What: Central Retail is divesting La Rinascente to concentrate resources and management attention on its core Southeast Asian markets.

Why it is important: This move reflects a strategic shift toward high-growth markets, aligning with recent trends of regional consolidation and operational focus.

Central Retail is finalising the sale of its Italian department store chain, La Rinascente, to its sister company Central Group, marking a decisive move to streamline its portfolio and focus on Southeast Asia. The divestment, which represents just 7% of Central Retail’s revenues, is expected to strengthen the company’s balance sheet, free up capital for expansion in Thailand and Vietnam, and enable a special dividend for shareholders. The decision is also driven by the complex regulatory environment in Italy, which has proven costly and unpredictable compared to the more favorable business climates of Thailand and Vietnam. Central Retail’s recent financial results have been mixed, with overall revenues declining and persistent underperformance in segments like Nguyen Kim in Vietnam. Despite these challenges, the company continues to expand its presence in Southeast Asia, opening new malls and launching wholesale formats to capture growth in emerging markets. The shift away from Europe is timely, as macroeconomic headwinds and operational inefficiencies underscore the need for a sharper regional focus.

IADS Notes: Central Retail’s divestment of La Rinascente and renewed focus on Southeast Asia mirrors a broader industry trend of portfolio consolidation and prioritisation of high-growth markets, as reported by The Nation in September 2025. This strategy is reinforced by Inside Retail’s March 2025 analysis of Central’s expansion and omnichannel innovation, as well as the persistent operational and regulatory challenges in Vietnam highlighted in the same month. The impact of tourism decline and consumer debt in Thailand, noted by Inside Retail in August 2025, further supports the company’s decision to concentrate on operational efficiency and local market engagement. McKinsey’s March 2025 review confirms the region’s robust growth prospects, validating Central Retail’s strategic realignment.

Central Retail trims Europe ties to refocus on Southeast Asia

What: Battersea Power Station’s owners are considering a potential £2bn sale of the landmark retail and leisure destination while remaining open to strategic investment proposals.

Why it is important: The involvement of international investors and prominent retail brands underscores the globalisation and evolving dynamics of the UK retail sector.

Battersea Power Station, a major London retail and leisure destination spanning nearly 290,000 square feet and home to over 150 stores including leading brands such as Arc’teryx, Gant, Jigsaw, Marks & Spencer, and Nike, is being considered for a potential £2bn sale by its Malaysian investment consortium owners. While advisers have been appointed to manage offers following investor interest, the owners emphasize there are no immediate plans to exit, reaffirming their commitment to maximizing the site’s value and future potential. The consortium’s approach reflects a broader industry trend of evaluating strategic partnerships and asset monetisation as retail property markets evolve. Battersea’s transformation from a historic power station into a vibrant retail hub, following a £5bn redevelopment, highlights the importance of tenant mix and placemaking in destination retail. The site’s global ownership and appeal to international investors and brands further illustrate the increasing globalisation and complexity of the UK retail landscape. 

IADS Notes: The potential sale of Battersea Power Station mirrors recent high-value retail property transactions, such as Landsec’s acquisition of Liverpool One in December 2024 (“Landsec buys Liverpool One, now owns 7 of top UK malls,” Fashion Network), which demonstrated confidence in prime UK retail assets. The importance of tenant mix is reinforced by British Land’s success at Broadgate Central in February 2025 (“British Land brings raft of fashion retailers to prime location,” Retail Week) and the high occupancy at The Twins Tower I in Hong Kong in March 2025 (“Luxury brands flock to Lifestyle’s first mall tower in Kai Tak,” Hong Kong Business). Battersea’s international ownership aligns with ongoing global investment trends in retail real estate, as seen in Southeast Asia (“Are investors pulling out of Southeast Asia?” The Diplomat, March 2025) and the Middle East (“Frasers enters new retail partnership to support expansion in Middle East,” Retail Week, February 2025). The owners’ consideration of strategic partners and asset monetisation reflects broader industry shifts in real estate strategy observed in December 2024 (“US department stores’ real estate strategies reveal divergent approaches,” BoF) and April 2025 (“Trent's JV deal for Zara, Massimo has a 'put' edge,” India Economic Times).

Battersea Power Station owners mull sale

What: WOW is redefining department store retail by prioritising seamless customer journeys, local identity, and talent development over traditional omnichannel strategies.

Why it is important: This shift reflects a broader industry move toward integrated retail experiences.

Dimas Gimeno, founder of WOW and former president of El Corte Inglés, presents a compelling argument for abandoning the traditional separation between physical and digital retail channels in favor of a unified “phygital” approach. He contends that omnichannel strategies have failed because they merely digitize existing physical processes rather than reimagining retail from a digital-first perspective. Gimeno emphasizes that today’s customers move fluidly between online and offline environments, seeking seamless experiences and authentic engagement. He highlights the enduring value of physical stores, not only as spaces for higher conversion and loyalty but also as vital touchpoints for brand development and customer satisfaction. Gimeno also underscores the importance of local identity, urging small businesses to leverage their unique offerings and customer relationships, while advocating for collaborative digital platforms to support their growth. Finally, he stresses the need for skilled, motivated sales staff and robust talent development to deliver exceptional customer experiences and ensure long-term profitability. 

IADS Notes:  Gimeno’s vision for unified retail echoes recent industry trends, with Indian and Philippine retailers integrating digital and physical experiences to create hybrid models, as reported in “Indian malls vs online retail: the real competition is now time” (ET Retail, August 2025) and “Philippine retailers told to boost omnichannel space” (Inside Retail, November 2024). The continued relevance of physical stores as innovation and loyalty hubs is reinforced by “Why the global flagship still matters” (Inside Retail, August 2025) and “The future of loyalty, according to luxury department stores” (Inside Retail, May 2025). His focus on local identity aligns with the resurgence of specialty boutiques and curated retail, highlighted in “Multi-brand retail: independent boutiques are making a comeback” (BoF, September 2025) and “Department stores still matter – especially when they champion emerging brands” (Monocle, May 2025), while the emphasis on sales staff development mirrors the sector’s investment in talent transformation and AI augmentation, as documented in “MAD & Comité Colbert study on frontline talents recruitment issues” (MAD, June 2025), “Imagine this... AI agents and the 'everywhere all at once' sales team” (BCG, September 2025), and “CXG Report: The Client Advisor Effect” (CXG, December 2024).

