What: a part of the store will be converted into office space

Why is it important: the retail rethinks its store as consumption shifts online

First, John Lewis unveiled plans to convert part of its Oxford Street, London flagship into office space. And now Marks & Spencer is doing the same. The retail giant wants to convert the upper floors of its Oxford Street site while retaining retail space on the lower levels.

The moves on the part of both prominent retail names come as physical retail faces its biggest challenge in decades, not only because of the pandemic-linked lockdown, but because of the wider shift to online shopping.

M&S aims to consult with local stakeholders on its proposals, with its plan being to develop a smaller but much more modern store that will still offer its full range of products.

Marks & Spencer plans to downsize Oxford Street flagship

What: The news follows the recent deal in which Naver and Shinsegae bought around USD 221 worth of the other firm’s shares.

Why is it important: While Naver is betting on its partner’s luxury credentials to strengthen its advertising, e-commerce and fintech services, Shinsegae could become the leading online vendor for premium goods.

The link up could help streamline Shinsegae’s logistics operations and boost gross merchandise volume. The two players are also reportedly in talks to fuse their membership systems.

The news comes hot on the heels of local e-commerce giant Coupang’s USD 3.5 billion US IPO as well as reports that Shinsegae is among the potential buyers of eBay’s Korean business.

Shinsegae is the country’s largest importer of luxury brands, which could set it up to become the South Korean market’s leading online vendor for premium goods as shopping continues to shift online post-pandemic. Despite Coupang’s size, it has yet to stock top luxury brands; meanwhile, rival retail group Lotte is struggling to keep up with digitally savvy rivals.

Shinsegae, Naver to Launch Luxury E-Commerce Platform 

What: The arrival of springtime and progress made in nationwide vaccination is giving a much-needed boost to the country’s top brick-and-mortar retailers.

Why it is important: During the weekend of 5 March, Hyundai Department Store witnessed a 109.8% surge in sales compared to 2020 and sales were up by 26.5% compared to 2019.

Sales at Lotte Department Store were up 94% year-on-year and 9% compared to 2019.

Shinsegae Department Store saw sales increase by 94.7% and 14% compared to 2020 and 2019 respectively.

Luxury goods performed especially well, with Lotte and Shinsegae reporting 143% and 109.9% sales boosts year-on-year and Hyundai reporting a 138.6% uptick.

Seoul’s newest and biggest department store, the Hyundai Seoul is estimated to have recorded sales of KRW 37.2 billion (USD 32.6 million) in its first week of business. Some 1.5 million people are estimated to have visited it during the first week.

South korea's department stores strong sign of recovery

New Hyundai Seoul record sales

What: bookshops fight back

Why it is important: one of the reasons for department stores abandoning book selling was the competition. The competitive landscape is now changing.

After the consolidation of major bookshop chains, the growth of e-books seems also to have reached a plateau. Independent bookshops which favour a local approach are thriving. Perhaps this is a moment for department stores to reconsider entering this market, albeit in a different way.

How bookshops survived the Amazon onslaught 

What: Selfridges group of the UK which includes the eponymous Selfridges store on Oxford Street, de Bijenkorf department store in Amsterdam, Brown Thomas and Arnotts in Dublin, as well as the Holt Renfrew upmarket fashion chain in Canada has officially announced results for the year to 2 February 2020, pre-covid. Although revenue increased by 7% to £1.97 bn, operating profits were down 10% to £88 m, and pre-tax profits plunged to £34 m from £98 m the previous year.

Why it is important: Managing Director Anne Pitcher stated that the group has suffered during this latest year. With Selfridges stores being located in city centres, she expects footfall to remain muted for some time, even when stores reopen. City centres — and especially London’s West End — have been devastated in the last year with the international and domestic tourists, plus office workers, that usually make up the majority of shoppers being thin on the ground.

Selfridges press release

What: the retailer wants to expand its new concept store combining Dollar Tree and Family Dollar

Why is it important: the format targets rural communities of 3 000 to 4 000 people

Dollar Tree plans a major expansion for a new concept store, introduced a little over a year ago, that combines its namesake and Family Dollar banners into a single storefront. The format targets rural communities of 3 000 to 4 000 people, where the retailer would traditionally not open a Dollar Tree store alone.

The retailer now operates a total of 50 “combined” stores and comparable sales are up 20% on average at the new format stores.

