What: Shoppers have returned to Gulf malls since the conflict broke out in February, but fashion spending has not followed, with luxury sales weakening and shipping costs rising.

Why it is important: With international tourism subdued, Gulf retail now depends on resident consumers, which rewards retailers that invest in local relevance, value pricing and flexible supply chains.

Prada Group's Middle East retail sales fell 23% in the first nine months of 2026, and Hermès reported a 4.3% decline in the reporting region covering the Middle East. Premium international labels are most exposed, caught between selective luxury clients and cost-conscious shoppers. Lower-priced fashion has held up: Primark's three new Dubai stores drew record customer numbers, while Zara and value retailers such as Max, LCWaikiki and Koton report steady traction.

Some regional brands report shipping costs up to four times pre-conflict levels as disrupted sea routes force reliance on air freight. Most international carriers have not resumed GCC flights, and an attack on Riyadh's King Khalid International Airport cancelled nearly 90% of its flights. Bahrain's Touchless now ships international orders by road through Saudi Arabia, and Mrs Keepa is building production and inventory capacity in Europe to reduce its dependence on Dubai.

Kering reported a sequential third-quarter recovery in the region supported by resident spending. Mall openings continue, including Cenomi's Westfield Jeddah, opened in July, and The Avenues in Riyadh, scheduled for early 2027. Kloto Consulting expects 2027 to focus on margins, inventory and cash flow rather than expansion.

IADS Notes: Gulf malls are busy again after a spring of closures. In March, Chalhoub Group temporarily shut global brands' stores across the region (Reuters, March 2026), and falling tourist arrivals emptied Dubai's malls and forced luxury closures, reversing the resilience the market had shown in mid-2025 (Financial Times, March 2026). The value-led resilience was already visible that same month, when Primark and Ulta Beauty opened in the UAE to strong in-store demand despite the volatility (Forbes, March 2026). On logistics, the conflict had already disrupted sourcing and built up inventory backlogs, particularly in fast fashion, pushing retailers towards scenario planning (Inside Retail, March 2026). The turn towards resident shoppers also draws on a season brands were already investing in. Before the conflict, the Middle East luxury market grew 6% to $12.8 billion in 2025, and brands were treating Ramadan as a strategic retail moment with dedicated capsules and culturally fluent campaigns (WWD, February 2026).

Fashion spending lags in the Gulf as shoppers return to malls

What: Gap Inc. has launched Bridgette, an AI career guide that helps candidates find and apply for jobs, answers their questions and schedules interviews, ahead of an expected 200,000 seasonal applications.

Why it is important: Gap Inc. is using peak hiring season to test whether AI can take scheduling and candidate questions off store managers, as US forecasts for seasonal hiring diverge.

Gap Inc., the owner of Old Navy, Athleta and Banana Republic, announced Bridgette on 23 October. The tool runs on Paradox and Workday Recruiting technology and also sends reminders and keeps candidates informed throughout the hiring process.

Gap Inc. developed it partly to free store managers from recruiting administration. Since June it has piloted Bridgette at over 100 stores and six regional distribution centres. Nearly 45,000 people have used it and it has scheduled more than 7,000 interviews. The company is hiring for full-time and part-time seasonal roles and had not said how many positions it wants to fill.

Amy Thompson, chief people officer at Gap Inc., said technology can manage the repetitive coordination behind hiring while its people focus on the conversations and decisions that build teams.

Challenger, Gray & Christmas projects US retail seasonal hiring will fall 2.5% to about 450,000 jobs in the fourth quarter. The National Retail Federation expects 325,000 to 375,000 seasonal hires, against 265,000 to 365,000 a year earlier.

IADS Notes: Marks & Spencer is recruiting 11,000 festive staff, more than the 10,400 roles at John Lewis, in a market where rising labour costs are pushing retailers towards automation and job cuts (Drapers, October 2026), and El Corte Inglés is adding about 6,350 people for Black Friday and Christmas (Fashion Network, October 2026). On the customer side, Macy's launched a shopping assistant built on Google's Gemini, and customers who use it spend nearly 400% more than those who do not (Fortune, March 2026). Research on AI in retail hiring finds efficiency gains alongside bias risks and a weaker candidate experience, which keeps human judgment necessary (Harvard Business Review, December 2025). In a US survey, 74% of workers say an AI-led interview would change their view of a company and 59% believe AI worsens bias (ESG Dive, December 2025).

Gap Inc. launches an AI career guide for seasonal hiring

What: US luxury department stores are competing harder for salespeople who generate millions in annual sales, using uncapped commissions, solid base pay, dedicated assistants and even private boutiques to recruit and keep them.

Why it is important: As aspirational shoppers pull back, a few sellers who hold the wealthiest clients carry a growing share of sales, and their client books can leave with them for a rival store or an independent practice.

Nordstrom approached Catherine Bloom while she was generating hundreds of millions in sales for Neiman Marcus. She declined, then joined in February 2025 as director of luxury styling after Saks Global, fresh from its $2.7 billion acquisition of Neiman Marcus, struggled with debt, unpaid vendors and inventory problems, which hampered her client service. She now hosts clients in an appointment-only boutique on Melrose Place in Los Angeles.

Competition has intensified as AI and luxury price hikes raise the value of personal service and a weak economy leaves retailers more dependent on big spenders. Nordstrom's selling point is uncapped commission, at rates from 3% to 14.5% depending on merchandise. Saks runs a top-seller programme starting at $1 million in annual sales and rising to Master Stylist or Master Seller status above $7 million.

Recruiters cite charisma, emotional intelligence and an entrepreneurial streak, but the client book is the hard asset, and its value rises when it brings clients a store lacks, such as Gen Z shoppers. Top sellers also feed merchandising intelligence and mentor colleagues. A reliable base salary, recruiters argue, curbs aggressive selling and internal rivalry. Bloomingdale's adds client lounges, upgraded systems and, for some, dedicated assistants.

IADS Notes: The Saks Global turmoil that opened the door to Catherine Bloom's move has since ended in a restructuring: the group emerged from bankruptcy as Exemplar Luxury Group with 75% less debt, fewer stores and staff cuts, and must now restore exclusives, loyalty and priority brand allocations (WWD, September 2026). Within the group, Bergdorf Goodman has made its top sales associates the cornerstone of its recovery, with the 40 highest-volume associates generating about $200 million a year, after unpaid vendors under Saks Global had left them with little new product to show (The New York Times, October 2026). Bloomingdale's chief executive Olivier Bron runs his top personal shoppers as businesses within the business, supplied with brands, inventory, systems and space, while the chain's wealthiest customers grow in number and spend more (BoF, October 2026). Department stores are not the only bidders for this talent: independent personal shoppers, many of them former staff laid off at Saks and other luxury retailers, now win the top-client relationship on commissions starting at 10% of spend (Financial Times, October 2026). Retail failures put the same people at risk: after Harvey Nichols collapsed, Frasers Group made goodwill payments to unpaid freelance personal shoppers and stylists and moved them from quarterly to monthly pay (City AM, August 2026).

Inside the battle for U.S. luxury's million-dollar salespeople

What: Hong Kong is using a month-long Halloween programme to lift visitor spending, which last year was HK$197.5 billion, 44% below 2018, even as arrivals rose 11% in the first eight months of 2026.

