What: a new step toward diversity.

Why is it important: by collaborating with black-owned brands, the department store helps them grow to scale with limited-edition seasonal collections throughout 2021.

The retailer has been working to increase diversity for years especially now given the different factors happening in the USA environment such as protests against police brutality and racial wealth gap.

By introducing more diverse designs not only will raise awareness about the situation and bring Black representation to a known platform but will also offer customers an elevated fashion experience.

Macy's chairman, Gennette, has witnessed a shift with its consumer base in the department store: "We had about 4 million new customers come into our brand this quarter alone and when you look at the profile of these customers, they were younger and they were more diverse […] they were looking for content and experience that more related to their lives and so that was another impetus for us to get busy on this."

The retailer will also implement the 15 Percent Pledge:  allocating 15% of their shelf space to Black-owned businesses.

The first capsule will launch in March 2021. In collaboration with several brands found only at Macy’s, each collection will feature these creatives:

• Zerina Akers: current costume designer for Beyoncé Knowles-Carter.
• Misa Hylton: known for reshaping the fundamentals of style within R&B and hip-hop culture with clients such as Lil Kim and Missy Elliott.
• Aminah Abdul Jillil: luxury shoe brand, known for being bold and feminine. They have worked with Britney Spears and Janet Jackson.
• Allen Onyia: multifaceted style powerhouse, co-founder of UpscaleHype.
• Ouigi Theodore: founder of The Brooklyn Circus.

Macy’s Celebrates Black Creatives with Exclusive Collections Launching in Spring

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What: Walmart to part with its 92 stores across Argentina.

Why it is important: The company’s international portfolio reset continues.

Continuing plans to recast its international holdings around markets with high growth potential, Walmart has agreed to sell its Argentina business to Grupo de Narvaez, a Latin America retail investor which has retail operations in Argentina, Ecuador and Uruguay.

Earlier this year, Walmart reached an agreement to sell a majority stake in its ASDA chain in the U.K., and did the same in Brazil in 2018. Analysts believe it may also be looking for a buyer for divisions in Chile and Africa.

Walmart Argentina started operating in the country in 1995 with the opening of its first store in the province of Buenos Aires. Currently, the company is the ninth largest private employer in the country, with more than 9 000 employees in 92 stores, distributed in 21 provinces.

Grupo de Narváez Acquires Full Ownership of Walmart Argentina

What: Department stores transform outlets into culture spaces.

Why it is important: Exploring new ways to differentiate.

As the shopping experience itself is becoming not enough to lure consumers, department store operators are looking for ways to differentiate themselves by transforming their stores into cultural attractions where visitors can enjoy not only shopping but also a variety of culture and art.

Lotte Department Store started setting up experience-focused cultural facilities within its outlets across the country last year. Hyundai Department Store also built a cultural space at its Pangyo branch, south of Seoul. And Shinsegae Department Store is running professional galleries at its flagship location in Seoul and as well as stores in Busan, Gwangju and Daegu.

Department Stores Transform Outlets from Shopping Centers to Culture Spaces

What: the luxury retailer has appointed Tom Athron (picture here) as their new CEO.

Why is it important: Tom Athron will replace Ewan Venters after he announced in September that he would leave the company. Venters has been chief executive since 2012 and will start a new job at art gallery Hauser & Wirth.

Set to join on 1 December 2020, there will be a month-long handover process between the two. Tom Athron comes from Matchesfashion where he leads e-commerce teams and managed logistic customer experience. He also worked as a trading director at the John Lewis Partnership and CFO at Waitrose for 12 years.

Talking about Fortnum & Mason Athron said that his new company is “a traditional British business with a truly global outlook, a strong purpose and increasingly desired around the world”.

The luxury retailer is managed by the Weston family whose other retail interests include Selfridges and Primark.

Fortnum & Mason names Matchesfashion's Athron to top post

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What: Nike allow students to analyse its digital data to improve website and customer’s engagement.

Why it is important: Getting advice from the generation they will be depending on to drive future sales.

Global consumer brand Nike made a bold move this year to up its digital game. It allowed college students from around the world to analyse its digital data and look for ways to improve its website and customer engagement.