Family Dollar's sales often have lagged Dollar Tree's, and the company has closed hundreds of Family Dollar stores. That trajectory, however, reversed during the pandemic, when Family Dollar's offering of food and household essentials helped feed sales as consumers stocked up their houses and consolidated trips.

The format also combines the differing assortments of the two banners, bringing food and household essentials from Family Dollar together with crafts, party supplies, decor and other categories from Dollar Tree.

Dollar Tree already operates nearly 15 700 stores across its two banners. In the previous fiscal year, which wrapped up at the end of January, both the Family Dollar and Dollar Tree banner posted top-line sales growth amid a retail environment defined in nearly every aspect by the COVID-19 pandemic. That growth continued into the fourth quarter for both banners, with Family Dollar same-store sales up 8.1% and Dollar Tree's up 2.4%.

Dollar Tree eyes at least 3 000 locations for rural concept stores

What: after building a partnership between Gucci and The RealReal, Kering invests in the French resale platform

Why is it important: luxury’s attitude to second-hand model is rapidly changing

A year ago, none of the French luxury group Kering’s brands had dared dip a toe into the fast-moving waters of online fashion resale.

Luxury sector is evolving fast towards second-hand business. Since 2018, Burberry and Stella McCartney have entered into partnerships with The RealReal. That same year, Richemont bought a watch resale website, Watchfinder. Neiman Marcus took a minority stake in Fashionphile in 2019, a shopping site for second-hand luxury handbags and accessories. Last year, Kering brands Gucci and Alexander McQueen have both announced partnerships with respectively The RealReal and Vestiaire Collective. Also last year, LVMH said that the group luxury’s biggest company is looking at resale opportunities.

Now, Kering has acquired a 5 per cent stake in Paris-based Vestiaire Collective, in the clearest sign yet that luxury’s attitude to the second-hand model could be thawing.

The group stepped up as a leading investor in the platform’s latest funding round. The EUR 178 million (USD 215 million) financing pushed Vestiaire Collective’s valuation above USD 1 billion for the first time. Existing shareholders including Condé Nast and French private equity firm Eurazeo reinvested alongside Kering.

The shift reflects broader market trends as luxury players seek to burnish their sustainability credentials and secure a seat at the table in the luxury resale sector. Second-hand fashion is already worth USD 40 billion and is expected to grow as fast as 15 to 20% per year through 2025. Resale also offers an entry point to build brand loyalty at more accessible prices, and with an eco-conscious message that resonates powerfully with the next generation of consumers.

Whether the partnerships will stick, or grow to a meaningful scale, remains to be seen. But brands are likely hoping they could win back some control over how they are presented on the sites, as well as exploring a new channel to monetise their own unsold inventories and returned products.

Luxury brands partnering with resale sites have also offered sellers store credit in return for their pre-loved handbags and high heels. That appeals to environmentally-conscious shoppers while also tempting them back to the store.

Why Kering Invested in Vestiaire Collective 

Gucci owner Kering invests in resale platform Vestiaire Collective

What: after Isetan and Takashimaya, Hankyu is venturing outside Japan

Why is it important: Hankyu chose Ningbo city as competition is too fierce in top tier cities

The owner and operator of Hankyu Hanshin Department Stores will partner with Shanshan Group to unveil a luxury shopping destination in Ningbo, China next month, local media outlet Jiemian reports.

The store will be H2O Retailing’s first venture outside Japan and span 230 000 square meters. It was slated to open in 2018 but was delayed thrice. The location will house luxury fashion boutiques alongside premium beauty stores and Michelin star restaurants.

Unlike Japanese rivals Isetan and Takashimaya, H2O Retailing has chosen not to break into the Chinese market through Shanghai — a decision reportedly due to fierce competition in top tier cities.

Where both Isetan and Takashimaya have struggled in a landscape dominated by homegrown retail groups, it remains unclear whether H2O Retailing’s local partner and choice of location will give it an edge. Isetan, which entered China in 1993, operates three department stores in the country but closed three branches before 2014. Despite going back on its announcement to withdraw from the market in 2019, Takashimaya, which opened in Shanghai in 2012, has seen sales slide.

Japan’s H2O Retailing to Open Department Store in China 

What: Since 2011, the sportswear giant has grown DTC sales from 16% to 35%, all while continuing to take share.

Why is it important: DTC business share will continue thriving in the coming years.