Why it is important: Most of Halloween's economic lift lands in bars and restaurants rather than shopping bags. The programme tests whether event-driven footfall can reach retailers at all, in a market where apparel and department store categories are barely growing.

The Hong Kong Tourism Board is running Halloween as a month-long programme for the first time, with cosplay street parties across five districts on three consecutive Saturdays, free Halloween-themed transport for costumed visitors, and festivities at Hong Kong Disneyland and Ocean Park running to November 1. Executive director Anthony Lau said the board wants Hong Kong to have the densest Halloween atmosphere of any city in Asia, as part of a push to spread tourism spending across the economy.

Crowds have returned: 36.7 million visitors arrived in the first eight months, and 1.41 million mainland visitors came during Golden Week, about 9% above forecast. Spending has not kept pace. Overnight visitors spent HK$5503 on average last year and same-day visitors HK$1139, and seasonally adjusted retail sales fell 4.6% in the three months to August despite 16 straight months of year-on-year growth.

Halloween's gains sit in food, drink and nightlife: the Lan Kwai Fong Group chairman says festivities lift food and beverage sales by 20% to 25% each year. The article treats average ticket per head, set against the cost of discounts, as the key metric.

IADS Notes: Hong Kong's retail gains have been concentrated in a few categories rather than spread across the market. August sales rose for a 16th consecutive month, led by jewellery and watches (+11.9%), while clothing and footwear slipped 0.3% even as mainland visitor arrivals rose 8.2% (Reuters, October 2026). July showed the same split, with department store commodities and alcohol and tobacco among the categories growing by only 0.5% to 1.8%, while online sales reached 9.1% of the total (Inside Retail Asia, September 2026). Where visitors do spend, destination malls with a steady pipeline of new brands capture the gains: K11 Musea's tourist spending rose 26% over Golden Week, well above the 5.3% revenue growth across 78 mainland shopping districts, driven by new athleisure and luxury openings (Inside Retail Asia, October 2026). Mainland holiday data points to a parallel shift toward family trips, cultural activities and experience-led spending, with overseas visitor spending in China up 27.8% in the first seven months of the year (Xinhua, October 2026).

Hong Kong turns Halloween into a month-long programme to lift visitor spending

What: Bergdorf Goodman has named Lanessa Elrod, former president and CEO of Louis Vuitton Americas, as president, succeeding Tracy Margolies, who becomes executive adviser to parent Exemplar Luxury Group.

Why it is important: The appointment shows the group rebuilding its leadership after bankruptcy around people who know luxury brands from the inside, as it tries to restore exclusives and newness across its banners.

Elrod returns to a group she knows well. She was a ready-to-wear buyer at Neiman Marcus from 1997 to 2003 and at Saks from 2003 to 2005, then senior buyer for handbags and accessories at Bergdorf Goodman from 2005 to 2010. She later spent almost 14 years at Louis Vuitton, overseeing the U.S., Canada and Latin America and credited with substantial growth, innovation and strong customer relationships, before leaving in May 2024. The changes take effect on Monday.

CEO Geoffroy van Raemdonck called the appointment an important step in advancing the group’s strategic priorities and strengthening Bergdorf’s position at the top of luxury. Elrod said she aims to work with its team and brand partners to deepen personal connections with customers and give new form to the store’s spirit of discovery.

Tracy Margolies, president since December 2024 and previously Saks’ chief merchandising officer, will report to van Raemdonck and work across Neiman Marcus, Saks Fifth Avenue and Bergdorf Goodman. Elrod and van Raemdonck will shape strategies to grow the business after the January bankruptcy of then-parent Saks Global, which emerged from Chapter 11 in June under its new name.

IADS Notes: Lanessa Elrod’s appointment extends the leadership renewal at Exemplar Luxury Group, which left Chapter 11 with debt cut by nearly 75%, new ownership and a portfolio centred on Neiman Marcus, Bergdorf Goodman and Saks Fifth Avenue (WWD, June 2026). Her years running Louis Vuitton’s Americas business match the group’s central dependency: its recovery rests on rebuilding trust with luxury brands such as Gucci, Chanel and LVMH and Kering labels after months of delayed payments, with greater reliance on concessions and consignment (Financial Times, July 2026). The commercial agenda remains demanding, as the group must differentiate its three banners, restore newness and exclusives, and secure priority allocations from brands while carrying $1.2 billion in debt (WWD, September 2026). The move follows the arrival of Gretchen Koback Pursel, whose experience spans luxury, beauty and wellness, as chief people officer under CEO Geoffroy van Raemdonck (as reported by WWD the same month). At Bergdorf itself, the 40 highest-volume sales associates generate about $200 million a year, and Chanel’s return to the windows signals repaired brand relations (The New York Times, October 2026).

Bergdorf Goodman names former Louis Vuitton Americas CEO Lanessa Elrod president

What: Noel Tata will step down as chairman and director of Trent on November 11 after 29 years, and Bahram Vakil will succeed him on November 12.

Why it is important: Noel Tata's exit ends a 29-year chairmanship in which Trent grew from a modest department-store operator into a multi-format retailer, and it comes as the pace of expansion is being tested on margins.

Noel Tata, who has been associated with Trent since 1997, will leave the board and the chairmanship on November 11. Bahram Vakil succeeds him as chairman from November 12, and Tata becomes chairman emeritus in recognition of his contribution, Trent said in a regulatory filing. The transition follows the Tata Group Governance Guidelines, which set requirements for board composition, committees and director retirement. Tata also chairs Tata Trusts, the majority shareholder in Tata Sons, the holding company of the Tata Group.

The board also approved two appointments, both effective from October 30 and subject to shareholder approval. Rajiv Dube joins as an additional non-executive, non-independent director, and Kalpana Merchant as an additional, independent director for a three-year term.

The changes come as Trent expands its retail operations through the fashion brands Westside and Zudio while building its Star food and grocery business. For the September quarter, consolidated net profit rose 25% year on year to Rs 468 crore, while revenue rose 22% to Rs 5,873 crore. Trent said Tata had provided strategic direction and leadership during his tenure, and the board placed on record its appreciation for his contributions.

IADS Notes: Noel Tata's exit was first reported in June, alongside Trent's growth from Rs 2,333 crore in revenue in FY14 to Rs 20,193 crore in FY26 across Westside, Zudio and Star Bazaar (India Economic Times, June 2026). On a standalone basis, Q2 revenue rose 23% and the portfolio reached 1,342 stores at 30 September, with Zudio passing the 1,000-store mark (India Economic Times, October 2026). The article above reports consolidated results, so the two sets of figures are not directly comparable. The pace of openings has drawn scrutiny since spring: rapid expansion was reported in April to be straining the fashion business's profitability and operational efficiency (India Economic Times, April 2026). In July, Westside was reported to be planning up to 100 stores a year, roughly double its current pace, while Zudio's revenue growth slows and Reliance and Aditya Birla compete harder (India Economic Times, July 2026). The board was already changing before the chairman announcement: Harish Bhat, a Tata veteran linked to Starbucks' development in India, left Trent's board to avoid a conflict of interest, after talks between Trent and Tata Starbucks on in-store cafes broke down and Trent signed a licensing deal with Caffe Nero (India Economic Times, October 2026).