WOW’s founder Dimas Gimeno advocates for a unified “phygital” retail model 

What: Shinsegae Duty Free is withdrawing from Incheon Airport’s DF2 zone due to sustained losses and operational challenges.

Why it is important: The move signals broader industry difficulties and may reshape competition in airport retail as new licenses become available.

Shinsegae Duty Free has decided to exit its operations in the DF2 zone at Incheon International Airport, citing ongoing financial losses and the need to improve operational efficiency. This withdrawal, set for completion by April 2026, comes as the duty-free sector faces mounting challenges, including high exchange rates, an economic slowdown, and reduced spending among key customer groups. Shinsegae’s request for rent adjustments was rejected by the airport authority, further exacerbating the situation. The company will now focus on its remaining airport and downtown locations, aiming to stabilise its business amid a turbulent market. This move follows the recent exit of Hotel Shilla from the DF1 zone, indicating that even major players are struggling to maintain profitability in the current environment. The anticipated rebidding for vacated duty-free licenses is expected to alter the competitive landscape at Incheon, reflecting the broader pressures and ongoing transformation within the travel retail sector.

IADS Notes: Shinsegae’s withdrawal from Incheon’s DF2 zone, as reported by Inside Retail in October 2025, exemplifies the mounting losses and operational inefficiencies affecting Korea’s duty-free sector. This trend is consistent with sluggish demand and macroeconomic headwinds highlighted in May 2025, as well as stagnating department store growth noted by Maeil Business Newspaper in January 2025. The broader context of Korean retailers seeking new markets, discussed in Inside Retail in January 2025, and the evolving airport retail landscape, analysed in September 2025, further illustrate the sector’s ongoing transformation and the competitive implications of these strategic exits.

Shinsegae Duty Free exits Incheon Airport over mounting losses

What: Saks Global’s leadership shakeup, including the exit of Emily Essner and other senior executives, is part of a broader strategy to streamline operations and strengthen financial performance.

Why it is important: The executive changes highlight the operational and financial pressures Saks Global faces post-merger, echoing recent industry concerns about vendor relations and cost management.

Saks Global has initiated a significant management overhaul, marked by the departure of Emily Essner and other key executives, as part of its ongoing efforts to streamline operations and address mounting financial pressures following its acquisition of Neiman Marcus. The company is accelerating the integration of its luxury retail brands, consolidating leadership roles, and reassigning responsibilities to drive efficiency and achieve ambitious synergy targets. These changes come amid persistent challenges, including strained vendor relationships due to delayed payments and revised terms, as well as declining revenues and deepening losses. The appointment of new leaders, such as Brandy Richardson as CFO, underscores the urgency of restoring financial stability and vendor confidence. Additionally, Saks Global is exploring strategic options to raise capital, including the potential sale of a minority stake in Bergdorf Goodman. The company’s transformation reflects the complexities and risks inherent in large-scale retail mergers, as it seeks to balance operational efficiency, vendor trust, and long-term competitiveness in a volatile luxury market. 

IADS Notes: Throughout 2025, Saks Global’s leadership transitions and integration efforts have been closely monitored, with major personnel changes and the merging of buying teams reported in "Saks Global resets the buying team" (WWD, April 2025) and "Stores veteran departs as Saks Global further streamlines operations" (Retail Dive, June 2025). Vendor payment issues and industry backlash were highlighted in "Saks new payment terms backfired" (BoF, February 2025) and "The whirlwind ride with Saks Global, vendors speak out" (WWD, March 2025). Financial pressures and strategic moves, including the consideration of selling a minority stake in Bergdorf Goodman, were detailed in "Saks Global’s 2025 Q2 sales show continued declines" (WWD, October 2025) and "Saks Global to sell a minority stake in Bergdorf Goodman?" (WWD, September 2025). These developments illustrate the multifaceted challenges Saks Global faces as it navigates post-merger transformation, operational efficiency, and vendor relationship management.

Saks Global reorganises top management, Emily Essner leaving

What: Pop Mart has opened its first Middle Eastern store at Hamad International Airport in partnership with Qatar Duty Free, introducing exclusive collectibles and experiential retail.

Why it is important: Pop Mart’s entry signals a broader trend of cross-industry collaboration and innovative marketing strategies in the region’s retail sector.

Pop Mart has launched its inaugural Middle Eastern store at Hamad International Airport, collaborating with Qatar Duty Free to create a retail experience that merges pop culture with travel. The store’s opening was marked by a travel-themed fashion show and the debut of an exclusive collection, the ‘Twinkle Twinkle Wonderful Journey Series,’ which includes travel accessories and limited-edition collectibles. This initiative reflects a growing emphasis on experiential retail, with Pop Mart leveraging influencer marketing and immersive events to engage travelers and local consumers alike. The partnership aims to set a new benchmark for airport retail by blending Qatar’s cultural identity with Pop Mart’s playful brand, offering a unique and memorable shopping experience. The launch follows Pop Mart’s earlier Middle Eastern debut in Abu Dhabi and capitalises on the brand’s rising popularity, particularly among younger, digitally connected shoppers. This move underscores the increasing importance of exclusive products, localised experiences, and cross-industry collaborations in shaping the future of travel and regional retail.

IADS Notes:  Pop Mart’s Middle East expansion, as outlined in Inside Retail’s Asian Retail Outlook 2025 (February 2025), exemplifies the globalisation of Asian brands and the adoption of experiential, pop-up, and exclusive retail formats. The strategy aligns with trends highlighted by Inside Retail and LUXUS PLUS in early 2025, where brands use immersive, culturally integrated events to drive engagement. The success of Pop Mart’s Labubu collectibles in Europe, reported by Cominmag.ch in June 2025, and the broader shift toward experience-centric airport retail, as analysed by The Robin Report in January 2025, further illustrate how this launch reflects and accelerates the evolution of global retail.