In 2011, DTC sales made up 16% of Nike brand revenues, or USD 2.9 billion of the total USD 18.1 billion brought in that year. By the end of Nike's fiscal 2020, which came 31 May, that number had grown to 35%, or USD 12.4 billion. Of course, Nike's revenues have also grown over that 10-year period, to USD 35.6 billion. By comparison, Adidas made USD 23.8 billion last year, and Under Armour made USD 4.5 billion.

It's been about having the right product, definitely. But it's also been about knowing how to make tough decisions. In the '90s, that meant opening outlet stores when trends shifted to khakis and away from sneakers, according to Matt Powell, senior industry adviser for sports with the NPD Group, and in the past few years, it's meant doubling and tripling down on shifting spend to its DTC channels.

Nike has a strong brand, so it's able to command a sizable business through its own channels. Another advantage to the method is that Nike has more control over how its brand is presented through DTC channels, something which analysts speculated was the reason it stepped away from Amazon.

A report from McKinsey and the World Federation Sporting Goods Industry estimated that the shift to DTC has been accelerated by two years because of the pandemic, and researchers recommend that in the medium- to long-term, brands that want to thrive will need to aim for a 20% DTC business, or higher. It's at that point that brands begin to see a virtuous cycle from DTC sales and higher margins, rather than the "vicious cycle" that comes with less scale of the channel.

How Nike is using DTC and data to expand its empire

Related item:

• Adidas aims to cut out retailers in a renewed push for growth

What: USD 1.1 billion in senior secured notes were sold to repay other borrowings

Why is it important: The owners of the Dallas-based luxury retailer have reduced their exposure way down as lenders, while Neiman’s slightly increases its debt level from what it had been since emerging from bankruptcy

The deal enables NMG’s three owners — also the retailer’s largest creditors — to greatly reduce their risk, but doesn’t de-leverage the luxury retailer. NMG emerged from bankruptcy on 25 September 2020 with its senior lenders — Pacific Investment Management Company LLC (Pimco), Davidson Kempner Capital Management and Sixth Street Partners — swapping debt for equity and becoming the new owners. To get Neiman’s out of Chapter 11, the three owners funded a USD 750 million exit financing package.

The reorganization plan eliminated USD 4.4 billion of the USD 5 billion or so in debt Neiman’s had on its books back then, and about USD 200 million in annual interest payments. Yet Neiman’s still pays significant interest (estimated at USD 114 million annually as of January 2021) on the USD 1.6 billion in debt it now has.

The memorandum states that Neiman’s believes its reorganized operating structure “provides ample liquidity and flexibility to respond quickly to evolving trends.” But there are other concerns related to the absence of international tourists and to some top designer brand partners that have or are considering converting from wholesale to concession arrangements.

On the revenue side, online sales were down 6% for the six months ended 30 January 2021, and down 4.1% for the 12 months through 30 January 2021. Sales at stores were down 33.6% for the six months ended 30 January 2021, and 47.3% for the 12 months through 30 January 2021.

NMG currently has 37 Neiman Marcus stores, two Bergdorf Goodman stores, and five Last Call units. The memo reiterates that the remaining fleet is “particularly well positioned and smart investments are being made to continue optimizing the in-store experience.” In addition, Neiman’s executives have been working hard to gain ground in e-commerce and investing USD 85 million in supply chain innovation.

The memo also indicates:

•    About 78% of NMG’s customers are female, about 64% of the customers have an annual household income over USD 250 000, and about 30% of customers have a household net worth greater than USD 5 million.

•    About 46% of Neiman’s customers are Generation X or Millennials, and they are active on social media.

•    About 30% of total U.S. revenues in the last 12 months were generated by Neiman’s InCircle loyalty program members who achieved reward status. These customers spend about nine times more than other customers.

•    About 40% of net sales are from customers who spend USD 10,000 or more annually.

NMG has refinanced again

What: The brand's U.K. director Gary Bott explains the decision to focus on a concession model, e-commerce and strategic wholesale in Europe, whilst Asia launches new multi-brand concept stores

Why is it important: The brand will rely on department stores for its development in Europe

South Korean label Gentle Monster is known for its cool eyewear designs as much as it’s known for its theatrical retail spaces.

A new multi-brand concept is set to open in Shanghai later this year and introduce new categories and brands beyond the Gentle Monster family. But it’s a different story when you look at the label’s European business, which includes a Selfridges concession and a flagship space on Argyle Street here. The latter won’t reopen.

