What: Saks is teaming up with TerraCycle to launch its Saks Beauty Recycling programme for beauty containers.

Why it is important: Across Saks.com, Saks Fifth Avenue stores and the US, the new recycling initiative will enable customers to recycle empty haircare, skincare and cosmetic packaging from all brands by dropping them off or sending them by using prepaid shipping labels.

The packaging waste will be collected and sorted for processing to become new raw materials to be transformed into furniture, gardening equipment and other products.

Saks launches beauty recycling

What: The former CEO of Federated had organised the sale of the company to Campeau in 1988.

Why it is important: He has been one of the most instrumental person in the concentration of the US retail market during the 20th century.

Howard Goldfeder, who rose the ranks from the training executive program at Bloomingdale's to chairman and CEO of the former Federated Department Stores Inc, passed away at 96. He was instrumental in organizing the sales of Federated to the Canadian company Campeau Corporation in 1988, which won over Macy’s at the time for the bid.

During his 7-year-long tenure at Federated, the company grew from $7.6bn to $11bn in annual sales, and even considered Walmart for acquisition at the time.

Howard Goldfeder, US department stores veteran, passes away 

What: Kohl’s is in search of a new CEO to execute its plans of staying the course of its strategy of driving sales in a promotional environment and uncertain landscape.

Why it is important: Kohl’s heads into the uncertain holiday season with declining profit, while searching for a new CEO following reports of Gass’ departure to Levi Strauss & Co.

The retailer’s customer has been hit hard by inflation leading to a 60% drop in net income from USD 243 million in 2021 to USD 97 million this year. Analysts had been bracing themselves for even steeper declines and had predicted 78 cents per share, 4 cents worse than the result.

Revenue for the three months ended Oct. 29 decreased by 7% to USD 4.3 billion from USD 4.6 billion.

Kohl’s reports 60% profit decline, looks for new CEO - Source 1

Kohl’s reports 60% profit decline, looks for new CEO - Source 2

What: The social messaging platform WhatsApp is launching a feature that will allow users in the UK to find, message and buy from businesses through the app.

Why it is important: Instead of having to look online and retrieve phone numbers from websites, users can now search and connect directly with businesses in the UK, providing a convenient way to quickly get assistance and make purchases.

Additionally, WhatsApp noted that it was also looking to potentially expand its payment feature, which it has recently launched in India to allow users to make a payment from a chat. The feature is first available for users in the UK, Brazil, Colombia, Indonesia and Mexico, and will allow companies using its WhatsApp Business Platform to apply the function.

WhatsApp launches feature for users to contact UK businesses

What: The largest US mall owner, Simon Property Group, has a strong outlook on brick-and-mortar retail.

Why it is important: The CEO of Simon Property Group believes that retailers need to invest more heavily in brick-and-mortar stores considering recent e-commerce sales declining.

Despite economic concerns, Simon Property Group reported resiliency with a 94.5% occupancy rate in Q3 as well as there has been very little slowdown for new store openings and lease renewals. The group also cites the numerous announcements by brands that will expand their store fleets along with many digitally native brands moving into physical stores or through wholesale partnerships.

Simon Property Group doubles down on malls

What: Macy’s, Inc. has announced its plans for S.P.U.R. Pathways (Shared Purpose, Unlimited Reach), a capital funding program to support underrepresented businesses.

Why it is important: Over the next five years, Macy’s projects to provide approximately 100 million dollars in capital for diverse-owned and underrepresented growth-stage businesses.

A third channel through a Momentus Capital loan program will provide an additional 100 million dollars. Businesses that participate in the S.P.U.R. program will have access to various tools, training and opportunities along with an advisory network to help with strategy, credit improvement, business plans, financial reporting, daily operating challenges, business strategy, opportunity evaluation and other personalized services.

Macy’s, Inc. partners with Momentus Capital to launch capital funding program

What: Even though the Shinjuku flagship aims for the stars, the lack of Chinese tourists is still heavily felt in Japanese department stores.

Why it is important: Isetan-Mitsukoshi is facing a situation where regional stores are struggling and the Tokyo flagships are doing extremely well. They might end up closing down some locations, just like what they did in China earlier this year, or in Thailand, in order to maximise their profitability.

In Japan, in spite of the reopening of the borders and the subsequent rise of duty-free sales, the absence of tourists from Mainland China is still felt. Chinese tourists represented in 2019 10m people,  i.e. a third of the total number of tourists entering the country, but they usually spent a disproportionate amount of money compared to the other nationalities.

