvement in the health situation, thanks to the ramp-up of the vaccination campaign," the observatory said.

‎March 2021 was + 67.7% compared to March 2020 (first lockdown enforced), but decreasing by 21% compared to 2019. March online sales jumped 92.2%.‎

Textile-habillement: l’IFM énonce ses projections d’activité pour 2021

What: Premium exercise brand has launched a fully-recyclable zero-waste running shoe.

Why is it important: It is only available to rent via a monthly subscription service.

The Cyclon running shoe is made from castor beans. When the shoes reach the end of their life, which the brand estimates to be after 400km, the user can request a new pair of Cyclons. Once those arrive, they send their old shoes back to On in the same packaging, and the brand takes care of recycling.

Runners pay GBP 25 per month to subscribe to, or rent, the shoe.

On Running releases sustainable running shoe subscription

What : Walmart is pitching itself as a sustainable investment to Wall Street

Why it is important: Commentators recently noted that investors are not looking anymore at retailers for their stores or their stocks, but just their brand name. Pitching sustainability is a good way to valorise retailers’ operations (and investments in such a strategy) to make sure the company is valued at the right level by investors.

Walmart is emphasizing its sustainability efforts to investors in Wall Street (zero emission pledge, employee protection, racial equity…). It is positioning itself as a long-term investment with sense, because it appeals to both customers’ and investors’ consciousness.

The move is smart, as it is a way to give a value to the way operations are built, including store operations, at a moment when potential investors are more interested by the name of the store and the possibilities to licence it (Barney’s, Topshop…) rather than the stores themselves and the stock. It is also a step towards “branding” the retailer’s name and make it desirable, with the hope that this desire will trickle down in terms of customers loyalty and willingness to join the retailer’s audience, as well as more direct benefits such as the success of private labels. We will organise on the 4th June 2021 a Crossfunctional workshop dedicated to “Making the department store brand desirable”.

Walmart’s Sustainability Pitch to Wall Street

Read also:

• Exclusive talk with retail veterans Simon Susman and Erika Vilkaus

What: Selfridges strategy for reopening on 12 April.

Why is it important: The famous department stores bets on sustainability.

Last year, Selfridges “Project Earth” was launched when the store opened between lockdowns. It’s an on-going, five-year move towards greater sustainability including only using PVC-free vinyl, signage for the project will be from recyclable and sustainably-sourced materials. As part of “Good Nature”, the creative theme for Selfridges that will run through 2021, and while the shop waits to reopen, a weekly podcast examines the relationship between pleasure and nature.

The shop’s windows, rather than having merchandise, will feature a single image commissioned from artists, and will be shown across the stores, both London, Manchester and Birmingham. Independent stores within Selfridges will feature vintage and upcycled products from iconic outdoor brands including the North Face “Nuptse”. Other sections will be devoted to rental rather than purchase, a repair concierge will be on hand.

There will also be an “experience concierge” who will be able to put together opportunities, from skate sessions to a collection of treatments in the beauty studios and meals, including the new restaurant concept Hive, where specially built beehives will also receive their first colonies.

How One London Department Store Is Planning To Thrive In 2021

What: Cartier and Prada joined Aura, a blockchain platform launched by LVMH

Why it is important: The luxury giants aim to fight counterfeiting and improve visibility through the supply chain.

LVMH’s blockchain platform, Aura, is a product verification and tracing system. Cartier and Prada joined the platform, which is a rare instance of the rival luxury brands working in concert.

The platform is now open for all luxury brands to join to help fight against counterfeit by keeping tamper-proof ledgers containing all the information about the item. The platform also establishes an industry-wide blockchain system, providing the transparency needed to give fashion items a second life as resale popularity continues to rise.

Cartier, Prada Link Up with LVMH in Blockchain Alliance

What:  Zalando is accelerating on sustainability with several strategic initiatives

Why it is important:  They are giving customers the option to browse the site by values (water consumption, animal welfare…). It might translate into customers expecting this approach in other stores in the near future.