“Ultimately, it was a decision based on the decline of footfall and sales. We had to look at it in terms of overheads which were disproportionate to the sales unless landlords were able to offer rent reductions. That’s why we are seeing so many stores close on the high street,” Bott added.

A dedicated e-commerce site for the U.K. and Europe is also in the works, in order to shift operation management to the U.K. and no longer have to ship product from the brand’s Seoul headquarters.

But as lockdowns begin to ease, Bott is expecting the focus to shift back to physical retail sales, which used to make up to 90% of the brand’s total revenues in the U.K. A small 7% came from e-commerce and the remaining 3 per cent from “strategic wholesale.”

Gentle Monster’s Post-Pandemic Retail Rethink 

What: Since January 2021, K11 mall properties in Hong Kong and mainland China have delivered a “strong” performance with cumulative sales surging 81% in the year-to-date, compared with the same period last year.

Why it is important: In the first half of the fiscal year ending on December 31, 2020, Shanghai’s K11 was among the best-performing, with a sales growth rate of 37%, hitting highs unseen since its opening in 2013.

This good news was tempered by bad, as New World’s flagship Hong Kong property, K11 Musea, has been forced to temporarily close this week, after a Covid-19 outbreak was linked to one of its restaurants. It’s expected to re-open on 5 March.

But even in Hong Kong, where retail sales have been on a losing streak for almost two years, dropping by up to 44%, Adrian Cheng, executive vice-chairman and chief executive of New World is “very optimistic that Hong Kong’s economy will recover gradually as more and more Hong Kong residents are vaccinated.”

Sales surge 81% at China’s K11 malls

What: the retailer and the tech giant team up to compete with e-commerce players, such as Coupang

Why is it important: retail and tech are joining forces in South Korea

South Korean retail giant Shinsegae Group and information technology behemoth Naver are combining forces to gain an upper hand in the fast-changing e-commerce field.

Chiefs of the two sides signed a stock swap deal worth KRW 250 billion won (USD 221 million) and a strategic partnership agreement.

Shinsegae said it would be combining its expertise in retail, both online and of physical stores, with Naver’s expertise in online platform operation and artificial intelligence technology to provide the best benefits to customers. The retail giant also said it aims to create a new retail ecosystem where they can work and grow together with individual and small business sellers.

Shinsegae and Naver ink stock swap deal 

What: Tonal partners with Nordstrom to bring its intelligent strength training system to new customers in 40 stores across the US

Why it is important: Tonal’s fitness equipment uses a proprietary digital weight system that generates up to 200 pounds of resistance and replicates every machine in the weight room with a fraction of the equipment, as well as an advanced A.I. software available to offer customised and evolutive training programmes to its users.

Its partnership with Nordstrom will take the form of a 50 square foot concept in Nordstrom Women’s Active department where visitors can experience a full Tonal demo and try a workout first-hand. Tonal hoping to reach new customers, including in 12 states where it had no physical locations yet.

As for Nordstrom: "We know customers are looking for inspired workouts that elevate their wellness ambitions, and we're excited to offer them a dynamic new digital fitness experience through our partnership with Tonal," said Lori Marten, Nordstrom Vice President and Divisional Merchandise Manager. "Our goal is to help customers discover the latest active gear for style, performance and everything in-between, and we look forward to making it easier than ever to discover everything in one place so they can look and feel their best."

Tonal Partners with Nordstrom to Expand its Retail Footprint [...]

What: Macy’s has decided to eliminate the role of COO in the company

Why is it important: the executive changes will make the company more efficient.

The current holder, John Harper, will depart this summer and will not be replaced. The Chief Stores Officer and the Chief Supply Chain Officer will now report directly to chairman and CEO Jeff Genette.

Another senior appointment will be made effective mid-March: Laura Miller will succeed the present incumbent as CIO. She comes from the hospitality world and will also report directly to the chairman and CEO. The other function reporting to Genette is the CFO who oversees the real estate function.

According to the company, these changes in reporting structure will enable Macy’s to be nimbler and more efficient as they move forward and drive top- and bottom-line growth.

The co-founder of Blue Mercury, founded 20 years ago and acquired by Macy’s in 2015 for $ 210 m, is also leaving Macy’s. Macy’s has started the search for a new CEO to oversee the 166 beauty stores, who will report directly to Tony Spring, CEO of Bloomingdale’s.

Macy’s Sets Senior-level Changes; Eliminates COO 

What: The sportswear giant is shifting toward a more DTC-driver business.