Nike agreed to be the corporate partner for this year’s Adobe Analytics Challenge, a 15-year-old competition that gives student teams access to data from the corporate partner’s digital sites that lets them evaluate things like bounce rates, return visits, buyers vs. browsers.

The winning Indian Institute of Technology team had suggestions for how Nike could redesign its website, improve engagement on social media, and focus better on likely buyers. The details of their presentation shared by Adobe contain some good Gen-Z advice on a “Journey Tour” feature, how to incentivise users to create an account, and driving more engagement.

Nike Gets Next-Generation Advice On How To Improve Its Digital Experience

What: Walmart keeps improving its omnichannel capability.

Why it is important: Assets that used to serve a single purpose have to transform into flexible, scalable assets that can be used in multiple ways.

Walmart keeps moving on quickly to use their physical retail stores to not only serve in-store shoppers, but to flex to meet the needs of online shoppers, too. The company has identified four of their stores across the U.S. to serve as test centers where they will continuously rotate new technology, digital tools and physical enhancements in and out of the stores all with the intention of helping associates better and more easily serve customers. Among other examples, they will be testing:

• Omni-assortment to learn what it takes to make all eligible items in the store truly omni.
• Inventory speed to get product on the shelf faster.
• First time pick-rate to help associates navigate to the right locations when picking items for an online order.
• Check-out experience to help transform a transactional experience into a relational one

In This New Era of Retail, We’re Testing New Ways to Operate, and It’s the Customer Who Wins

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• Walmart: thinking outside the (big) box

What: another Japanese department store to close business in Thailand

Why it is important: the closure of Tokyu operations in Thailand makes it the second department store chain to exit the country after the withdrawal of Isetan earlier this year. Competition is harsh in Thailand and the lack of tourists due to the pandemic has been another setback for retailers.

Tokyu department store, located inside Bangkok’s MBK Centre shopping mall, will close doors in January. Tokyu closed its other store at Paradise Park, also operated by MBK Plc, in January last year. The department store has operated in the country since 1985. Tokyu is the second Japanese department store chain to exit the country after Isetan last September.

Tokyu Bangkok announcement

Bangkok's Tokyu store to close in latest exit by Japanese retailer

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What: Local department stores in Korea are pursuing different brand marketing to acquire loyal customers amid decreasing sales due to the Covid-19 pandemic.

Why it is important: It is now imperative for retailers to offer new experiences to customers that will differentiate them from e-commerce firms.

Hyundai Department Store is trying to kill two birds with one stone through its "Eco-friendly VIP system." This is a program giving VIP benefits to customers who actively participate in environmentally friendly activities.  Customers who participate in five out of eight such activities will be given VIP benefits such as three-hour free parking and a 5 percent discount off any item purchased at a Hyundai Department Stores.

They will also be invited to various cultural and fashion events, and can get a maximum eight free cups of coffee before the program ends in December. Hyundai hopes to bring customers back to their shopping mall, particularly young customers who are interested in climate and environmental issues.

Shinsegae Department Store took a different path, partially turning its shopping venues into an art gallery. Starting August, they exhibited 250 works including paintings, photographs and sculptures at luxury stores and VIP lounges. It first started with 120 works but received good feedback and so added 130 more. At luxury boutiques, the art created synergy to boost sales of high-end items by 37% between August and September compared to 2019. Also, customers purchased 28 pieces of art from the boutique while shopping.

Galleria Department Store is hosting an Italian fashion event in collaboration with the Italian Trade Agency for three weeks. At its Apgujeong branch, Galleria will introduce Italian classic fashion brands such as Marni and Cesare Attolini at its select menswear shop g.street 494 homme. The retailer will offer high-end Italian fashion and lifestyle programs for VIP customers at its premium grocery store Gourmet 494 in Hannam. Galleria in Gwanggyo will run a pop-up store adopting the lifestyle theme "Italian Design Parade."

Department stores seek marketing to secure loyal customers

What: the continuation of Walmart’s strategic realignment on US, China and India.

Why it is important: Walmart is downsizing significantly its worldwide activities to focus on core markets and activities.

After selling its stakes in UK’s Asda for the same price it bought it ten years ago, and announcing that it will retreat from Argentina as well, Walmart has announced its will to sell majority stakes in Japanese Seiyu. Walmart bought its shares two times, through the first round in 2002 and then in 2008 when it took full control. Its strategy to bring the American-way of retail to Japanese customers did not really take off, which explains this retreat today.