Pop Mart opens first store in the Middle East

What: Hong Kong retail sales rose 5.9% in September, driven by tourism and luxury spending, while fashion and apparel sales declined.

Why it is important: The data highlights how tourism and changing consumer preferences are reshaping Hong Kong’s retail landscape, consistent with recent analyses.

Hong Kong’s retail sector posted a 5.9% year-on-year increase in sales for September, reaching HK$31.3 billion, marking the fifth consecutive month of growth. This expansion was largely fueled by a surge in tourism, particularly from Mainland China, and robust performance in luxury categories such as jewellery and watches, which saw a 9.1% rise. However, the overall positive figures conceal a significant downturn in fashion and apparel, with sales of clothing, footwear, and related products dropping by 10.2%, reversing gains from the previous month. While improved consumer sentiment and sustained inbound tourism are expected to support retail activity in the near term, the sector’s recovery remains uneven. The contrast between thriving luxury segments and struggling mass-market fashion highlights a shift in consumer behavior, as visitors and locals alike increasingly prioritize high-end purchases and experiences over everyday apparel. This evolving landscape underscores the need for retailers to adapt strategies to address changing preferences and the growing influence of tourism on retail dynamics. 

IADS Notes: Reports from August 2025 (“Hong Kong’s retail recovery accelerates as August sales rise by 3.8%”, South China Morning Post) and July 2025 (“Hong Kong retail sales gain 1.8% in July amid rising tourist traffic”, Fashion Network) confirm that rising tourist arrivals, especially from Mainland China, have not led to proportional retail spending, with luxury categories outperforming mass-market segments. Analyses from March 2025 (“Hong Kong retail sales decline continues”, Inside Retail) and November 2024 (“Nine months of decline: Hong Kong retail sales fall 7.3 per cent in November”, Inside Retail) further highlight the persistent underperformance of apparel and footwear, reflecting a fundamental shift in consumer behavior and the need for retailers to adapt to a changing retail environment.

Hong Kong retail sales rise 5.9% in September as fashion sector weakens

What: American live shopping platform Whatnot raises $225 million in Series F funding, doubling its valuation to $11.5 billion as live shopping gains mainstream traction.

Why it is important: This development reflects the accelerating adoption of live shopping and growing investor confidence in new retail models, as seen in recent industry trends.

Whatnot has raised $225 million in Series F funding, bringing its valuation to $11.5 billion. Since its founding in 2019, the company has attracted nearly $1 billion in investment, highlighting strong support from investors and the growing appeal of live shopping. Whatnot has expanded internationally and recently entered the UK sportswear market, while its customer retention rate now exceeds 80% month-on-month. The platform’s gross merchandise value for 2025 has already surpassed $6 billion, more than double its total for 2024. Competing with Amazon and TikTok Shop, Whatnot focuses on building engaged communities and supporting small businesses. Its recent growth and expansion reflect a shift in retail, as live shopping becomes more widely adopted and platforms compete to attract both sellers and buyers.

IADS Notes: Whatnot’s funding and expansion, reported in October 2025, reflect wider changes in retail, such as TikTok Shop’s rapid growth in the UK and the rise of social commerce (Forbes, February 2025; Journal du Net, January 2025). The move into sportswear is in line with strategies by Decathlon and Frasers Group (Fashion Network, November 2024; Retail Week, November 2024). The focus on customer retention and community engagement is also seen at retailers like Selfridges and Nykaa (Fashion Network, May 2025; Inside Retail, September 2025), while competition from TikTok Shop and Amazon continues to shape the sector (BoF, December 2024)

Whatnot announces another fundraising round, valuation now up to $11.5bn

What: Marketers are adopting new strategies on Reddit—including paid campaigns, organic content, and third-party collaborations—to capitalize on its expanding user base and integration with AI search engines.

Why it is important: As traditional social media channels become saturated, leveraging Reddit’s unique community dynamics and AI relevance offers brands a new competitive edge.

Brands are increasingly turning to Reddit as a key platform for digital marketing, driven by its rapidly growing user base and the platform’s rising influence in AI-powered search results. Marketers are deploying a mix of paid advertising, reviving old threads, fostering organic discussions, and collaborating with third-party groups to maximize engagement and visibility. This shift reflects a broader trend of brands seeking alternatives to traditional social media channels, which are becoming less effective due to saturation and shifting user behaviors. Reddit’s integration into AI search engines like ChatGPT and Google Gemini further amplifies its importance, as conversations and content from the platform are now frequently referenced in AI-driven product discovery. By adapting their strategies to Reddit’s community-driven environment and its growing role in generative search, brands can enhance their online presence, reach new audiences, and gather authentic consumer insights in an increasingly competitive digital landscape. 

IADS Notes: The surge in brand advertising on Reddit reflects a broader industry shift toward platforms that combine authentic community engagement with data-driven marketing strategies. As highlighted by BoF in July 2025, major brands are leveraging Reddit’s community-driven environment to gather unfiltered consumer feedback and validate purchase decisions, with 71% of users utilizing the platform for pre-purchase research. This trend aligns with the increasing integration of Reddit content into AI-driven search engines, as Inside Retail (September 2025) and Retail Dive (September 2025) report that AI agents now mediate product discovery and brand visibility, making Reddit a critical channel for online presence. Brands are adopting a mix of paid campaigns, thread revival, organic content, and third-party collaborations to maximize reach and engagement, as detailed by BoF. The move to Reddit and similar platforms is part of a wider diversification strategy, as traditional social media channels become saturated, with Forbes (February 2025) noting the growing importance of alternative digital platforms like TikTok and Netflix. Finally, the rise of user-generated content and AI-powered marketing, as discussed in the Financial Times (September 2025) and Forbes (April 2025), is fundamentally transforming how brands connect with consumers, requiring a balance between efficiency, authenticity, and data-driven insights to remain competitive in the evolving digital landscape.