Noel Tata to step down as Trent chairman after 29 years; Bahram Vakil to succeed him

What: Trent reported Q2 FY27 consolidated revenue of Rs 5,873 crore, up 22%, and outlined plans to expand in Tier 2 and 3 cities, scale up Star food and grocery, and take Indian brands overseas.

Why it is important: Trent's roadmap shows how India's largest fashion retailer plans to keep growing after Zudio passed 1,000 stores: more reach in Tier 2 and 3 cities, a food and grocery business built on own brands, and exports.

Trent outlined its growth priorities alongside results for the quarter ended September 30, 2026. Operating EBITDA rose 37% to Rs 785 crore and profit after tax increased 25% to Rs 468 crore. Operating EBIT margin reached 11.6%, against 10.5% a year earlier, while the gross margin profile of Westside and Zudio remained stable.

The company opened 10 Westside and 19 Zudio stores in the quarter, ending with 311 Westside and 999 Zudio stores, including seven in the UAE. Fashion retail covers more than 18.5 million square feet across 339 cities. Emerging categories, including beauty and personal care, innerwear and footwear, contributed more than 21% of revenue. Westside's online business grew 20% in the first half and accounts for more than 6% of its revenue.

Star's revenue grew by more than 20%; it added one store, taking its network to 87 outlets across 13 cities, with own brands contributing more than 74% of revenue. Trent's consolidated revenue excludes Trent Hypermarket, with only its proportionate share of profit included under the equity method. Noel Tata steps down as chairman on November 11 after 29 years, and Bahram Vakil takes over on November 12.

IADS Notes: Trent's record under Noel Tata, whose exit as chairman is now confirmed, is documented in earlier coverage: revenue rose from Rs 2,333 crore in FY14 to Rs 20,193 crore in FY26, built on private labels, value fashion and a multi-format portfolio that includes Star Bazaar (India Economic Times, June 2026). Zudio's street-front, low-price model with weekly launches took it to 1,000 stores in a decade, with room for around 4,000 more, while Reliance Trends and Max Fashion intensify competition (Financial Times, July 2026). Westside was reported to be planning up to 100 stores a year, roughly double its current pace, with e-commerce targeted to rise from about 6% to 10% of revenue (India Economic Times, July 2026). The strain that fast rollout puts on profitability and operational efficiency was already flagged in April 2026 (India Economic Times, April 2026), and the Q2 standalone figures showed growth accelerating to 23% from 19% in the first quarter (India Economic Times, October 2026).

Trent plans deeper Tier 2-3 push, Star scale-up and Indian brand exports

What: Indian designers are taking Diwali festive wear to international retailers and events, from Harrods and Selfridges to the Met and Dubai, to serve a 37.3mn overseas Indian population.

Why it is important: Diwali is following Chinese New Year and Ramadan as a festival that department stores can turn into a trading season, and Harrods' 50% rise in Indian footfall on Diwali shows the demand is already there.

Ahead of Diwali, leading Indian designers are taking festive wear abroad. Gaurav Gupta hosted a celebration at Harrods, Sabyasachi held a reception at the Metropolitan Museum of Art, and Tarun Tahiliani opened his first flagship outside India, in Dubai. The overseas Indian population totals 37.3mn, according to India's Ministry of External Affairs. Stylist Zunaili Malik sees department-store pop-ups as a way to reach the diaspora and introduce other communities to these designers.

Diwali is not observed the same way by everyone, and dress varies by region. Anita Dongre sees the biggest shift towards versatility and ease, with lighter fabrics and pieces that can be restyled and worn again, while younger consumers mix Indian and western influences. Manish Malhotra says he designs for customers celebrating in Mumbai, London, Dubai or New York. Harrods says London customers want versatility.

Anamika Khanna presents her couture collection in London on October 30, followed by a three-day Harrods pop-up. Buyers have long felt there is a gap for contemporary festive clothes that keep the codes of Indian dressing without heavy embellishment or gold and silver, and it remains to be seen whether the pop-ups will fill it.

IADS Notes: Harrods' Diwali programme includes an exclusive Gaurav Gupta couture line and greater investment in Indian designers. Footfall from Indian customers rose 50% on Diwali itself, and the festival has reshaped fourth-quarter planning for eveningwear and occasion wear (WWD, October 2026). The store took a similar approach to Chinese New Year, using collaborations with Chinese creatives, a Labelhood pop-up and in-store events to sustain international footfall after the end of UK tax-free shopping (Fashion Network, February 2026). Ramadan has meanwhile joined Christmas and Chinese New Year as a key luxury season, with the Middle East luxury market growing 6% to $12.8 billion in 2025 (WWD, February 2026). Selfridges has also used its Corner Shop to present more than 20 Saudi brands to an international audience (WWD, July 2026). The focus on Indian shoppers also reflects India's emergence as a luxury growth market. High import duties and limited luxury retail infrastructure mean many wealthy Indians still prefer to buy abroad (Financial Times, January 2026).

Diwali dressing is evolving and going global

What: El Puerto de Liverpool's third-quarter net profit fell 14.5% as acquisition accounting for Nordstrom offset higher revenue, wider margins and stronger operating profit.

Why it is important: Without the Nordstrom acquisition effects, adjusted net profit would have grown, so the profit decline reflects deal accounting rather than weaker trading.

El Puerto de Liverpool, owner of the Liverpool and Suburbia department store chains, grew third-quarter revenue by 2.2% to 49.115 billion pesos. Liverpool and its boutiques increased sales by 1.5% (0.8% like-for-like), while Suburbia's revenue slipped 0.1% (−0.5% like-for-like). Digital penetration reached 30.3% at Liverpool and 7.4% at Suburbia. Financial income rose 6.9% and real estate income 16.3%.

Profitability improved despite cautious consumer spending, particularly on clothing and accessories. Consolidated gross margin widened to 42.8% from 40.6%, helped by a better sales mix, promotional discipline and lower import costs. Operating profit climbed 10.1% to 5.318 billion pesos and EBITDA 8.5%, with the EBITDA margin reaching 14.1%.

Net profit attributable to shareholders fell to 3.382 billion pesos. Purchase price allocation adjustments and acquisition costs cut Nordstrom's contribution to 341 million pesos, against 1.141 billion pesos a year earlier; excluding these effects, adjusted net profit would have risen 5.8%. Over the first nine months, revenue grew 1.2% and consolidated net profit 9.2%.

The group is working with Primark on its rollout plan for Mexico, and its network now includes 76 Liverpool Express stores, up from 59, and 174 boutiques, up from 135.

IADS Notes: The drag from Nordstrom on Liverpool's reported profit contrasts with the US retailer's own trading: less than a year after its $6.25 billion take-private by the Nordstrom family and Liverpool, Nordstrom had returned to pre-pandemic revenue of $15.8 billion (according to BoF in April 2026). The third-quarter margin gains continue the course Liverpool set over the summer, when it lowered its full-year same-store sales guidance and chose to protect gross margin and inventory over discounting, with clothing the hardest-hit category (Modaes, September 2026). Second-quarter results had already shown commercial gross margin up 140 basis points, digital penetration of 32.3% at Liverpool, two points above the third-quarter figure, and financial services and real estate growing faster than retail (Press Release, August 2026). That diversification has since widened to personal loans, insurance, a savings product and in-store services such as nail salons, as Liverpool seeks to offset weaker discretionary spending (as Fashion Network reported in September 2026). The Primark partnership, presented in September as an extension of Liverpool's brand-licensing activity following its takeover of Dockers' Mexican distribution, now has a target of being finalised before the end of 2026 (WWD, September 2026).