Zalando aims at generating 25% of its Gross Merchandise Volume through sustainable products by 2023. To achieve this, they have launched a series of initiatives:

• Take part to global events such as the Copenhagen Fashion Week (one of the most “green” fashion weeks in the world) with the Zalando Sustainability Award,
• Push the do.MORE initiative launched in 2019, with a plan to reduce carbon emissions by 80% and have 90% sustainable suppliers within 2025
• Invest in pre-owned market, with such an offer now available in Poland, Crez Republic, Austria, Denmark, Finland, Italy, Sweden and Germany,
• Make all those commitments visible: customers are now able to browse the site by values (water conservation, animal welfare…)

It is estimated that Zalando’s GMV increased by between 54.5% and 56.5%, to USD 3.8bn during the first quarter of 2021, and its revenue by between 46% and 48%, to USD 2.73 bn.

Zalando Lets Consumers Shop By Values And Expands Pre-Owned Markets

What: The e-tailer is investing in beauty, one of the most important categories on its marketplace.

Why is it important: Amazon is venturing in physical retail again.

The e-tailer partnered with an independent salon to open a 1 500 square space hair salon in London to demonstrate its hair care products and technologies. The salon will offer services for adults and children, including cut, colour and styling, and guests will be able to try out hair colours virtually through augmented reality or scan and purchase items on the salon’s shelves.

The salon will be open only to Amazon employees at first, and the company said there are no current plans to open additional locations.

Amazon to Open Beauty Salon in London 

What: Three years after opening, Shinsegae Duty Free is a victim of the collapse in inbound and outbound tourism driven by the pandemic.

Why is it important: The premises will be converted to expand Shinsegae Department Store.

Shinsegae Duty Free’s full-year revenues in 2020 slumped -45.9% to KRW 1 693 billion (USD 1 53 billion). While downtown duty free sales held up better than the disastrous airport business (down by just -22%  year-on-year in Q4 compared with an overall -47.5% fall), that result was spurred almost entirely by a resilient group daigou (Chinese personal shoppers) channel. Shinsegae Duty Free’s flagship store in Myeong-dong will continue to serve that business.

Shinsegae invested around KRW 75 billion (USD 69 million at the time) in opening the 13 350 sqm store in 2018 amid buoyant times for South Korea’s duty free industry.

Shinsegae Duty Free to close Gangnam store in July

What: 88% of shoppers saying they are more likely to shop with a beauty brand that offers a BNPL option.

Why is it important: As beauty is a critical business for department stores, data shows all age groups have increased their orders during the pandemic.

“Klarna’s beauty survey has uncovered new consumer insights and trends that beauty brands should keep in mind as they plan their strategies for the rest of the year,” said David Sykes, head of U.S. at Klarna. “For example, a key learning is that shoppers across all generations agree that brand values play a significant role in their purchasing decisions when shopping their favourite beauty items.”

More consumers in the Baby Boomer generation said sustainability values were most important when shopping for beauty products (31%) than Gen Z (19%). Instead, diversity and inclusion was named the most important value by both Gen Z at 40% and Millennials at 31%. When asked what items beauty shoppers want most, skin care came out as the top beauty category shopped during the pandemic.

As vaccines become available, Klarna’s survey found many young shoppers plan to return to stores to shop for beauty — 30% of Gen Z and 24% of Millennials. However, while 67% of respondents said they preferred shopping in-store for beauty pre-pandemic, 42% said they plan to continue to shop as they currently are even after the vaccine rolls out.

Over the past year, the survey shows that Millennials were the top generation to prefer mobile shopping at 42.5% while all other generations preferred shopping on a desktop. Overall, the option to buy now, pay later was found to be the “biggest factor in improving the online shopping experience” during the pandemic in all age groups. 88% of shoppers saying they are “more likely to shop with a beauty brand that offers a BNPL option.”

“A lot of our partners are looking for new customer-centric strategies to drive customers back to store,” said Alex Fisher, Afterpay VP of retail, adding that there has been “massive demand” for Afterpay to be at beauty retail stores.

According to a BareMinerals spokesperson, in-store locations typically see an average order value of USD 42, but this has increased to USD 96 since the start of its Afterpay partnership. Additionally, the repeat purchase rate for Afterpay customers is over 20%, which is higher compared to other payment methods, the spokesperson said.

Klarna Survey Reveals Changing Consumer Behaviors in the Beauty Sector

Buy Now Pay Later platforms are catching on in beauty stores

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