Brands Flock to Reddit, increasing ad spend and enhancing AI search

What: Pop Mart’s Labubu character is entering the luxury market through high-profile collaborations, celebrity endorsements, and premium product launches.

Why it is important: Pop Mart’s rapid growth and diversification highlight the importance of innovation and emotional connection in today’s competitive retail landscape.

Pop Mart’s Labubu character is making a significant leap into the luxury sector, propelled by strategic collaborations with established brands like Moynat and high-profile endorsements from figures such as Bernard Arnault. The brand’s move into premium jewelry, exemplified by the launch of an 18-karat rose gold Labubu necklace, demonstrates a deliberate effort to elevate its image and tap into new consumer segments. Labubu’s presence at major events, including the Macy’s Thanksgiving Day Parade and collaborations with Fanatics Collectibles and Uniqlo, underscores the brand’s ability to blend collectible culture with mainstream retail. This approach has resulted in remarkable revenue growth, with The Monsters range contributing $673 million in the first half of 2025, driven by innovative product lines and licensing deals. Pop Mart’s founder, Wang Ning, highlights the surging demand and ongoing production expansion, while interest from global film studios signals further diversification. The brand’s strategy reflects a broader trend in retail, where emotional connection, exclusivity, and experiential engagement are key drivers of sustained success. 

IADS Notes: Pop Mart’s luxury collaborations and Labubu’s elevation into high-end jewelry mirror the industry’s shift toward creative partnerships and experiential retail, as seen with LVMH’s digital engagement and influencer strategies (“LVMH Pivots To Engage Younger Demographics In Asia,” Retail News Asia, October 2025). Bernard Arnault’s endorsement echoes the impact of celebrity-driven campaigns at Galeries Lafayette (“Galeries Lafayette partners with famous French journalist and influencer,” Fashion Network, August 2025). The integration of collectible culture into mainstream retail aligns with Manor’s Labubu events (“Manor creates the buzz thanks to Labubu dolls,”Cominmag.ch, June 2025) and Macy’s holiday activations (“Macy’s and Disney unveil holiday collection,” Press Release, October 2025; “Macy’s kicks off ‘100 Days to Christmas’ with new merchandise, curated gift ideas,” Retail Dive, September 2025). Pop Mart’s rapid growth and diversification are consistent with trends in China’s evolving pop-up retail scene (“China turns 'slow pop-ups' into new retail laboratories,” LUXUS PLUS, January 2025) and Asia’s innovative activations (“Inside the latest pop-up activations in Asia,” Inside Retail, February 2025), where emotional connection and community-building are central to brand expansion.

Pop Mart goes luxe with $2,000 Labubu gold necklace

What: Von Maur’s focus on curation, new brands, and flexible merchandising is driving growth and customer loyalty in a challenging retail landscape.

Why it is important: Von Maur’s approach demonstrates how regional, privately-held department stores can thrive by prioritizing curation, newness, and strong vendor relationships.

Von Maur, a family-owned department store founded in 1872, is defying industry trends by expanding its physical footprint and investing $100 million in store renovations while many national chains are closing locations. With 39 stores across 15 states, the retailer’s strategy centers on curated assortments, frequent newness, and unique brand partnerships, attracting both established and emerging brands eager to reach customers in secondary and tertiary markets. Von Maur’s merchandising team leverages its private ownership to make rapid, flexible decisions, bypassing the bureaucratic hurdles common in larger organizations. This agility enables the retailer to quickly introduce new brands across all locations, responding directly to customer feedback and market trends. The absence of private labels and a minimal reliance on discounting further distinguish Von Maur from competitors, fostering loyalty among shoppers who value discovery and consistent service. By focusing on curation and building strong relationships with vendors, Von Maur continues to grow its customer base and maintain relevance, even as the broader department store sector faces contraction and disruption.

IADS Notes: Von Maur’s steady expansion and investment in physical stores stand in stark contrast to the widespread closures and retrenchment seen among larger department store chains. As detailed by the Austin American Statesman in December 2024, Macy’s accelerated its store closure plan to 65 locations, reflecting the mounting pressure on legacy retailers to transform their business models. Meanwhile, The Robin Report in May 2025 highlights how family-owned Von Maur and Boscov’s have emerged as sleeper success stories, thriving through controlled expansion, local focus, and traditional retail values. Von Maur’s $100 million renovation plan and commitment to elegant, well-curated environments underscore the advantages of private ownership, which allows for flexible, long-term strategies free from the constraints of public market pressures. Monocle’s May 2025 analysis emphasizes the enduring relevance of department stores that champion emerging brands and maintain a strong curation ethos, while Inside Retail (May 2025) and Retail Dive (December 2024) show how department stores are evolving to support DTC and niche brands, providing critical market access beyond major urban centers. Finally, Retail Week (August 2025) and The Retail Bulletin (April 2025) reinforce that well-run department stores with strong service standards and community engagement can remain relevant and competitive, even as the sector faces unprecedented disruption.

The keys of Von Maur’s success

What: The rise of advanced Android malware such as Herodotus is exposing critical vulnerabilities in retail mobile apps, payment systems, and customer security.

Why it is important: The increasing use of malware-as-a-service platforms highlights how cybercriminals are adapting faster than traditional retail security protocols, demanding new strategies.

The retail industry is grappling with a surge in sophisticated cyber threats, as advanced Android malware like Herodotus targets mobile retail applications, payment systems, and sensitive customer data. Herodotus, distributed as a malware-as-a-service platform, leverages techniques that mimic human behavior to evade detection, making it especially dangerous for retailers who rely on mobile channels for sales and customer engagement. This new breed of malware is capable of stealing banking credentials, intercepting two-factor authentication codes, and executing complex attacks that bypass conventional security measures. The proliferation of such threats, often delivered through SMS phishing and fake apps, has led to a marked increase in account takeovers and financial losses across the sector. As cybercriminals continue to innovate and outpace existing security protocols, retailers are under mounting pressure to adopt more robust, adaptive cybersecurity strategies to safeguard their operations and maintain customer trust in an increasingly digital retail landscape.