It is evaluated that the Japanese department store market is currently trading -10% on the first 9 months of the year compared to 2019, however, in the case of Isetan-Mitsukoshi, the situation is a bit better as they are currently trading at +23.8%, with the Tokyo Shinjuku flagship even projecting to revert to the 2018 record year sales level (other regional stores are reported to be in a different situation as they currently trade at -18% compared to pre-Covid).

Analysts do not expect Chinese tourists to return before at least the second half of 2023, which is even seen as a very optimistic date.

Isetan-Mitsukoshi improves sales but feels the pinch of no Chinese tourists 

What: China continues to ease COVID-19-related travel restrictions; however, Barclays expects that the remaining restrictions will continue to hurt traffic and sales for luxury brands in the near term.

Why it is important: International travellers’ quarantine time has been reduced by two days and inbound flight bans have been cancelled, leading to travel searches for international flights to triple since the announcement. The release streamlines the process for business travellers and sporting-event participants.

Quarantine durations have also been cut for locally infected people from seven days to five. Despite the needed relaxing of travel restrictions for retail, predictions for fourth-quarter reports remain realistic, expecting rolling lockdowns amid increased cases in recent weeks.

Barclays expects the recovery to begin fully in 2023.

China lifts flight bans

What: The eBay ‘Luxury Exchange’ in New York’s Diamon District sets out to be a location for shoppers to have their jewellery, watches and handbags appraised, with the possibility to exchange them for items of items from eBay’s top luxury sellers.

Why it is important: Visitors to eBay’s ‘Luxury Exchange’ can appraise items, exchange items for products from eBay’s top luxury sellers, or use the on-site photo studio to list their items on eBay.

The ‘Luxury Exchange’ comes on the heels of the expansion of eBay's 'Authenticity Guarantee' from jewellery to sneakers, watches, handbags, and trading cards. The store reflects eBay’s daily practices of authentication, appraisal, and second-hand/resale commerce.

The location will be open during Jewellery Week in New York, on 16 and 17 November.

eBay opens ‘Luxury Exchange’ store in New York

What: Ralph Lauren and Burberry continue to dive deeper into gaming through phygital activations through Fortnite and Minecraft.

Why it is important: Polo Ralph Lauren has designed in-game clothing for Fortnite which it will release as physical products in-store as well. Burberry is working in reverse as they transform garments into digital skins that are modelled on their physical capsule collection.

In Burberry’s case, a new virtual world will be accessible via the Minecraft marketplace. Ralph Lauren will host a virtual Fortnite tournament and a Twitch Livestream.

Ralph Lauren has also reimagined their logo by placing the brand’s polo player on top of the Fortnite llama logo.

Fashion brands continue to push phygital activations - Burberry

Fashion brands continue to push phygital activations - Ralph Lauren

What: Frasers has purchased over three million shares of common stock, representing 4.3% of Hugo Boss’ entire share capital, along with 21.1 million shares via the sale of put options, representing 30.3% of share capital.

Why it is important: Frasers continues to aggressively purchase stock in its acquisition strategy, with Hugo Boss representing the potential to widen the group’s reach within the premium market.

In addition to raising its Hugo Boss stake to approximately one billion euros worth of shares, Frasers’ stake in Mysale has also grown to over 94% of shares.

In 2022 alone, Frasers has acquired Studio Retail, Missguided, Sneakerbou and I Saw It first. Potential acquisitions may be seen following its recent purchase of stakes in N Brown, Gieves & Hawkes and Asos.

Frasers continues to raise stake in Hugo Boss

What: Chilean retailer Falabella posted its third-quarter report showing a net loss of 24.87 billion pesos (25.7million dollars) compared to its 183-billion-peso profit in 2021.

Why it is important: Hit by a decrease in margins and an increase in expenses, Falabella reported a net loss of 25.7 billion dollars despite its net revenue growing 2.4% (2.97 trillion pesos).

Falabella posts net loss of USD 26 million in Q3

What: To attract Chinese millennials, Alibaba has used the “single day” occasion to celebrate five years of the Luxury Pavilion by expanding its metaverse and liveshopping initiatives.

Why it is important: With 67% of their customers being Chinese millennials, Alibaba’s Tmall Luxury Pavilion has addressed the best ways to engage with this new generation by utilizing their virtual influencer Timo who will highlight products of various partner brands, along with 3D digital collectables.

Customers have access to the Pavilion’s Meta Pass which gives them priority on certain product releases and events. The Luxury Pavilion also incorporates various levels of liveshopping with some events open to all customers and other invite-only events targeted to select members based on platform data.