Walmart sells majority stake in Japanese supermarket chain

What: Three different approaches to the upcoming promotional season.

Why it is important: reviewing the options taken in a competitive FMCG segment can be sources of inspiration for department stores while some of them are currently closed due to forced lockdown.

Black Friday is usually a traditional shopping experience in the US across a weekend, with long lines outside stores. This year will be different:

• Walmart is expanding its promotional period over four weeks, with deals centred on toys, electronics and home products (one category per week).  A limitation of customers in store will be implemented, as the goal remains to have them come to the retailer
• Best Buy is sprinkling promotions over four weeks, with an all-category promotion after that period. There will be a limitation of customers instore, however Best Buy is insisting on its curb side pickup options, as well as a free next day delivery (read out article aboutthe cost of free shipping here).
• Target will be announcing each Thursday the deals for the following week, with a promotional period extended over four weeks as well. A focus on curb side delivery will be emphasized, as well as the lowest-price-guarantee for all items on promotion.

The three retail giants are all extending the promotional period over four weeks, and not a week end, but with a different approach when it comes to dealing with welcoming the customers and how.

Walmart, Target, and Best Buy have revealed their Black Friday plans [...]

What: a new partnership between the Royal Mail in-store service at Selfridge.

Why is it important: In order to offer a “one-stop shop and ship service” for customers, these two companies’ collaboration allows shoppers to ship their Selfridges purchases and letters to Santa while in the store.

Launching on 12 November 2020 until January 2021, customers will have their gifts wrapped and shipped by Royal Mail at Selfridges. “We are excited to team up with Royal Mail and to bring such a bespoke postal service and offer to our customers right in time for the busy holiday season,” Selfridges Store Director Meave Wall said.

Selfridges Oxford Street store will have a special Royal Mail pop-up room to make it as convenient as possible to buy and deliver Selfridges orders for Christmas. “Doing this in partnership with Selfridges is guaranteed to add the Christmas sparkle to top this off. From everyone at Royal Mail, stay safe and get ready for a very merry Christmas with Royal Mail at Selfridges,” said Royal Mail chief commercial officer Nick Landon.

Selfridges and Royal Mail announce post office pop-up for Christmas

What: Virtual stores present new experiences to shoppers who miss the in-store feeling.

Why it is important: Retailers use digital to prepare for rebound of store traffic expected once the pandemic is over.

Retailers such as Ralph Lauren, Groupe Clarins and Gap are experimenting with virtual stores, letting web users navigate digital versions of their physical locations and try out features such as one-on-one consultations.

Digital stores are not new, but the pandemic is prompting more companies to use technology in new ways to connect with consumers, said Mikey Vu, partner at Bain & Co., a consulting firm. And some retailers now introducing such experiences say they will continue to operate, at least for a few months.

Not every virtual store will succeed, he said. As more companies test the concept, they’ll need to better personalize the experience for visitors, make it easier to discover products and make it a fun experience, he said.

Virtual Stores Present New Experiences to Shoppers Who Miss the In-Store Feeling

What: international survey shows the advantages of remote work.

Why it is important: most department stores have instituted forms of remote work for a least some of their staff during lockdowns. We will perhaps choose to maintain some people on remote work (or at least a hybrid version) for longer than the pandemic if, as it would appear, there are many advantages to doing so.

According to an article in The Economist and an international survey by Slack (messaging company), flexible working including working from home was viewed very positively, improving both people’s work-life balance and their productivity. One of the main points is that remote working allows greater time flexibility, liberating workers from the “tyranny of the clock”.

As mentioned by the IADS Academy in their recent presentation, certain functions may not need to be present in a headquarters office for 8 hours a day every day. Evidence suggests that, for some, remote work increases productivity. We should perhaps be looking at least at hybrid solutions mixing remote and office-based work.

Countering the tyranny of the clock

Moving beyond remote: Workplace transformation in the wake of Covid-19

What: Third quarter results reported to the press

Why it is important: Macy’s, while dealing with a difficult market in a country impacted by the third wave of Covid-19, is actually doing better than expected.