IADS Notes: Throughout 2025, the retail sector’s vulnerability to advanced malware and cybercrime has intensified. July’s cross-platform malware discovery and May’s record wave of account takeovers compromised millions of retail accounts. August 2025 reports confirmed ransomware now accounts for 30% of security incidents, with high-profile breaches at M&S and Harrods resulting in substantial losses. These developments, alongside April’s comprehensive threat analysis, underscore the urgent need for robust, layered security protocols and rapid response as retailers face increasingly sophisticated, financially motivated cyber threats.

New Herodotus Android malware fakes human typing to avoid detection

What: Lotte Retail is advancing customer-centric digital transformation by integrating AI, retail media networks, and data privacy measures across its extensive store network.

Why it is important: Lotte’s approach highlights the convergence of digital transformation, retail media, and data privacy.

Lotte Retail is placing customer experience at the heart of its digital transformation strategy, as emphasised by CEO Kim Sang-hyun at the APEC CEO Summit. Despite the rapid growth of e-commerce, Kim noted that over 70% of retail sales in Asia still occur in physical stores, underscoring the enduring value of in-store engagement, personalisation, and added value. Lotte is deploying a suite of advanced digital solutions—including AI-driven product analysis, multilingual kiosks, 3D virtual consultations, and unmanned payment systems—across its 12,000 domestic outlets to elevate both customer experience and operational efficiency. The company is also embracing retail media networks, installing in-store screens to deliver targeted advertising and collect valuable customer data, thereby generating new revenue streams and insights for improved merchandising. Kim acknowledged the challenges posed by data privacy and regulatory requirements, stressing the need for robust standards and transparency. He further highlighted the importance of public-private cooperation and sustainability as retail adapts to cross-border commerce and environmental concerns.

IADS Notes: Lotte Retail’s strategy mirrors industry trends identified in March 2025 (“How AI-driven hyper-personalisation is transforming retail,” Inside Retail) and November 2024 (“The great personalisation divide in retail,” BCG), where hyper-personalisation and community engagement are increasingly vital. The adoption of advanced digital solutions aligns with December 2024 (“China's retail AI adoption hits 230M users as local platforms take lead,” SCMP) findings on interactive store technologies and rapid AI integration. The expansion into retail media networks reflects July 2025 (“From browsing to buying: the quiet power of retail media,” MBS) and June 2025 (“How new revenue streams are transforming traditional retail,” BCG) reports on new revenue models, while the emphasis on data privacy and regulatory compliance echoes concerns raised in September 2025 (“Bain & Company: Technology Report 2025”) and November 2024 (“Data privacy and trust shaping consumer preferences,” Forbes), confirming the importance of trust and security in digital retail.

Lotte Retail chief stresses customer focus in digital era

What: South Korean retailers are launching international campaigns and exclusive online promotions to attract global shoppers ahead of Black Friday.

Why it is important: These efforts underscore the competitive drive among Korean retailers to capture global demand during high-traffic retail periods.

South Korean retailers are intensifying their international outreach by launching targeted campaigns and exclusive online promotions in anticipation of Black Friday. Brands such as W Concept are rolling out two-week events with limited-time offers, aiming to attract overseas customers and capitalise on the global shopping festival. This strategy leverages digital platforms to extend the reach of Korean fashion and lifestyle brands, positioning them to compete more effectively with international players. The focus on exclusive deals and online engagement is designed to boost cross-border e-commerce sales, particularly as global shoppers increasingly seek unique products and value-driven promotions. By aligning their marketing efforts with major shopping events, South Korean retailers are not only enhancing their brand visibility but also driving significant foreign sales growth. This approach reflects a broader industry trend toward digital innovation and internationalisation, as domestic consumption faces challenges and global demand becomes a critical growth driver.

IADS Notes: In October 2025, Lotte Department Store reported a 40% surge in foreign sales during the golden holidays, attributing this growth to targeted promotions for Chinese tourists and the rising appeal of K-fashion, as detailed by ChosunBiz. This aligns with the broader industry push observed in September 2025, when South Korean retailers intensified digital campaigns and experiential offerings to attract Chinese tourists ahead of the resumption of visa-free entry, according to Inside Retail. The effectiveness of these strategies was further demonstrated in October 2025, when Korean department stores experienced over 25% daily sales increases during the Chuseok holidays, driven by targeted campaigns and a strong return of foreign shoppers, as reported by Korea JoongAng Daily. These developments reflect a strategic pivot by leading retailers such as Lotte and Shinsegae, who, as noted by Inside Retail in January 2025, have expanded internationally and diversified their formats to counteract domestic consumption slumps. The global context is underscored by the December 2024 VMSD report, which highlighted a record $74.4 billion in Black Friday online sales, illustrating the growing importance of digital platforms, exclusive deals, and extended promotional periods in driving cross-border e-commerce and retail performance.

South Korean retailers target global shoppers ahead of Black Friday

What: Korean department stores are expanding cultural centres and academy-style spaces to increase customer engagement and dwell time.

Why it is important: This reflects a broader trend of experiential retail, aligning with recent strategies to drive foot traffic and loyalty.

Korean department stores are intensifying their focus on cultural centres, transforming academy-style spaces to offer a diverse range of classes and workshops in art, cooking, wellness, and traditional culture. This renewed investment aims to keep customers in-store longer and differentiate these retailers from competitors, marking a new phase in retail competition beyond the food-hall boom of recent years. While cultural centres contribute less direct revenue than food halls, they play a crucial role in driving foot traffic and fostering deeper customer engagement. Shinsegae Department Store’s flagship academy, recently expanded and renovated, now offers a broader programme lineup, including K-culture classes for foreign residents and tourists. Lotte Department Store is targeting younger customers by increasing art-class offerings and launching interactive programs, while Hyundai Department Store is introducing workplace-tailored courses. This evolution reflects a strategic shift in offline retail, with department stores redefining themselves as experiential destinations that blend education, culture, and shopping, ultimately supporting loyalty-based strategies and the “lock-in effect.”

