What: Innovation in catalogue-based search shopping has created a new application combining elements from Pinterest, Instagram, and Farfetch.

Why it is important: The goal of the app is to connect brands, shoppers, and tastemakers for a new kind of shopping experience.

Sept follows a fashion marketplace model similar to other digital shopping apps but lets users interact with each other by sharing their shopping baskets, purchases and wishlists. For now, Sept’s biggest demographic is the Middle East, a market that engages heavily on social media. Al Dhaen, the creator, focuses on building the brand by bringing together macro- and micro-influencers to connect with customers via special activations which are promoted on other social media platforms.

To date, Sept works with 70 different brands and includes vintage luxury products in partnership with The Luxury Shopper, a personal shopping and product sourcing service that’s available to all users.

New shopping app Sept

What: Online beauty sales drop in 2022 as customers return to brick-and-mortar shopping.

Why it is important: The trend of wellness and beauty continues to rise as 1010Data reveals that the 14% drop in online beauty sales is connected to the return to in-store shopping.

The beauty industry remained resilient during the pandemic and likely will continue despite inflation, supply chain issues and tight labour markets. Retailers continue reporting positive year-over-year earnings showing growth in the beauty category.

Online beauty sales remain up 36.3% over pre-pandemic levels, per 1010Data’s findings.

Online beauty sales drop 14%

What: Tiktok abandons the deployment of its project in the face of the weak returns encountered by the process.

Why it is important: Despite Tiktok’s abandonment of bringing “live shopping to the West”, the market remains in the line of sight of many players like Amazon or Twitch.

After being one of the most downloaded apps during the pandemic, Tiktok’s addition of short or live videos onto the platform led to the ambition of bringing live shopping in the West. Live shopping has indeed experienced unprecedented growth in Asia since 2017, 280% per year until 2020, according to a report by McKinsey.

Live shopping still arouses ambitions at Facebook, Twitter, Pinterest, and Ebay which deployed a platform dedicated to direct sales this year.

Tiktok abandons Europe and U.S. "live shopping" project

What: Neiman Marcus and Bergdorf Goodman owner seeks to revolutionise luxury experiences through digital innovation.

Why it is important: Fashion brands are leading the charge in boosting their investments in technology, estimated to grow from 1.6% and 1.8% of sales in 2021 to between 3 and 3.5% by 2030.

For brands and retailers, the focus of digital investments is revolving around technologies that offer the greatest impact to clienteling, their sustainability impact and back-of-house operations, to best position their businesses for the opportunities to come and see a measurable impact on their bottom line.

Recognising the significance of technological advancement within the industry, Neiman Marcus has dedicated over USD 200 million to digital innovations, with a focus on in-store and supply chain investments. To meet its customers’ expectations to access retail anywhere, any way they choose, the company is strategically advancing tech programmes across its stores, e-commerce platforms and digitally assisted remote experiences.

Neiman Marcus recently partnered with Farfetch Platform Solutions (FPS) to replatform the Bergdorf Goodman website and mobile app, and open it up to international expansion. Farfetch has also made a USD 200 million minority common equity investment in Neiman Marcus to further accelerate the company’s growth and innovation through investments in technology and digital capabilities.

Neiman Marcus has reimagined its technological approach from the bottom-up, doubling down on its commitment to integrated luxury retail by equipping its workforce on the shop floor with digital selling tools such as the “Connect” platform, powered by the SaaS programme Stylyze. Stylyze provides product attribution data, as well as digital outfit and room builders. Within its digital expansion strategy, Neiman Marcus has opened a hub in India to support the group’s daily operations.

Neiman Marcus is looking to plug in other external technologies that ultimately support the brand experience they are trying to create.

Neiman Marcus Group optimising its digital transformation

What: Luxury brands and startups are betting on the growth of pickleball, padel, rugby, boxing and skiing to inspire a new appetite for sportswear.

Why it is important: The activewear industry has seen tremendous growth over the past two decades. Brands like Lululemon or Gymshark have gained huge success through catering to emerging sports trends like yoga or strength training which allowed them to grow with the momentum of the once niche sport and helped them to compete with larger brands like Nike or Adidas who cater to multiple sports.