Liverpool's third-quarter net profit falls 14.5% as Nordstrom acquisition costs offset margin gains

What: Fashion brands including Diesel, Calvin Klein and L'Oréal have sought AI rights over models' likenesses in photo-shoot contracts, while retailers such as Zalando and About You shut photo studios and switch to AI-generated models.

Why it is important: Zalando, Zara and Ssense have already moved production to AI. This article shows the legal cost side of that shift, which the earlier IADS coverage on efficiency and creative labour does not address.

AI-generated fashion models can cut image-production costs by 90% or more versus human-model shoots, while regulation of digital twins remains scant. Reuters interviewed 15 agency directors and reviewed over a dozen unsigned, confidential contracts. Diesel's release sought face swaps and body alterations, Calvin Klein's draft allowed images to train AI tools at no extra pay, L'Oréal's asked for broad AI usage rights, and skincare brand Reale Actives sought to own AI replicas of models for a year without further compensation. Diesel's parent said its release was campaign-specific, L'Oréal said it only uses standard post-production tools, and Reale Actives blamed a production partner.

Zalando closed both its Berlin photo studios and cut more than 340 jobs, though it retained some of those employees in other roles. Its subsidiary About You is launching Scayle Studios, which has 130 brand clients and generated 190,000 outfits in the last month.

The New York Fashion Workers Act has made it illegal since June 2025 to create or modify model replicas without explicit consent. Britain and Europe lack binding rules, relying on an agents' code of practice.

IADS Notes: Fashion retailers have been replacing shoot-based production with AI-generated imagery for the past year. BoF reported in December 2025 that Zara digitally dresses real models in different outfits, with compensation aligned to industry standards. Drapers noted in May 2026 that generative AI governs about 90% of Zalando's on-site marketing content and powers more than 170,000 product videos, with AI-generated models replacing child talent in kidswear. Cost pressure has pushed the shift further: the Montreal Gazette reported in July 2026 that Ssense cut most of its visual production team during its court-supervised restructuring and will combine garment images with model likenesses using AI. Rules and consumer response are still unsettled. Reuters reported in June 2026 that Eurocommerce asked the EU to exempt non-misleading AI-generated retail ads from AI Act disclosure requirements, and a Harvard Business Review study from September 2026 found that AI-made video ads trailed human-made ones on sales potential and brand equity even though consumers could not tell them apart.

Fashion's AI era: face swaps and digital clones

What: Stockmann is creating a Luxury Hall for bags and accessories on the ground floor of its Helsinki flagship, opening in phases from the end of 2026 and fully completed in 2027.

Why it is important: Exclusive brand access is becoming a department store's strongest differentiator, and Stockmann is building its Helsinki flagship around that advantage.

Stockmann is transforming the ground floor of its Helsinki flagship into a Luxury Hall dedicated to bags, accessories and complementary categories, with the ambition of making it an international-level luxury destination in the city. The space will open in stages, with the brand portfolio growing at each phase.

The first phase brings in Saint Laurent, Alaïa, Chloé, Dries Van Noten, Givenchy and Maison Valentino, with Balenciaga arriving at the start of 2027. Some of these houses will be available in a physical store in Finland for the first time. They join an existing portfolio that includes Burberry, Mulberry and Longchamp, and further brands will be announced as the work progresses.

Maiju Niskanen, Chief Brand and Offering Officer, presents the project as a step towards the standards of Europe's leading department stores and a response to demand from Finnish shoppers and international visitors, supported by Helsinki's growing tourism. She argues that while consumers increasingly discover products online, luxury purchases are still often decided in physical stores, where service, expertise and brand experience weigh heavily.

The Luxury Hall is part of Stockmann's broader strategic transformation, which the company links to its continued improvement in profitability.

IADS Notes: The Luxury Hall follows a steady recovery at Stockmann, whose comparable revenue grew in the first half of 2026 while its adjusted operating result improved to EUR -4.8 million (Press Release, July 2026). Department stores are also serving as entry points for luxury houses in new cities: in China, Chanel chose SKP for its first store in Wuhan, its fourth boutique inside the group's properties (WWD, October 2026). In the UK, Frasers Group has combined Flannels, The Webster and Harvey Nichols into a £1bn+ luxury division that now competes with independent department stores for brand allocations, regional customers and acquisition targets (Drapers, October 2026). International shoppers are becoming a core customer group elsewhere too, as Lotte Department Store became the first Korean operator to pass ₩1 trillion in annual foreign customer sales, with luxury sales to foreigners more than doubling (The Korea Times, October 2026). Boyner Group's Communité concept in Istanbul similarly treats the physical store as a destination for curation, hospitality and discovery in luxury retail (BoF, June 2026).

Stockmann creates a Luxury Hall for luxury bags and accessories at its Helsinki flagship

What: Macy’s has launched its Top 100 Gifts list and Gift Guide for the US holiday season, with 63% newness across gifting categories and a dedicated shop for its 100th Thanksgiving Day Parade.

Why it is important: Macy’s is using an edited gift list and the parade centenary to set its holiday offer apart, continuing a strategy that puts quality and value ahead of deep discounting.

Macy’s There’s Magic Inside campaign brings together its Top 100 Gifts, a Gift Guide and a seasonal assortment across fashion, beauty, home, toys, tech, food and décor. Chief merchandising officer Nata Dvir framed the selection around sought-after brands, new discoveries, quality and competitive pricing.

In beauty and fragrance, the list includes gift sets, advent calendars and discovery samplers from Dior, Jo Malone, Creed and Maison Francis Kurkdjian, with new launches from Chanel and Prada. Fashion and accessories feature Miu Miu, Movado, UGG and The North Face, Coach’s updated Kisslock shoulder bag and an expanded range of lab-grown diamond jewellery, including $2,500 earrings in 14k gold. Home gifting covers Breville, Harry & David and MacKenzie-Childs. Toys range from LEGO and Barbie to KPOP Demon Hunters and Avengers Doomsday lines, while tech includes smart glasses and MyArcade miniature retro arcade systems.

The Parade Shop offers centenary collectibles, including a Parade Bear collection, a Levi’s capsule and limited editions from partners such as Lenox and Waterford.

The Gift Guide organises recommendations by price, recipient and category. Customers can shop in stores, online, in the app or through DoorDash same-day delivery from more than 350 locations, with MyStylists offering personalised recommendations.

IADS Notes: Last holiday season, about 40% of the Herald Square assortment was new, and Macy’s put quality and value ahead of deep discounting (WWD, November 2025). The Parade Shop extends a centenary programme that began with the yearlong “Celebrations Start at Macy’s” initiative (WWD, March 2026). It continued with a 100-day countdown of exclusive merchandise developed with Disney, M·A·C, Coach, Ralph Lauren, Lego, Peanuts and Sanrio (WWD, August 2026). In store, the gifting push is supported by new Coach, Michael Kors and Tory Burch shops at Herald Square, an expanded Holiday Square market and a redesigned Santaland (WWD, October 2026). John Lewis is also targeting nostalgic, playful gifting this year, with a miniature arcade game and Snoopy products in its Christmas range. It sold 65% of its Santa’s tea party tickets to loyalty members before general release (Drapers, September 2026).