Why is it important: The athletics retailer is joined by Adidas and Under Armour in the quest to make more profitable sales through DTC channels.

Nike has notified another seven wholesale accounts that they will be shut down. Among those cut are big names, including DSW, Urban Outfitters and Macy's, along with Big Five, Olympia Sports, Duhnams and Shoe Show. Nike will no longer sell apparel directly to Macy's, but the Finish Line at Macy's business is still supposed to receive products. The news comes after the athletics retailer dropped nine wholesale accounts last August, including Belk and Zappos.

It's the latest move in Nike's strategy to focus more on its own DTC sales and limit wholesale to only certain "strategic partners." The Consumer Direct Acceleration strategy also hinges on investing more in digital and the rollout of up to 200 small-format stores in the model of its digitally enabled Nike Live concept.

Nike drops DSW, Urban Outfitters, Macy's in quest for more DTC sales

Related items:

• How Nike is using DTC to expand its empire
• Adidas aims to cut out retailers in a renewed push for growth

What: from now on the company will rely on local partners

Why is it important: the department store has already cut 100 jobs in Zurich HQ

The company wants to avoid layoffs and try to place its 50 ex-employees with new partners. Globus has also developed social measures including early retirements, compensation, extended periods of notice and job search support.

By February 2020, Globus had been sold by Migros to the joint venture of Austria's Signa and Thailand's Central Group. The new owners announced last April that they would cut about 100 positions at the Zurich headquarters. The department stores currently employ 2 400 people.

Commerce de détail Globus externalise la restauration

What: online company Farfetch grows significantly in 2020 and partners with Alibaba’s Tmall.

Why it is important: Farfetch appears to be getting closer to profitability. Shows up how brands lose out on wholesale.

Farfetch has announced revenue growth in 2020 of 64% to $ 1.7 billion. The year 2020 was described as a landmark year with very uneven quarters. But investments in services such as same-day and 90-minute delivery, fit technology to help with sizing, for example, helped establish the company as an online luxury destination. Overall, the company reported a loss after tax of $ 3.3 billion due to investments in convertible notes in early 2020 from Tencent and US Dragoneer. Further higher costs relating to Brexit will likely impact near-term margins. Meanwhile it is working on strengthening its brand partnerships.

Farfetch is launching on Alibaba’s Tmall (after shutting down on JD.com). This partnership is described by founder Jose Neves as a “slow burn” designed to “test and fail and learn”. Farfetch is not alone on the luxury market, however. Mytheresa said it had a 28.2% rise in active clients last quarter, and Revolve is is investing also.

According to Vogue Business, brands see greater benefits from going on Farfetch than selling wholesale. See graph below:

Farfetch graph

Farfetch reaches profitability after 12 years 

Farfetch Prepares to Turn On With Tmall 

01.03.21 FINAL FARFETCH Launches Storefront on Tmall's Luxury Pavilion

What: Amazon Go is opening its first store in London in Ealing, a western suburb of the city

Why is it important: Morrisons, which serves as the British arm of the Amazon Fresh delivery service, has reportedly teamed up with Amazon for the launch. There are apparenty plans for at least another 30 Amazon Go outlets in Britain.

There are around 27 stores in the US in New York, Seattle, Chicago and San Francisco. Last year (pre covid), the company forecast that revenue from Amazon Go would rise from $28 m in 2018 to over $ 600 m in 2020. Analysts have speculated that each Amazon Go store costs around $ 1 m I  technology.

See the video used to advertise the first Amazon Go store opened in 2018 in Seattle.

Amazon Go to make UK debut this week with London store opening

What: Isetan Mitsukoshi started the service through a dedicated smartphone app.

Why is it important: the company mainly targets younger customers.

Shoppers can move around the virtual reproduction of the operator's flagship Isetan store in Tokyo's Shinjuku district.

Computer-generated sales clerks will appear on the screen, and customers can chat with staff at the actual department store.

Shoppers can select from 400 products including cosmetics.

Isetan store to offer virtual reality shopping

What: Closing 8 stores might not be enough to sustain the profitability levels required to keep on investing

Why it is important: John Lewis plans to keep on massively investing in e-commerce and new retail categories, in an effort to be “where the customers are”, which implies keeping an eye on the retail network as well.