While sales are dropping by more than 20% for the third quarter, the net loss of USD 60 million (to be compared to earnings of USD 21 million last year on the same period) equates to a loss of 19 cents per share, when analysts were expecting a 79 cents loss. Macy’s reports that digital sales grew 27% compared to last year, to reach 38% of total sales, and that inventory is down 29% compared to last year on the same period.

Macy’s, Inc. Reports Third Quarter 2020 Results

What: a first store dedicated to second-hand furniture for giant Swedish furniture retailer Ikea

Why it is important: sustainability can no longer be ignored in retail and resale is one of the way to enter the circular economy and eventually become more sustainable. It is important to note that a player like Ikea, which is sort of a fast-fashion retailer for home that has been producing furniture in huge quantities to sell all over the world, is now redefining its business model to reach its sustainability targets by 2030 (including being circular).

The new second hand store is located in Eskilstuna’s ReTuna mall, famous for being the first shopping centre in the world offering only recycled and second-hand products. The used furniture will be repaired or brushed up in an adjacent repair shop, and will then be sold at a reduced price. This is a trial for the retailer that will evaluate results in six months. If those are conclusive, the project could be rolled out to other markets.

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What: Retailers are editing the choices down.

Why it is important: The wider the assortment, the more confused the customer is.

Retailers ramped up choices in recent decades as the internet created a so-called endless aisle that freed them from the space constraints of physical stores, according to analysts and industry executives. They tried to capitalize on the shift toward personalization with a desire to please everyone and added variety to tempt people to buy items they didn’t need.

Now, with choices overwhelming shoppers and clogging supply chains, some brands are moving in the opposite direction. They are trimming styles and colors in the hope that by eliminating the decision paralysis that grips customers when they are faced with too many options, they can boost sales and reduce end-of-season markdowns.

Retailers Cut Back on Choices; ‘We Don’t Need Three Types of Red’

What: looking at a pandemic-proof solution with new eyes for the long-term.

Why it is important: at a moment when we need to adapt and think prospectively, critical thinking is key to really assess the need to permanently implement the emergency solutions deployed during lockdowns.

Ship from store was, for many retailers, a lifeline during the lockdown period, and allowed to leverage inventory, make the most of logistics and sometimes alleviate the strain on e-commerce operations. Post-lockdown, it seems to be a long lasting trend: Best buy in the US has equipped 250 of its stores with such capability, as well as Apple for all its retail network.

However, it comes at a cost: the retailer pays for the shipping costs while the price stays the same, not even mentioning the risk of returns. Furthermore, a long lasting trend from last decades led to a reduction of backrooms in store, which means that, to optimize a store and transform it into an efficient fulfilment centre, some structural investments are needed.

The need to re-train, or think differently, the staff, is also crucial and potentially a hurting process.

Ship from store makes sense in a pandemic. Does it make sense long term?

What: Jelmoli will be present with two new stores in the Circle at Zurich Airport

Why it is important: It still makes sense to expend brick-and-mortar presence when significant potential of foot traffic remains.

The company’s boss Nina Müller explains why she is not afraid of opening new stores in spite of covid-19. According to her, the Circle has great potential as a new district of Zurich. Originally planned to open in September and finally delayed, each of the two new houses (one with a focus on sport, the other with a focus on lifestyle) has four floors. In total, they will have 2,000 sqm of additional sales area to use.

Jelmoli-Eröffnung im «The Circle»: «Wir sind im Schlussspurt»

What: Lotte plans to turn 29 Lotte Mart branches into semi-dark stores by 2021.

Why it is important: The company is converting offline facilities as it struggles with the rapid rise of online shopping.

The new plans were announced amid the continuous struggles Lotte Shopping faces, which have been recently aggravated by the Covid-19 outbreak. In the first half of this year, Lotte Shopping, which operates Lotte Mart, Lotte Department Store and Lotte Hi-Mart, swung to 242.31 billion won ($214 million) in net loss in the first half of the year from 186.06 billion won in net profit during the same period last year.

Lotte goes semi-dark as online shopping booms on

What: Looking back at how the pandemic has forced speeding up innovation.

Why it is important: It is now key to give customers the choice on how, when and where they want to be served.

John Furner discusses key milestones and learnings from his first year at the helm of Walmart U.S. and what’s in store for the future of shopping.