Macy’s unveils Top 100 Gifts and Gift Guide for the holiday season

What: The Paris department store BHV Marais has filed for receivership, which will freeze its past liabilities while it remains open and pivots from fashion to home and lifestyle.

Why it is important: The filing shows how quickly a downsizing deal with a landlord can turn from a financial lifeline into a point of failure once the promised compensation is disputed.

BHV Marais has asked to be placed in receivership to secure its relaunch plan and preserve jobs. Karl-Stéphane Cottendin, who took over the store in June, says the plan was to be financed partly by compensation agreed in exchange for returning more than half of the store to landlord Brookfield in the spring, funds that were never paid. Brookfield categorically denies owing BHV any money.

Management says the missing funds prevented the relaunch, including restocking and refitting the retained space, from starting in the summer. Riots in central Paris on recent Saturdays, culminating in the looting of the store's ground floor, further strained limited cash reserves.

The store, founded in 1856 and employing 700 people, will stay open. Management presents receivership as the framework for its relaunch: it freezes past liabilities, gives returning brands and suppliers priority payment, and sets a timetable to enforce the landlord's agreements.

The labour inspectorate suspects the business is in cessation of payments, which management disputes. Striking employees estimate the debt of BHV Marais and Parly 2 at €80 million after SGM's tenure, during which Shein's arrival drove brands away. The store is now moving from fashion to home and lifestyle.

IADS Notes: The receivership filing follows a series of space and rent concessions that reshaped the store's economics. After Brookfield acquired the building, BHV was to shrink from 45,000 to about 27,000 m² and see its annual rent halved from €18 million to €9 million (Les Echos, February 2026). Brookfield then set out a €200 million plan to redevelop 60% of the site into a hotel and self-contained retail units (Fashion Network, May 2026). The compensation tied to that handover was already contested in July 2026: Brookfield was deducting compliance and maintenance costs from the sums owed for releasing 40% of the space, and resumed rent payments raised concerns about cessation of payments (La Lettre, July 2026). The commercial damage behind these disputes stemmed largely from the Shein partnership, which was linked to brand departures, the withdrawal of investors and public funding, and an 80% fall in sales. The new owners responded by announcing a repositioning around home, DIY and creative leisure (Le Monde, June 2026). The turnaround plan unveiled the following month showed supplier confidence starting to return, with 37 brands confirming their comeback for the autumn (Fashion Network, July 2026). The receivership now seeks to protect that recovery by giving returning brands and suppliers priority payment.

BHV Marais files for receivership amid dispute with landlord Brookfield

What: Tata Group's Trent has reportedly signed a licensing agreement with British coffee chain Caffe Nero to open cafes inside its Westside and Zudio stores, after talks with Tata Starbucks on a similar arrangement broke down.

Why it is important: Trent is licensing a specialist coffee brand rather than building its own cafe business, the same logic behind the food-led traffic strategies at department stores in Seoul and the UK, where food is used to extend dwell time.

Tata Group retailer Trent has signed a licensing agreement with British coffee chain Caffe Nero to open cafes within its Westside and Zudio stores, people familiar with the matter said, even though the group has an existing joint venture with Starbucks. The commercial terms, rollout schedule and number of cafes could not be ascertained.

The agreement follows the breakdown of talks between Trent and Tata Starbucks, the joint venture between Tata Consumer Products and Starbucks Coffee Co. Starbucks wanted a prominent, front-facing presence within Trent's stores, which the retailer was unwilling to accommodate, and the two also differed over Starbucks' control of formats and locations. Harish Bhat, a Tata veteran linked to Starbucks' development in India, recently left Trent's board to avoid a conflict of interest.

For Trent, the partnership offers access to a specialist coffee brand without developing its own cafe business. High real estate costs make cafe economics important in India, where retailers must maximise revenue per square foot. Caffe Nero, founded in London in 1997, could gain a platform for a large presence in India, although the scale and pace of expansion remain unclear.

IADS Notes: Food-led formats are becoming a standard traffic lever for department stores. At Seoul's leading flagships, food halls are the main entry point for younger first-time visitors: 78% of first-time visitors to The Modern Food Hall were in their 20s and 30s, and 79% of them went on to buy other products (Maeil Business Newspaper, October 2026). Selfridges, John Lewis, Liberty and Harrods are likewise using food halls, restaurants and workshops to extend dwell time and compete for consumers' leisure time rather than routine purchases (The Retail Bulletin, July 2026). Trent's store base is expanding quickly, with Westside planning up to 100 openings a year, roughly double its current pace, while Zudio's revenue growth slows and Reliance and Aditya Birla compete harder; limited retail space is among the constraints weighing on the sector (India Economic Times, July 2026). By September 30, 2026, Trent's portfolio stood at 1,342 stores across Westside, Zudio and other lifestyle brands (India Economic Times, October 2026). Space productivity is the pressure point: a 16% fall in revenue per square foot had already raised cannibalisation concerns in January 2026, alongside a restructuring of Trent's joint ventures with Inditex and the sale of its stake in Massimo Dutti India (Bloomberg, January 2026).

Trent set to serve up Caffe Nero at Westside, Zudio outlets

What: Selfridges cut its workforce from over 3,200 in 2020 to about 2,800, mostly at head office, as operating profit rose 88% to £79.7m on flat sales.

Why it is important: Selfridges' profit rebound comes from cutting costs at head office, where buying, windows and events are decided, which tests how far a luxury department store can trim the teams behind its differentiation, as Harvey Nichols and Printemps make similar cuts.

Selfridges reports a pre-tax profit of £13m for the first time since 2019, against a £15.9m loss a year earlier, with operating profit up 88% to £79.7m. Management points to sales growth of 7% to £830.8m, but the previous financial year covered only 48 weeks, against 52 this time. Sales have in fact been flat over three years, at £843.7m, £834.9m and £830.8m, while international tourists are staying away from the London flagship.

The improvement comes from better margins and tight cost control rather than new space or major works across the 96,000 m² network. The cuts fall mainly on head office: 450 posts disappeared in 2020, a new redundancy consultation opened in 2023, and 70 posts were cut in 2024 and again in May 2026. Staff numbers have fallen from over 3,200 in 2020 to around 2,800. Stores are spared, according to the retailer.

Head office is where buying, windows and events are decided. Selfridges, named best department store in the world four times, built its reputation on surprise. Central Group and Signa paid £4bn for Selfridges in 2021; after the collapse of René Benko's empire, PIF took Signa's 40%, at an undisclosed price.

IADS Notes: Cost-cutting at the centre of a department store is a pattern seen elsewhere in the sector. Frasers Group's restructuring of Harvey Nichols after the 13 August takeover eliminates certain departments and brings significant redundancies (Drapers, September 2026), while Printemps plans 229 job cuts and the closure of its Rennes store, alongside new roles in digital and omnichannel skills (Fashion Network, April 2026). Ownership structure is the other pressure point: after the Signa insolvency, Central Group's acquisition of KaDeWe in June 2024 removed the rent burden that had undermined its profitability and allowed a refocus on a landmark premium destination (Modaes, May 2026). London's luxury department stores also share a common exposure: Harrods returned to an £84.9m pre-tax profit while the group and its peers cited the absence of tax-free shopping and higher National Insurance costs (Fashion Network, August 2026). Around them, the pedestrianisation of Oxford Street between Selfridges and Ikea arrives as flagship demand shifts toward large experiential formats, with footfall still below pre-pandemic levels (Financial Times, October 2026).