IADS Notes: The renewed emphasis on cultural centres in Korean department stores mirrors a global trend, with leading retailers investing in innovative programming to attract younger demographics and foster loyalty. This experiential approach is evident in department stores worldwide, such as Printemps NYC and Selfridges, which are prioritising dwell time and immersive environments. By integrating education, culture, and entertainment, department stores are evolving into vibrant destinations that blend shopping with meaningful engagement, ensuring continued relevance amid changing consumer expectations (April 2025, "Why community might be the missing piece to revive department stores," Forbes; April 2025, "Department stores can be a beacon for retail," The Retail Bulletin; August 2025, "How Seriously Are Department Stores Struggling With Gen Z?" Retail Wire; August 2025, "Lotte department store will significantly expand art courses," Maeil Business Newspaper; August 2025, "In Korea, department stores are a magnet for babies and their moms," Korea Herald).

Korean department stores bet bigger on cultural centres to keep customers longer

What: Wellness members clubs are rapidly expanding as luxury third spaces, blending social, fitness, and hospitality experiences for affluent urban consumers.

Why it is important: This expansion reflects a shift in luxury retail toward experiential, community-driven spaces.

Wellness members clubs are emerging as a significant force in the luxury retail sector, offering a blend of social, fitness, and hospitality experiences tailored to affluent city dwellers. These clubs, such as Othership, Continuum, and Proper Club, are redefining the concept of “third spaces” by providing environments where social connection and well-being are central. The trend is driven by a growing cultural emphasis on health optimisation and the need for authentic social interaction, particularly among Gen Z and Millennials who are moving away from traditional nightlife and retail in favour of wellness-focused communities. As the sector grows, established players like Soho House and Equinox are integrating wellness amenities to remain competitive, while new entrants invest heavily in innovative facilities and programming. However, the rapid proliferation of these clubs raises concerns about subscription fatigue and market saturation, challenging operators to maintain differentiation and long-term loyalty. The evolution of wellness clubs signals a broader shift in luxury retail, where experiential and community-driven offerings are becoming essential for attracting and retaining high-value customers.

IADS Notes: Recent analysis including “Why high-end retail players are embracing private member clubs” (Inside Retail, Sep 2025), and “Retreats, resorts, residences: Why brands are investing in luxury third spaces” (Inside Retail, Sep 2025), confirms that private member clubs are becoming the next-generation retail, with brands investing in holistic lifestyle platforms and experiential programming. The competitive landscape is intensifying as traditional clubs and luxury gyms integrate wellness offerings, while Gen Z and Millennials increasingly seek wellness-focused social spaces, as highlighted in “Gen Z and Millennials are redefining what items are ‘necessities’” (WWD, May 2025). This rapid expansion also brings concerns about subscription fatigue and market saturation, echoing challenges identified in these recent industry reports.

The wellness members club boom, a new luxury retail segment

What: Liverpool’s fashion sales have slowed, with profitability now relying on e-commerce and financial services.

Why it is important: The trend underscores the vulnerability of traditional retail categories and the need for operational adaptation.

Liverpool, Mexico’s largest department store chain, is experiencing a notable slowdown in its fashion segment, with apparel, footwear, and accessories underperforming in the third quarter of 2025. Despite an overall increase in revenue, the company’s profit continues to decline, pressured by rising inventories and a 2.2 percentage point drop in profit margin. Efforts to stimulate fashion sales through campaigns such as back-to-school and mid-season promotions have yielded mixed results amid cautious consumer sentiment. As a result, Liverpool is increasingly dependent on other business lines, with real estate and financial services showing robust growth and helping to offset weaknesses in traditional retail. E-commerce has also become a vital pillar, now ranking as the fourth fastest-growing business for the group, with more than half of online sales paid for using Liverpool or Suburbia credit cards. However, the company faces ongoing challenges from increased operating expenses, higher tariffs on footwear, and rising delinquency rates on credit cards. Liverpool’s strategy now hinges on maintaining sufficient inventory for the holiday season and leveraging its digital and financial platforms to sustain profitability.

IADS Notes: Liverpool’s third quarter results in 2025 confirm a sector-wide shift, as digital expansion, financial services, and real estate drive growth while traditional retail categories like fashion struggle. This mirrors trends seen across Latin America, where digital transformation and diversification have supported revenue but not fully alleviated margin pressures. The company’s operational focus and omnichannel strategies align with broader industry efforts to adapt, as highlighted in “El Puerto de Liverpool reports 4.4% revenue growth in 2025 Q3” (October 2025, Press Release), “El Puerto de Liverpool Q1 sales increase by 10%, profits fell” (April 2025, Modaes), and “Latin American department stores gain momentum: 6.3% growth in Q1 2025” (May 2025, Modaes).

El Puerto de Liverpool loses momentum in fashion: can e-commerce and credit save the day?

What: Liberty transforms its former chocolate shop into The Beauty Studio, offering niche beauty brands and holistic treatments to meet evolving customer demands.

Why it is important: This move reflects the growing trend of experiential and wellness-driven retail, aligning with consumer demand for creativity and individuality.

Liberty has unveiled The Beauty Studio, a concept space situated in its former chocolate shop, now dedicated to innovative beauty and wellness experiences. The studio features three exclusive brands—Violette_FR, Grown Alchemist, and Vyrao—each bringing a unique approach to beauty that emphasizes well-being, creativity, and self-expression. Violette_FR, led by founder Violette Serrat, offers a UK-exclusive concept space and a collaborative capsule collection with Liberty, while Grown Alchemist introduces biotech-driven skincare treatments and holistic consultations, marking its first in-store service offering at Liberty. Vyrao, focused on energetic healing, incorporates Herkimer diamond crystals into its fragrances, reinforcing the studio’s commitment to sensory and emotional well-being. The Beauty Studio’s launch responds to significant growth in the beauty category, with double-digit sales increases and rising demand for niche, sensorial, and wellness-driven brands. By curating exclusive partnerships and immersive services, Liberty positions itself as both curator and creator in luxury beauty, catering to customers seeking products and experiences that align with their values and individuality.