Today brands are looking at niche sports yet to be associated with established apparel companies. The sports that have been identified as having promising growth include pickleball and other racket-based sports, skiing, rugby, and boxing. Supporters of these emerging trends highlight the importance of community motivating consumers to buy sport-specific gear. Instead of reusing yoga or tennis gear, consumers are enticed by an in-group mentality.

The next big category for activewear

What: Bath & Body Works is operating a 360 U turn on the return policy.

Why it is important: The days of liberal policies and generous returns are over. Will customers understand such a change or will that translate into a lower loyalty?

Bath & Body Works have decided to significantly restrict their once-liberal return policy: in a selection of stores, customers will be limited to returning $250 of non-receipted returns, within 90 days maximum, and customers will have to show an ID document.

This is quite a long way from their initial posture, part of the retailer brand’s promise, which allowed to return “anything, anytime and for any reason”. The system was probably too permissive: customers were able to return products that were mostly or completely used. Now, products showing wear and tear will not be accepted anymore.

Bath & Body Works change their return policy 

What: Kohl’s returns to previous strategies after negotiations with The Franchise Group fall through.

Why it is important: As negotiations with The Franchise Group collapsed, Kohl’s chief executive officer, and chairman Peter Boneparth returned to the company’s earlier strategy of monetizing real estate to avoid selling the company. Kohl’s owned real estate was valued at around 8 billion USD by activist investor Macellum Advisors, though Kohl’s has not disclosed the value of its real estate. Kohl’s owns about 400 of its more than 1,100 stores.

At various times during this year, preliminary offers were around 60 to 70 USD a share, but the stock market’s volatility, the changing retail environment, and, possibly, Kohl’s financial performance, brought the price down. The list of potential buyers of Kohl’s has been exhausted.

With reduced spending, Kohl’s has expressed preparations for increasing promotions and flexible spending. Kohl’s continues to open new small-format stores throughout the U.S. Kohl’s is also betting on a strategy of implementing “zones” designated for female-owned and emerging brands.

To date, there are nearly 600 Sephora shops inside Kohl’s, and 850 should be operating in 2023. The company has acknowledged the risks of potential unemployment, declining health of their lower-income consumer, decreased savings rates, and the overall promotional environment posing a challenge to their Sephora partnership strategy.

The future of Kohl’s after collapsing negotiations

What: The Japanese conglomerate is finalizing its closure of overseas operations.

Why it is important: For the Japanese giant, China is no more a priority and the name of the game is to focus on national profitability.

Isetan Mitsukoshi will close its Chengdu Isetan store in December 2022, without plans to relocate the store. This will represent a write-off of USD 3.2m. The store was opened in 2007, followed by a supermarket in 2018. In total, the closed surface will represent 28.000 sqm. It is estimated that sales in the store represented EUR 50m in 2019, and plummeted by 50% in 2021.

The company is retreating from overseas operations, after having closed the Thai subsidiary in 2020 and the Italian one in 2021.

Isetan Mitsukoshi closes Chinese operations 

What: Selfridges transforms their Corner Shop into a well-being destination in-store to focus on curating sex- and sleep-enhancing products and services.

Why it is important: Selfridges’ Corner Shop is transforming into well-being destination called “The Feel Good Bar.” The concept will include products, services, and professionals on standby to advise clients in improving their sleep, sex, and overall health.

Selfridges highlights the pandemic’s acceleration of the well-being ecosystem becoming more holistic and tech-driven. Supplements, superfoods, and ingestibles were up 125 percent since last year and almost 700 percent compared to pre-pandemic.

The department store is differentiating through a more biologically based offering that includes at-home health tests that allow customers to inspect their genes, blood, thyroid, and more. Many luxurious and unique health-based experiences like acupuncture sessions, IV drips, bio-hacking, and oxygen therapy will become available later in the year. Throughout July the cinema at Selfridges will convert into a sleep session area, allowing customers to take time out between shopping to nap.

Well-being will be extended throughout the store with chef Matthew Kenney offering a plant-based menu and an organic and biodynamic wine list at his restaurant Adesse on the second floor.

Selfridges introduces “The Feel Good Bar”

Going further: Selfridges “The Feel Good Bar”

What: Latin American Fashion Summit seeks to elevate the Latin American fashion industry through an Amazon collaboration.