Selfridges returns to profit by cutting costs while sales stay flat 

What: Lotte Department Store opened Lotte Mall Valley Town Cheongnyangni in Seoul on 23 October, a compact mall of about 5,400 pyeong with more than 50 brands, its first new Seoul store in 15 years.

Why it is important: Lotte is shifting its growth from large department store sites to compact, transport-linked malls that feed traffic to the existing store, at a time when Korean operators are managing their networks as a portfolio.

Lotte Mall Valley Town Cheongnyangni opened on 23 October near Cheongnyangni Station in Seoul. It is Lotte Department Store's first new Seoul store in 15 years since Gimpo Airport in 2011. The mall covers about 5,400 pyeong and hosts more than 50 brands, 80% of which are debuting in a retail channel or opening their first or largest store in northeastern Seoul.

Lotte views the site as a new opening model for its mall business. It reduced the size to fit the local market and concentrated on brands with strong drawing power, centring the lineup on household goods, F&B and experiential stores rather than luxury or mid-to-high-end fashion. Anchors include Musinsa, Olive Young, Decathlon and Asung Daiso, alongside Chinese brands Chagee and Miniso, with Haidilao opening next month.

The lineup targets commuters from the station and families in nearby redeveloped apartment complexes, with children's facilities. The first basement level connects to the subway, and the fourth floor to the train station and the department store's third floor. Lotte plans to renovate the existing store, develop Cheongnyangni into Seoul's third Lotte Town after Myeongdong and Jamsil, and open new stores in Daegu, Sangam, Songdo and Jeonju.

IADS Notes: Lotte's compact Cheongnyangni format follows a period of portfolio pruning at Korean department stores: Lotte is exiting weaker branches ahead of lease expiry and concentrating capital on its strongest sites, in a market where the top 10 of the five major operators' 65 stores already generate 49.8% of sales (The Chosun Daily, September 2026). The value-focused, experiential lineup matches shifts in demand documented elsewhere in Korea. Foreign visitors have moved towards mid-priced, lifestyle-driven purchases, with Olive Young and Artbox reporting strong growth in transport hubs (Inside Retail, January 2026), and Seoul's leading flagships already draw close to half of their new customers from shoppers in their 20s and 30s, largely through food and pop-up events (Maeil Business Newspaper, October 2026). The family offer reflects the demographic backdrop of a birth rebound that has lifted children's sales by 21% at Hyundai Department Store and 13.9% at Shinsegae (Korea JoongAng Daily, October 2026). Outside Korea, Falabella's 1,800 square metre Angol store follows the same logic of a smaller specialised format entering an underserved city, with Click & Collect extending the assortment (Press Release, July 2026).

Lotte opens compact Cheongnyangni mall in Seoul

What: Fourth-quarter US ground delivery pricing is forecast to rise 5.8% year on year and express pricing 13.8%, driven by carrier fuel surcharges that are climbing faster than diesel prices.

Why it is important: Carrier surcharges now rise faster than diesel prices, which makes US retailers' delivery costs structurally higher and less predictable, adding to the cost pressures the Iran conflict has put on retail since March 2026.

The most expensive parcel shipping year on record is on track to end with the highest-ever US holiday delivery prices, as soaring diesel prices push UPS and FedEx fuel surcharges higher. According to the TD Cowen/AFS Freight Index, fourth-quarter ground delivery pricing is forecast to be 5.8% above last year, while express pricing is expected to jump 13.8%.

US on-highway diesel averaged $6.28 per gallon as of October 19, up 65% since the US and Israel attacked Iran on February 28. At that price, UPS's fuel surcharge is 29.5% and FedEx's is 29%. Diesel increases account for just under 30% of surcharge costs, according to AFS Logistics, as changes to carriers' calculations raise surcharges even when fuel prices do not. At $2.91 diesel in early 2021, the index surcharge was 7.75%; the same price would now mean 23.75%.

USPS charges an 8% fuel surcharge and Amazon adds a 3.5% surcharge to seller fulfilment fees, but OnTrac's West Coast surcharge is 29.5%. Analysts say splitting deliveries can nullify savings and holiday plans are set months ahead, while JPMorgan analysts consider it unlikely Amazon will soon break UPS and FedEx's grip on the market.

IADS Notes: Carriers' move from static to real-time, demand-driven pricing was already forcing retailers to rework logistics and cost management, as Harvard Business Review reported in February 2026. The Iran conflict then compounded these pressures. Inside Retail in March 2026 described supply chains thrown into disarray and a growing need for scenario planning, while Forbes that same month framed the conflict as a compounding cost crisis driven by energy prices and inflation. By April, Reuters showed these cost increases reaching packaging and transportation, with retailers responding through price hikes and higher advertising spend. Meanwhile, Reuters in March 2026 reported that Amazon's one-hour shipping in US cities was raising consumer expectations for rapid fulfilment and pressuring other retailers to adapt.

US retailers face record holiday delivery prices from surcharges tied to costlier diesel

What: A retail consultant argues that harsh lighting, loud music, confusing layouts and forced staff interactions are driving neurodivergent and next-generation shoppers out of stores, and that sensory-friendly design is a growth strategy.

Why it is important: The article presents sensory-friendly design as a way to win back younger shoppers who find aggressive engagement and stimulation antagonistic, extending a trend already visible in Walmart's sensory hours, Selfridges' Quiet Hour and Westfield London's sensory room.

Consultant Jasmine Glasheen, who advises brands on next-generation consumers and was diagnosed with autism late in life, argues that fluorescent lighting, loud music, confusing layouts and forced staff conversations make many stores hard to tolerate for the 15 to 20 percent of the population who are neurodivergent. She cites autism diagnosis rates of one in 45 adults and one in 31 children, and recounts a pet store visit where a faulty parking meter and an intrusive associate turned a simple purchase into an overwhelming one. Younger shoppers, she adds, report similar overstimulation.

She proposes three fixes. Staff should move from constant to consensual engagement, as in Sephora's color-coded baskets tested in Europe that signal whether a shopper wants help. Stores should curate sensory output, citing Walmart's permanent daily sensory hours and Lush's managed lighting and sound. Layouts should be predictable, as in Aldi's single fixed loop, boxed displays and ultra-wide aisles. She presents inclusive design as a growth strategy that also serves parents, older adults and employees on long shifts.

IADS Notes: Sensory-friendly measures in physical retail have moved from pilots to permanent features. Walmart made its 8 to 10 a.m. sensory hours permanent across U.S. stores after a successful test (Retail Dive, November 2023), and Westfield London opened a permanent sensory room for visitors with sensory processing disorders, autism and ADHD (Retail Week, February 2025). Selfridges then extended its Quiet Hour, with lowered music and switched-off screens, to every weekday across its stores (Drapers, April 2025). On the service side, UK government research found 65% of respondents reporting access barriers in retail and called for tailored solutions, co-design with disabled customers and enhanced staff training (Forbes, July 2025).