Alibaba’s Tmall Luxury Pavilion has benefited from the strong repatriation of Chinese luxury consumption as it saw a 153% acceleration in the number of active customers between 2019 and 2021.

Alibaba’s Luxury Pavilion mixes metaverse and liveshopping

What: JCPenney owner, Simon Property Group, has been dragged down in the third quarter following costs linked to the beauty launch for JCPenney, declining y-o-y sales and the group’s investment in Reebok.

Why it is important: The Simon Property Group owner remains confident in the mall business as customers return to stores and occupancy rates increase yet analysts are uncertain about the group’s recent investments dragging down the overall Q3 report.

While the CEO has reported that the 2020 purchase of JCPenney is providing a 60% ROI, it would remain valuable even if that number falls leading some to ask questions. Simon Property Group claims that e-commerce has been flatlining, yet the US Department of Commerce has reported that e-commerce’s percentage of total sales is equal to 2021 at 14% which is still higher than pre-pandemic numbers.

The group reports that its “better brands” such as Brooks Brothers, Lucky Jeans and Nautica are performing well, although specific results are not released and thus cannot be fully substantiated.

JCPenney posts poor Q3

What: On the day of Christmas décor illuminations, inter-union employees of Galeries Lafayette protest for a reevaluation of their wages.

Why it is important: Following the department store’s achievement of exceeding 1 billion in sales, 500 Galeries Lafayette union workers gathered in the Boulevard Hausmann location to demand a reevaluation of wages with the intention continue the movement on Black Friday should the department store chain refuse their negotiations.

The store on Boulevard Haussmann is the spearhead of a network of 57 points of sale in France, of which 19 units are directly operated and 38 addresses run as franchises.

Inter-union workers strike in Paris department stores

What: Marks & Spencer has acquired the intellectual property rights of the fashion personalisation website Thread.

Why it is important: Marks & Spencer’s co-chief executive expects that this addition to the retailer’s current personalisation offer will help boost sales by 100 million pounds a year.

Thread collapsed into administration, leading to a pre-packed deal providing Marks & Spenser with source codes and algorithms that the retailer will integrate into their website to improve clothing recommendations for size, style and budget.

As well, M&S will hire 30 of Thread’s staff, including founders Kieran O’Neill and Ben Phillips.

Marks & Spencer acquires Thread’s technology for personalisation

What: Harrods is investing heavily in destination dining through the property, having opened a handful of notable dining and drinking spots in the past year and a half.

Why it is important: Many retailers are leaning into restaurants to attract customer traffic and save high-end shopping venues, but Harrods is taking it to another level with its highest-profile dining spot Studio Frantzen, slated to open on Nov. 28 on the store’s top two floors.

The restaurant is the first UK outpost for Bjorn Frantzen, one of the few chefs in the world with two restaurants with three Michelin stars: his eponymous flagship in Stockholm and Zén in Singapore.

In 2024, Harrods will become home to Dave Pynt, another chef hailing from a Michelin-starred restaurant and owner of Singapore’s famed barbecue spot Brunt Ends.

Following Harrod’s other successful F&B initiatives, such as the inaugural Jimmy Choo Café and Europe’s first Tiffany Blue Box Café, which scored 1,100 bookings in one day, success is almost guaranteed for Studio Frantzen. In a little over 24 hours after opening reservations, Studio Frantzen logged some 1,500 bookings from all over the world, yet the restaurant maintains that walk-ins will be accepted.

Harrods restaurant sales are up 44% for the first three quarters of this year, compared to the same period in 2019.

Harrods bets big on fine dining destinations

What: According to Bain & Company and Altagamma’s most recent study, the luxury goods segment will continue to expand until 2030 despite global political and economic uncertainty.

Why it is important: The study concluded that the global luxury goods industry is projected to achieve a market value of 1.4 trillion euros in 2022, up 21% compared to 2021.

Revenues are projected to climb to 353 billion euros, a 22% increase between 2021 and 2022. However, personal luxury goods are expected to see slowing market growth of around 3-8% in 2023. Analysts remain positive that luxury will be resilient to recession unlike during the 2009 financial crisis with growth of 60% by 2030 and a potential increase of 550 billion to 570 billion euros compared to 2022.

China will be a key factor for the fourth quarter performance of 2022 and the growth of the luxury market. As well, brands and retailers focused on this segment will need to prioritise ESG, creativity, agility, technology and data.

Global luxury goods market to reach 1.4 trillion in 2022

What: Fiona Westenberg is becoming head of the Oberpollinger in Munich as General Manager for the KaDeWe Group department store.