IADS Notes: Liberty’s approach mirrors industry trends observed at La Samaritaine, where curated beauty offerings drive engagement (Fashion Network, April 2025), and at Nordstrom, which integrated wellness services to elevate the retail experience (Forbes, March 2025). The transformation of Liberty’s physical space aligns with the experiential retail surge noted in Santa Monica (Los Angeles Times, March 2025) and broader strategies highlighted in The Robin Report (January 2025). The focus on creativity and values-driven purchasing reflects the preferences of Gen Z and younger consumers, as highlighted in Vogue Business (November 2024) and BCG (May 2025).

Liberty opens The Beauty Studio, focused on body, mind and creativity

What: Nordstrom’s holiday campaign features a revived print catalog, affordable gift assortments, and over 1,500 in-store events to attract shoppers.

Why it is important: This move reflects the growing trend of integrating digital and physical retail channels, as seen in recent industry reports.

Nordstrom is revitalizing its holiday strategy by reintroducing a 100-page print catalog filled with over 800 gift ideas, while simultaneously enhancing its digital and in-store experiences. The retailer is prioritizing value, with 90% of its gift assortment priced under $100 and 60% under $50, aiming to appeal to budget-conscious consumers during uncertain economic times. Shoppers can explore more than 1,000 gifting options at in-store gift shops, and online customers benefit from a new AI-powered chat feature for personalized recommendations. For the first time, every Nordstrom location will host Santa Claus, offering free photos to cardholders, and the company will hold over 1,500 festive events, including exclusive experiences for loyalty members. The New York City flagship introduces The Gift Shop at The Corner, a 5,000-square-foot immersive space designed for year-round gifting. Nordstrom’s multifaceted approach demonstrates a commitment to blending digital innovation, value-driven assortments, and experiential retail to create memorable shopping moments and maintain competitiveness in a challenging retail landscape.

IADS Notes: Nordstrom’s campaign exemplifies the industry’s shift toward integrating digital and physical retail, as highlighted in its own holiday campaign press release (October 2025). Macy’s has similarly focused on curated gift assortments and immersive experiences in its ‘100 Days to Christmas’ campaign (Retail Dive, September 2025), while JCPenney’s holiday strategy emphasizes value and exclusive brands (WWD, October 2025). Broader market analyses, such as PwC’s US Holiday Outlook 2025 (September 2025), underscore the importance of value, technology, and experiential retail, and The Robin Report (January 2025) details the rapid expansion of unconventional experiential retail strategies in response to evolving consumer expectations and economic pressures.

Nordstrom relaunches holiday catalog

What: AI-powered search and analytics tools are transforming Black Friday and holiday retail strategies, driving record sales and reshaping consumer behaviour.

Why it is important: AI-driven strategies are accelerating digital transformation in retail, enabling brands to meet evolving consumer expectations and outperform competitors.

Retailers are rapidly integrating AI-powered search and analytics tools to optimise their Black Friday and holiday sales strategies, resulting in record-breaking sales figures and significant shifts in consumer behaviour. The widespread use of AI for deal-hunting and personalised promotions has compelled retailers to adapt their tactics, with nearly two in five global consumers leveraging these technologies during major shopping events. AI-driven pricing and merchandising are enabling retailers to respond dynamically to market pressures, such as inflation and changing customer preferences, while also enhancing operational efficiency. Early adopters of generative AI are reporting substantial revenue increases and improved customer engagement, demonstrating the competitive advantage of advanced technology in the retail sector. As AI continues to influence both consumer decision-making and retailer operations, the industry is witnessing a fundamental transformation that prioritises digital innovation, data-driven insights, and seamless customer experiences. This evolution is setting new standards for success in an increasingly competitive retail landscape.

IADS Notes: Throughout November and December 2024, industry reports consistently documented the transformative impact of AI on Black Friday and holiday retail performance. BCG and WWD highlighted the surge in AI adoption for both consumer-facing and operational strategies, while Techcrunch and The Robin Report quantified the resulting sales growth and behavioral shifts. By September 2025, BCG confirmed that early AI adopters were realising significant revenue gains, reinforcing the critical importance of digital transformation and advanced analytics for sustained retail competitiveness.

AI search to have big Black Friday impact as retailers rush to capture promotional spend

What: PayPal and OpenAI are enabling direct shopping and payments within ChatGPT using the Agentic Commerce Protocol and Instant Checkout.

Why it is important: This integration accelerates the shift toward AI-mediated retail, confirming the growing role of conversational platforms in commerce.

PayPal’s partnership with OpenAI marks a significant step in the evolution of retail by allowing users to shop and pay directly within ChatGPT. Leveraging the Agentic Commerce Protocol and OpenAI’s Instant Checkout, this integration enables seamless product discovery, order confirmation, and payment without leaving the conversational interface. PayPal will provide buyer and seller protection, dispute resolution, and support for card payments, while merchants benefit from automatic catalog integration and backend payment management. Starting in 2026, products from PayPal merchants in categories such as apparel, beauty, and electronics will become discoverable in ChatGPT, eliminating the need for additional integrations. This move not only streamlines the consumer journey but also lowers operational barriers for retailers, positioning AI-driven platforms as central to future commerce. The initiative reflects the broader industry trend of embedding payments and commerce within AI applications, as payment providers and tech companies compete to define the next era of retail. 

IADS Notes: The partnership between PayPal and OpenAI to enable direct shopping and payments within ChatGPT exemplifies the rapid transformation underway in retail, as AI-driven conversational platforms become central to the shopping journey. Industry analysis from September and October 2025 highlights how the integration of instant checkout features in ChatGPT is shifting power from traditional retailers to AI agents, with algorithms now mediating product discovery, purchase, and brand visibility (Forbes, September 2025; Modern Retail, August 2025; Inside Retail, September 2025). PayPal’s adoption of the Agentic Commerce Protocol and the launch of its agentic commerce suite build on this momentum, offering merchants seamless catalog integration and payment solutions without the need for complex backend work (Forbes, September 2025; Blog du Moderateur, May 2025). This approach addresses longstanding conversion gaps in AI-driven retail and aligns with broader trends, as seen in PayPal’s earlier partnership with Perplexity and similar moves by Mastercard and Visa to establish secure, transparent frameworks for AI-enabled transactions (Press Releases, May 2025). The convergence of major payment providers and AI platforms is not only democratizing advanced commerce technologies for merchants of all sizes but also intensifying competition among tech giants, compelling retailers to recalibrate their digital strategies for a machine-mediated environment (WWD, September 2025; BCG, September 2025).