Sensory-unfriendly stores are driving neurodivergent and next-gen shoppers away

What: Frasers Group has raised its stake in Hugo Boss to 50.08% by buying a further 198,666 shares worth about €7.6m, making the fashion label its subsidiary.

Why it is important: Frasers now controls a major fashion label as well as Harvey Nichols, and its record of fast restructuring after acquisitions raises the stakes for brands and retailers that deal with it.

Hugo Boss will become a subsidiary of Frasers Group after the group raised its stake above 50%. Frasers bought a further 198,666 shares worth about €7.6m, taking its total holding to 50.08%, or around 34.5 million shares. The purchase follows a failed €2bn takeover attempt in June that Hugo Boss rejected as "financially inadequate".

According to Reuters, a Hugo Boss spokesperson said the brand had noted the increase but that crossing the 50% threshold would not have any major implications. Frasers said the move was in the best interests of its investors.

The change in control follows a shift in governance. Last month, Hugo Boss chair Stephan Sturm stepped down after discussions with Frasers, which had by then become the brand's biggest shareholder. Sturm had held the role for around a year and a half. Hugo Boss described the discussions as constructive, while Frasers said his exit was mutually agreed following talks over the composition of the supervisory board. Frasers chief executive Michael Murray has since become chair of that board.

IADS Notes: Frasers Group's move past 50% of Hugo Boss completes a stake-building sequence that began with an initial holding of around 5% in 2020 and reached 37.58% during the extended offer period (Fashion Network, July 2026). By September 2026, Frasers stood at 47.89% after only 17.62% of investors accepted its €38-per-share offer. Hugo Boss argued the bid undervalued the company, and Frasers CEO Michael Murray stayed out of the offer review to avoid a conflict of interest (Fashion Network, September 2026). The same pairing of board pressure and shareholder leverage appeared at Accent Group, where Frasers called for the chair's resignation as its takeover bid struggled to win acceptances (Retail Week, August 2026). Where Frasers has gained outright control, restructuring has followed quickly. It acquired Harvey Nichols through a pre-pack administration in August 2026, with supplier confidence and luxury credibility flagged as the open questions (BoF, August 2026). It is now closing the Birmingham store and converting Leeds and Bristol to Flannels (Retail Week, October 2026). Harvey Nichols is the nearest test of how Frasers pairs acquisition-led growth with brand-sensitive stewardship once it holds control.

Frasers Group’s stake in Hugo Boss crosses 50%

What: Chinese beauty brands are entering Western retail through Ulta, Boots and Skin Cupid and through their own overseas stores, although Proya's CEO says its brand awareness in Europe and the US is currently zero.

Why it is important: Chinese beauty brands are building global distribution at the same time as their domestic market slows. Beauty buyers will see a growing number of new, mid-priced brands competing for shelf space.

Chinese beauty brands are expanding abroad after rapid growth at home. Proya Cosmetics, the largest C-beauty brand by revenue, will sell its Advanced Firming and Original Repair skincare lines in 400 Ulta stores and on Ulta.com across the US from November, and opened a Paris research and development centre this month. Florasis opened its first overseas flagship in Tokyo's Ginza district last year, while Joocyee and Judydoll, both owned by Joy Group, opened shops in Singapore and are stocked at British retailer Skin Cupid.

C-beauty brands overtook international names in China in 2022 and accounted for 57.4% of the country's $159 billion cosmetics market last year. Amid a years-long slump in domestic consumer spending, they are following K-beauty, whose exports reached $11.4 billion in 2025. Mid-market price points could be an advantage.

Awareness remains the obstacle. Proya's CEO says its brand awareness in Europe and the US is zero, and Euromonitor data show awareness of C-beauty growing in every market except North America. Proya wants to become a top 10 global brand and is exploring acquisitions of smaller foreign brands, while Florasis shifted its expansion away from the US last year because of China-US tensions.

IADS Notes: Chinese brands' push abroad is part of a wider wave of internationalisation, in which they have moved beyond low-cost exports to flagship stores in Western cities, localising teams and supply chains while contending with regulatory and geopolitical friction (The Economist, January 2026). That expansion is increasingly selective: with domestic demand weak, Chinese retailers are testing each market with a flagship and closing weaker sites rather than rolling out rapidly (Inside Retail, October 2026). The retail channels opening to Asian beauty are largely partnership-led. Sephora is bringing a curated selection of Olive Young's K-beauty brands to its stores and online worldwide from fall 2026 (BoF, January 2026), and John Lewis is launching 20 Korean skin and haircare brands through an exclusive Skin Cupid partnership (Press Release, April 2026). M&S, meanwhile, is handing its beauty offer to Sephora across 100 UK stores from spring 2027, a sign that curated, advisor-led beauty is a traffic driver retailers prefer to partner for (Retail Week, September 2026).

Chinese beauty brands, flush with success at home, start to vie for global shelf space

What: Chinese luxury brands are gaining sales and market share while spending in China keeps falling, raising the risk that European groups will not recover their share when the market rebounds.

Why it is important: Investors value Laopu at about 6 times forward earnings, a fraction of European valuations, despite 61% first-half sales growth and gross margins above 40%, which shows how unsettled the market's view of Chinese luxury remains.

Spending in China's luxury market keeps falling, yet some Chinese luxury brands are growing at extraordinary rates. Kering's stock slid more than 10% on Friday after the Gucci owner reported that Asia-Pacific retail revenue fell 8% in the third quarter, year on year. LVMH's sales in Asia excluding Japan fell 5% excluding currency impacts, and Hermès grew less than expected and called China "very difficult." Bain estimates that mainland China's personal luxury market contracted around 19% in 2024 and as much as 5% last year.

Meanwhile, local handbag companies tracked by Bernstein have increased sales by about 51% annually on the country's leading ecommerce platform since 2021. Laopu Gold, dubbed the Hermès of Gold, more than tripled its sales last year, rose another 61% in the first half of this year and has held its gross margin above 40%. It still trades at about 6 times forward earnings, and investors doubt whether homegrown appeal is durable or whether it could translate into global relevance.

The article warns that carmakers BMW and Volkswagen offer a lesson for luxury groups, with Volvo's shares falling as much as 30% on collapsing Chinese sales.

IADS Notes: Chinese luxury brands such as Laopu Gold, Mao Geping, Songmont and ICICLE grew through higher prices, scarcity, vertical integration and digital distribution that bypasses travel retail, even after two consecutive years of contraction in China's personal luxury market (Luxury Tribune, May 2026). Western retailers were adjusting in parallel, with Galeries Lafayette closing its Beijing flagship and moving toward smaller formats, digital engagement and localised curation as domestic brands gained ground (Jing Daily, May 2026). Pressure on European groups has since intensified. China's 20% levy on offshore-trust back taxes weighed on ultra-wealthy spending, a group that had proved more resilient than middle-class consumers, while growth concentrated in fewer brands and categories (Reuters, October 2026). LVMH's fashion and leather goods division fell 5% organically in the third quarter as demand from Chinese clients dropped by a midteens percentage, ending the brief return to growth of the second quarter (WWD, October 2026). Kering's second quarter, its first comparable sales increase in three years, came with a dedicated China plan for more selective, experience-driven consumers (WWD, July 2026).