From his perspective, Walmart has been able of reinventing the way they serve customers in a much quicker way thanks to the pandemic, which has basically helped the company speed up innovation and transformation.

He recalls his experience serving Walmart in China from 2012 to 2015, and the fast change he has seen there in the consumers' habits with going from analogue to digital in only a couple of years, because they had built their entire ecosystem on mobile technology.

According to him, that illustrates how fast things can happen without the constraint of legacy infrastructure that we are trying to adapt as we move. Furner estimates that, in the U.S., Walmart has probably skipped 3 or 4 years adapting one channel using other channels to enable it.

Asked about what will change for the supply chain in the future, he forecasts that a dynamic supply chain with inventory flow in different directions, based on where the customer sits, and those which can do that creatively and effectively are going to be the winners.

Walmart’s forward-thinking test and learn corporate culture, its 100% client-centred approach and the pandemic effects are pushing the company fast forward into a fully omnichannel offer where the store remains central, as both a local distribution platform and a place for local customers to keep engaging with the brand. With their stores, network and local anchorage, department stores seem to have key assets to stay main players of their local business.

video: NRF Retail Leadership Series: John Furner, President and CEO, Walmart U.S.

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What: convenience store should have profited from the pandemic. But only some did. Others have been facing competition.

Why it is important: convenience is very attractive to customers. But the idea of convenience is evolving. Formats other than classic “convenience stores” can offer convenient shopping and attract customers. Imagine a “convenient” department store.

Although many convenient stores have benefited from the crisis. Some have not.

Thus sales have grown in South Korea and in Mexico, but in Japan, home to the three biggest convenience store chains, they have been in decline. Rivals (such as supermarkets) are offering the same goods for less, as well as delivery, often to customers’ home. Deliveroo is being used in the UK, DoorDash the US delivery app has opened its own virtual DashMart. Wawa also from the US has started drive-through stores. Others are reporting a surge in deliveries, including US 7-Eleven. It shows that convenience is less a store format and more a customer service which other formats can emulate … including department stores.

Convenience stores may benefit from covid-19—if they adapt

What: good results at Dillard’s in spite of the crisis

Why it is important: According to an article in The Motley Fool, Dillard’s is one of the few department stores which has actually managed to successfully navigate the Covid-19 period so far. After surprisingly good Q2 (May – July) results, analysts were still expecting problems for its third quarter. However, Dillard’s unexpectedly published a quarterly profit in Q3 (ending 31 October).

After a massive loss in its first quarter, the company cleared its inventory down more than 14% over the year. So while sales fell 35% in Q2, gross margin was up to 31.1% from 28.7%. Inventory clearing continued in Q3, boosting gross margin to 36.6%. Although sales remained weak, down by 25%, it managed to reduce retail expenses by 24% keeping costs flat as a percentage of revenue. It also managed to generate cash flow and reduce its short-term borrowings significantly.

This Department Store Chain Is Making Money Despite COVID-19

What: the Dutch department store opens a French-language webshop available at debijenkorf.fr

Why it is important: the expansion of e-commerce will allow for the retailer to gain a wider consumer basis and extend its reach in Europe.

The department store already opened a French-language webshop in Wallonia, Belgium, in September and now enters the French territory. DeBijenkorf already has a dedicated website in Germany and plans to open one in Austria, further expanding in Europe.

CEO Giovanni Colauto explains his omni-channel plans in the new book 'The Future of Department Stores'

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What: holiday initiatives at the US department store

Why it is important: despite a particular season organised around sanitary measures and restrictions, retailers are determined to celebrate the Holidays and find new ways to bring joy and cheer to customers

Nordstrom is re-imagining the season offering festive experiences in-store and online, with Virtual Santa Chats, letters to Santa, Holiday breakfasts and fun DIY activities for the whole family. Customers can book sessions via Nordstrom website.

The personalised,  private, virtual 15-minute video call with Santa is charged USD 20 and 100% of the proceeds benefit Operation Warm (which provides new winter coats to kids in need), as well as Big Brothers Big Sisters of America and Canada. Nordstrom will also host holiday-inspired breakfast in select store restaurants, completed with kids' activities and merry music.

Nordstrom offers virtual Santa chats, holiday breakfasts and fun DIY activities for the whole family