Why it is important: Fiona Westenberg, former Head of Sales for all fashion areas at KaDeWe since 2016, will replace Alexander Repp as General manager, while he moves to Oberpollinger’s Swiss sister company Globus for his new role as Retail Director.

Oberpollinger welcomes new boss

What: In the high-end shopping centre ION Orchard, Gucci Beauty has unveiled its first store.

Why it is important: The beauty boutique opening follows Kering’s Q3 results showing single-digit growth for Gucci, leading to continued efforts to revitalise the brand, which generates more than half of Kering’s total revenue despite now being below the performance of the group’s other brands.

Gucci is focusing on acceleration through its relaunch which centres around timeless products and gaining greater visibility in the Asian markets. Coty has announced that a second Gucci Beauty store will open in 2023.

Gucci Beauty opens first boutique in Singapore

What: The corporate offices for Louis Vuitton will add a chocolate shop and gift store while highlighting the brand collaborations with artists in the new exhibition space.

Why it is important: Louis Vuitton is adding a commercial space to their corporate office building that includes the arts and hospitality.

Dubbed the LV Dream space, the headquarters of Louis Vuitton will include a café, gift shop, a chocolate shop run by Maxime Fédéric and an exhibition space to highlight artistic collaborations of the brand. The exhibition space will be open seven days a week offering interactive experiences and a deep dive into the brand’s various partnerships.

Visits are free but must be pre-booked through the Louis Vuitton website while access to the café, chocolate confectionery and gift shop will be accessible without a reservation.

Louis Vuitton headquarters adds café and exhibition space

What: Central Group and Signa have opened ‘Lamarr’, a luxury department store inside a landmark building in Vienna inspired by Austrian icon Hedy Lamarr.

Why it is important: The Lamar department store, set to open in 2024, will be the fifth department store of the KaDeWe group, joining KaDeWe in Berlin, Oberpolliger in Munich, Alsterhaus in Hamburg, and Carsch-Haus in Dusseldorf.

The building has been designed by architecture firm OMA and is in one of the most bustling shopping destinations in Vienna on Mariahilfer Straße boulevard. The department store will total 20,000 square metres of retail space across eight floors with memorable quotations from Hedy Lamarr decorating the walls and elevators. Along with international and local brands, service components will include medical services, a spa, events and art exhibitions.

In addition to the Lamarr, the Thompson Vienna hotel and the 1,000 square metre rooftop park are currently under construction, which will allow tourists to enjoy terrace seating in the gallery garden that connects the hotel to the store.

Central Group and Signa unveil luxury department store in Vienna

What: Germany’s biggest department store, Galeria Karstadt Kaufhof, is filing for bankruptcy protection again to save the mid-market chain.

Why it is important: For the second time in two years, René Benko, owner of Galeria Karstadt Kaufhof and co-owner of Selfridges, is filing for bankruptcy protection having already taken two bailouts from the German government worth 680 million euros.

Berlin politicians are reluctant to provide a third bailout without participation from Benko and his Signa Group.

The mid-market chain Galeria Karstadt Kaufhof first filed for creditor protection in April 2020 when the pandemic forced store closures. This time around, close to a third of jobs will be slashed as part of a planned restructuring due to overly complicated bailout terms.

Benko is facing more than scrutiny caused by the Galeria restructuring. The Signa headquarters was raided by the Austrian police in October as part of an anti-corruption investigation surrounding Benko’s political connections in Vienna and the overall financial operations of his business empire. Past criticism has insinuated that Benko’s acquisition of Galeria has been fueled by the underlying high-value real estate as it contrasts the rest of his portfolio of exclusive, luxury developments./nbsp]

For the moment, Benko has not been charged with any wrongdoing.

Galeria Karstadt Kaufhof files for bankruptcy protection again

What: Peek & Cloppenburg is using the Christmas season as an opportunity to launch its new brand identity as part of the transformation initiative to become Europe’s leading multi-brand omnichannel fashion retailer by 2026.

Why it is important: Peek & Cloppenburg will begin focusing on the ampersand (&) in marketing to highlight its goals of being an internationally hybrid brand that creates congruent worlds online and offline.

The Christmas campaign entitled “Merry Moments” tells the story of an unforgettable Christmas through an episodic approach. Characters will have outfit changes through jump cuts triggered by different audio which finally leads to “a suitable look for everyone at every moment.”

The episodes have been running on major broadcast stations across Germany and Austria with plans for print, street, online and social media placements to come.

Peek & Cloppenburg unveils new brand identity