PayPal partners with OpenAI to let users pay for their shopping within ChatGPT

What: Saks Global launches a new Seller Success Track Programme to empower top-performing associates and elevate customer experience at Saks Fifth Avenue and Neiman Marcus.

Why it is important: Saks Global’s approach demonstrates how clear advancement paths and cross-brand integration can drive both employee satisfaction and business performance.

Saks Global has unveiled the Seller Success Track Programme, a comprehensive initiative designed to empower high-performing sales associates at Saks Fifth Avenue and Neiman Marcus. This programme introduces a structured development path, beginning at $1 million in annual sales and progressing through multiple tiers up to $7 million, with each level unlocking new incentives and support, such as customer acquisition resources and dedicated assistants. By recognising and nurturing individual strengths, the programme aims to foster both personal growth and business success, reinforcing Saks Global’s commitment to personalised service. The addition of Global Stylists, who serve clients across all brands and locations, further unifies the customer experience and leverages the full capabilities of the retailer. This approach not only sets a new standard for career progression in luxury retail but also supports the company’s broader vision of delivering artfully curated, individualised shopping experiences. Saks Global’s investment in its associates is positioned as a strategic move to enhance loyalty, drive growth, and maintain its leadership in the evolving luxury market. 

IADS Notes: Saks Global’s Seller Success Track Programme directly responds to the luxury retail sector’s pressing need for talent retention and structured career development, as highlighted in Forbes (Dec 2024) and MAD & Comité Colbert (Jun 2025). The initiative’s focus on personalisation and unified customer experience aligns with industry analyses from BCG (Nov 2024) and is reinforced by Saks Global’s organisational changes reported in WWD (Apr 2025, Sep 2025). These sources demonstrate how clear advancement paths and cross-brand integration are becoming essential for business performance and employee satisfaction.

Saks Global introduces new top seller programme

What: JCPenney is experiencing a resurgence, returning to profitability and increasing customer traffic as it enters the 2025 holiday season.

Why it is important: JCPenney is holding prices flat on key holiday products and leveraging exclusive brands to attract value-driven shoppers amid economic uncertainty. This development demonstrates how department stores can adapt to economic pressures by focusing on value, exclusive offerings, and customer engagement.

JCPenney is entering the 2025 holiday season with renewed momentum, marked by a return to profitability and a steady increase in customer visits over the past fifteen months. The retailer’s strategy centers on holding prices flat for key holiday products, a move designed to address consumer concerns about inflation and economic uncertainty. Exclusive collections, such as the iHeartRadio Jingle Ball x JCPenney line and expanded offerings from brands like Ashley Graham and Rebecca Minkoff, are positioned to attract a broad demographic seeking both value and novelty. The company’s holiday campaign emphasises compelling promotions, daily deals, and a diverse assortment of apparel, home goods, beauty, and toys, aiming to maintain strong engagement throughout the season. Operational improvements and the recent formation of Catalyst Brands have enabled JCPenney to leverage efficiencies and enhance its market position, even as overall sales remain slightly down year-over-year. By prioritising value and customer experience, JCPenney is demonstrating resilience and adaptability in a challenging retail environment.

IADS Notes: JCPenney’s resurgence and profitability in Q2 2025, achieved through cost controls and operational synergies under Catalyst Brands, align with broader industry trends of disciplined management and strategic partnerships (Retail Dive, October 2025; WWD, December 2024). The company’s decision to hold prices flat on key products amid economic pressures reflects a keen understanding of consumer sentiment (Forbes, September 2025; PwC, September 2025), while the merger with SPARC Group in January 2025 has provided the scale and resources necessary for sustainable growth (The Robin Report, January 2025; WWD, January 2025). These strategies position JCPenney to capitalise on shifting consumer behaviors and reinforce its relevance in the evolving retail landscape.

JCPenney sees momentum entering holiday season

What: Fenwick’s renewed emphasis on sales and margin has led to a significant reduction in losses and increased momentum.

Why it is important: Fenwick’s progress reflects a wider trend of department stores prioritising operational efficiency and profitability to remain competitive.

Fenwick has demonstrated notable progress by significantly reducing its losses through a strategic focus on sales growth and margin improvement. This renewed emphasis has generated momentum in its turnaround efforts, positioning the company more favorably within the competitive department store sector. The shift comes after a period of financial difficulty, during which Fenwick engaged restructuring advisers to address a substantial pre-tax loss. The company’s actions align with broader industry trends, as other department stores have also prioritised operational efficiency, digital innovation, and customer engagement to drive profitability and adapt to changing market dynamics. These strategies, including merchandise optimisation and experiential retail investments, have proven effective for peers such as Selfridges and BHV, who have also reported improved financial outcomes. Fenwick’s experience underscores the importance of decisive leadership and adaptability in ensuring long-term sustainability and competitiveness in the evolving retail landscape.

IADS Notes: Fenwick’s turnaround, highlighted by Retail Week in October 2025, follows its engagement of restructuring advisers after reporting a £28.4 million pre-tax loss, as detailed by Drapers in March 2025. Selfridges’ profit growth and reduced losses, reported by Fashion Network in October 2025, and BHV’s return to profitability in January 2025, further illustrate the effectiveness of operational efficiency and modernisation strategies. The Retail Bulletin in April 2025 emphasised the sector’s investment in experiential retail and modernisation, reinforcing the critical role of leadership in driving these changes.

Fenwick slashes losses as focus on sales and margin builds momentum