John Lewis, in a similar effort to IADS member SM, is looking at “rightsizing” not its stores as it is the case with SM, but its retail network, and could consider closing additional stores (on top of the 8 units already closed) with a decision to be taken end of March 21.

The perspective on the long range is to have large destination stores, with space dedicated to experience, complemented by smaller format local shops, and a backbone represented by e-commerce, where the retailer plans to keep on heavily investing. This implies that stores where “customers aren’t” will not be kept at all costs, all the more that John Lewis is, in parallel, entering new markets such as social housing and outdoor living.

Given the situation and the level of investments needed to sustain such a transition, bonuses will not be paid to the company’s staff in 2021, for the second year in a row.

John Lewis warns of further store closures 

What: they are all posting double-digit growth

Why is it important: a combination of pent-up demand and celebrating the holiday locally due to rising COVID-19 cases in China drives up the outlet sales

Value Retail Group’s villages in Shanghai and Suzhou, saw strong growth during the recent Chinese New Year holiday, despite the reduction in domestic travel due to rising local COVID-19 cases in February.

Overall, compared to the 2019 pre-pandemic level, CNY sales growth reached 184 and 11%, respectively, for Shanghai Village and Suzhou Village, while footfall increased 70 and 42%, respectively, setting new all-time records.

Some 27 boutiques at Shanghai Village and 30 boutiques at Suzhou Village each achieved their all-time highest single day of sales since opening. Spend-per visit grew by 67% for Shanghai Village and 52% for Suzhou Village.

Separate from the Bicester Village Shopping Collection, luxury outlet Florentia Village, which opened its seventh China outpost ahead of the CNY holiday in Chongqing, told WWD earlier that it anticipated three to five times more visitors during the Chinese New Year period this year.

Shanghai’s local retail conglomerate Bailian Group also revealed that its outlet business saw one of the biggest gains among its portfolios. Thanks to rounds of live streaming, its online outlet portal logged a 76% growth from last year during the CNY holiday.

You’a Outlets in China’s second-tier city Changsha told that it achieved double-digit growth.

Luxury Outlets in China Saw Outstanding Chinese New Year Results 

What: 6 charts to show how shopping and supply chains were adapting to the pandemic.

Why is it important: Consumers moved online and retailers pivoted to move inventory locked in brick-and-mortar locations.

E-commerce sales boom in pandemic

E-commerce retail sales, % of total sales

E-commerce sales boom in pandemic

Retailers ship from store to move inventory

Count of annual or quarterly reports mentioning "ship from store"

When stores closed and customers moved online, retailers looked for a way to get in-store inventory moving. Target, for example, has been perfecting its ship-from-store model for years.

Retailers ship from store to move inventory

Retailers move to the curb

Count of annual or quarterly reports mentioning "kerbside pickup"

The other option for retailers was to get customers to pick up at the kerb. This simplifies the supply chain it’s cheaper for the retailer. But there are questions about how companies will improve these offerings going forward. "Retailers are going to focus on the kerbside, trying to make that experience actually enjoyable," said Dave Gill, vice president of insights and analytics at Rakuten Intelligence.

Retailers ship from store to move inventory

More shoppers choose to pick up orders

Order for pickup as % of all buyers

"More than 50% of our BOPIC orders for the fourth quarter were delivered kerbside," BJ's Wholesale Club CEO Lee Delaney said on the company's earnings call this month, referring to the retailer's buy-online-pickup-in-club option.

More shoppers choose to pick up orders

Amazon's network struggles to keep up

Click to ship and click to door, measured in days

It is worth noting that these figures are an average that includes marketplace sellers for which Amazon doesn't control the supply chain.

Amazon's network struggles to keep up

Amazon's orders start showing up late

Percentage of Amazon orders arriving late

The slowdown in Amazon's network resulted in an uptick in late shipments, but the retailer has seen these figures largely recover.

Amazon's orders start showing up late

6 charts show how a pandemic upended retail supply chains 

What: the first &Other Stories store opens in iAPM mall in Shanghai.

Why it is important: the first physical store in China, following the Tmall store opened in 2019.

&Other stories, which operates 72 stores worldwide, will open its first store in China after having opened in Korea in 2017 and TMall in China in 2019. Interestingly, the strategy in China is at the opposite of what has been conducted in the rest of the world, as the retail footprint of the brand has been constantly expanding without touching the fastest growing market. It will open in iAPM high end mall this coming Fall.

H&M’s Arket, & Other Stories to Open First Physical Stores in China