China's luxury brands are ready to elbow western rivals aside

What: London has closed a half-mile stretch of Oxford Street to traffic, between Selfridges and Ikea, as part of a long-term £150mn plan to turn it into a pedestrian destination that rivals Fifth Avenue and the Champs-Élysées.

Why it is important: Flagship demand on Oxford Street is moving toward large-format, experiential stores and Asian entrants, the same logic that is pushing luxury brands and John Lewis toward hospitality-led flagships that compete with department stores for the same visits.

A half-mile stretch of Oxford Street, between Selfridges and Ikea, closes to traffic on Monday after decades of failed proposals. The closure is part of a long-term £150mn plan to create public spaces for promotional events and compete with Fifth Avenue, Via del Corso and the Champs-Élysées.

The street is recovering from a difficult decade marked by the demise of Debenhams and House of Fraser, then the pandemic. According to Savills, vacancies reached 13.7% in 2022, and western rents fell from £1,100 per sq ft in 2016 to £600 in 2021. Over the past year, 39 store deals were signed and vacancies dropped below 1%. Western rents average £850 per sq ft, still more than 20% below the 2016 peak, and footfall remains below pre-pandemic levels.

Miniso and Pop Mart have joined Zara, Nike and Warner Bros in investing in flagships. Miniso will convert the former HMV space into a theme park-style store, while Warner Bros opens its Harry Potter store next month. Property agents credit the Elizabeth Line for helping persuade some top brands to reinvest. Most retailers back the scheme, including John Lewis, although the plan remains controversial with residents and Londoners facing changed transport routes.

IADS Notes: Oxford Street's pedestrianisation follows a policy push that already had retailer backing when the Financial Times reported in February 2026 that the mayor was advancing the plan, with vacancies down to a historic low of 0.5% by May 2025 on more than £300 million of private investment. The experiential logic behind the flagships now taking space reflects a wider shift: Forbes reported in September 2026 that luxury brands are concentrating capital in fewer, larger flagships with hospitality, events and private-client areas, competing with department stores for the same visits. John Lewis has applied that logic on the street itself, and its Press Release, August 2026 on the Oxford Street Platter flagship put hospitality above 20% of in-store transactions. The arrival of Asian brands in Western retail markets was already visible in Inside Retail, January 2026, which covered Pop Mart's plan for more than 20 US mall stores built around experiential formats. On the policy side, Retail Week reported in September 2026 that Selfridges' operating profit rose 88% to £79.7m while its CEO kept calling for the return of tax-free shopping for international visitors.

Oxford Street bans cars in bid to revive its fortunes

What: Fitch Ratings upgraded Grupo Falabella's international credit rating to BBB from BBB- with a stable outlook, and raised its national rating and Sodimac's to AA(cl) from AA-(cl).

Why it is important: The upgrade shows that a diversified retail ecosystem, combined with margin discipline, can turn a credit downgrade into a sustained investment-grade trajectory within three years.

Fitch Ratings has raised Grupo Falabella's international risk rating to BBB from BBB-, with a stable outlook. The agency also lifted the long-term national rating of the group and Sodimac to AA(cl) from AA-(cl), and reaffirmed the rating of the company's shares at Primera Clase Nivel 1(cl).

According to Fitch, the upgrade reflects the group's strategy to strengthen its business and financial profile, supported by a solid market position, diversified operations and improved margins. These factors have allowed Falabella to accumulate cash, reduce debt and lower its leverage.

CEO Alejandro González Dale described the decision as recognition of consistent strategy execution and higher profitability, adding that the group is well placed to deepen ecosystem synergies and pursue new opportunities. CFO Juan Pablo Harrison pointed to stronger cash generation, a sustained reduction in indebtedness and disciplined resource management, noting that liquidity and a well-structured debt maturity profile give the company flexibility to finance its investment plan.

The upgrade follows record 2025 results, with net income excluding the fair-value accounting effect of US$897 million and EBITDA of US$2,144 million, up 34% on 2024. So far in 2026, net income totals US$497 million, up 17.9% on the first half of 2025.

IADS Notes: Fitch's move to BBB comes a year after the agency restored Falabella's investment grade at BBB-, following a reduction in the debt-to-EBITDA ratio from 8.2 to 1.9 times within eighteen months (Perú Retail, October 2025). Record 2025 results have since reinforced that deleveraging, with revenue up 9% and EBITDA up 34% on tighter inventory management and cost control (Modaes, February 2026). So has S&P Global Ratings' own upgrade to investment grade, which cited EBITDA margins of 14.6% and the resilience of the group's diversified model across retail, home improvement, shopping malls and banking (Press Release, April 2026). The financial flexibility Fitch highlights now supports a 40% increase in annual investment to $900 million in 2026, covering 17 new stores, store and mall remodels, and technology upgrades (Modaes, January 2026).

Fitch upgrades Grupo Falabella's rating to BBB

What: Harrods now ranks Diwali among its major cultural moments, increasing investment in Indian designers, beauty, gifting and food as footfall from Indian customers on Diwali grows 50%.

Why it is important: Diwali now joins Chinese New Year and Ramadan in Harrods' calendar of cultural festivals, showing how department stores turn each community's celebration into a trading season that drives footfall.

Harrods is running a storewide Diwali campaign from October through Nov. 8, with live music, in-store activations, a Diwali Gift Box and a light display on its Brompton Road facade over the festival weekend. Diwali now sits alongside Christmas, Spring Festival, Ramadan and Eid in the retailer's cultural calendar, and footfall from Indian customers rose 50% on Diwali itself. Shoppers include London's British South Asian community and visitors from India, South Asia and the Gulf. Harrods did not disclose Diwali revenue or average spend.

Beauty and the Food Halls see the strongest uplift, with gifting running across the store. The programme includes a Ranavat masterclass, a Diwali Saffron Milk Cake inspired by barfi, and Harrods tea tastings and sampling from Viras and Läderach. Gift Box sales beat expectations last year, so Harrods has increased volumes.

In fashion, Harrods has introduced exclusive couture from Gaurav Gupta in its first-floor eveningwear department and increased investment in Indian designers such as Verandah, 100Hands and Kartik Research. Because Diwali precedes the Christmas peak, it has reshaped fourth-quarter planning for eveningwear and occasion wear, with increased stock across selected Indian designers. Harrods aims to convert Diwali shoppers into year-round customers.

IADS Notes: Harrods' Diwali campaign adds to a calendar of cultural festivals the store already invests in. For Chinese New Year, it used collaborations with Chinese creatives, a Labelhood pop-up and in-store events to sustain international footfall after the end of UK tax-free shopping (Fashion Network, February 2026). Ramadan has meanwhile joined Christmas and Chinese New Year as a key luxury season. Retailers including Harrods are investing in exclusive capsules and campaigns attuned to the culture, and the Middle East luxury market grew 6% to $12.8 billion in 2025 (WWD, February 2026). The focus on Indian shoppers also reflects India's emergence as a luxury growth market. High import duties and limited retail infrastructure mean many wealthy Indians still prefer to buy abroad (Financial Times, January 2026), and visitors from India are among the Diwali customers Harrods now targets. The Gaurav Gupta exclusive follows the approach of Harrods' Christmas partnership with Brunello Cucinelli, which paired collections made specifically for the store with installations and pop-ups to stand out in the holiday season (Fashion Network, December 2025).

Harrods steps up its Diwali offer as Indian footfall rises 50%