Why it is important: The partnership with Amazon will allow customers to purchase from Latin American designers thus expanding the reach of Latin American fashion and enrich the industry overall.

The initiative builds on the new Luxury Stores concept for Amazon, which launched the platform to feature both established and emerging luxury brands on its site.

Products are all sold directly to consumers from the luxury brands and authorised retailers, ensuring authenticity.

Latin American Fashion Summit collaborates with Luxury Stores at Amazon

What: Chairman Shin Dong-bin suggests that Lotte Group will continue its capital expenditures despite inflation, rising interest rates, a global slump, and other challenges for the Korean conglomerate.

Why it is important: Earlier this year, Lotte Group pledged 37 trillion won investment over the next five years.

Chairman Shin emphasized that Lotte must transform its business portfolio by incorporating bio, healthcare & wellness, as well as mobility into its existing business lines of logistics, chemical, food, and hotels. Plans were discussed for the group to build up infrastructure, create a healthcare platform, and migrate the chemical business into hydrogen energy and battery materials.

Apart from business plans, Lotte discussed ways to help Busan’s bid to host the World Expo in 2030. It formed a group-wide task force led by Co-Vice Chairmen Song Yong-dok and Lee Dong-woo.

Lotte committed to capex investments despite challenges

What: The shopping mall owner Unibail-Rodamco-Westfield has raised its adjusted recurring earnings per share guidance due to first-half tenant sales in Europe recovering to pre-pandemic levels.

Why it is important: Doubt from renting retailers and mall tenants is improving with results showing in Unibail-Rodamco-Westfield’s first half of 2022 reports.

Retail operation performance, the end of Covid rent relief and higher variable income were some reasons the group believes its first-half year over year was up 53%. Following the group’s de-leveraging plan announced last year, debt has dropped by 1 billion euros. Confident in their assets being in the best catchment areas with affluent customer bases, the group is hopeful to achieve its goals in Europe by the end of the year and in the US by 2023.

The group’s main rival Klepierre has also raised its full-year guidance.

Mall owner Unibail-Rodamco-Westfield raises guidance

What: Amazon is set to purchase One Medical for 3.9 billion dollars as it moves further into health care services.

Why it is important: One Medical’s mission has been to make healthcare more accessible and affordable through in-person, digital and virtual care services by allowing healthcare providers across the US to integrate its technology and enable patients to schedule appointments, renew prescriptions and access health records online.

Amazon Health Services sees the potential to reinvent the health care industry by using its size and platform. The company has purchased One Medical for 18 dollars a share in an all-cash transaction, including net debt.

Amir Dan Rubin will remain as CEO of One Medical.

Amazon Health Services expansion 

What: Analysts view the pandemic’s contribution to the boom in luxury sales as ‘outsized’ and predict a normalization on the horizon.

Why it is important: The post-pandemic revenge spending seen outside of China is expected to dampen in the coming months as recession, inflation, and Chinese economic policies may begin to weigh on luxury consumers.

Looking at Richemont and Burberry, double-digit first-quarter postings show that clients are eagerly shopping as restrictions have been lifted, but background politics and macro trends loom heavy on the market.

Richemont’s sales in Europe grew by 42%, due to “robust domestic demand,” and a return in tourist spending, primarily from American and Middle Eastern clients. Growth was strong across markets, particularly in France where sales increased in the triple digits.

Mainland China was a drag on growth due to COVID-19-related lockdowns, but other countries in the APAC region helped to mitigate those declines. In the 13 weeks to July 2, Burberry’s retail revenue increased 5.4% to 505 million pounds, while at constant exchange, growth was flat.

Burberry surprised the markets with a 1% uptick in comparable store sales after analysts had predicted a 2% contraction. Like Richemont, Burberry also saw strong demand in Europe, with comparable-store sales growing 47% due to demand from local clients and sales to American tourists.

However, Richemont saw better growth overall, reporting sales in the Americas region climbing to 79% and putting it on par with Europe as one of Richemont’s most lucrative regions. Mainland China trends are promising as well with demand for Richemont’s big-ticket items remaining strong. The luxury fashion market stability will be impacted by the consumer sentiment towards macro trends affecting the global economy.

Uncertain longevity for boom in luxury sales

What: Improved economic performance has inspired Frasers to act on serious plans for international expansion through acquisitions and new store openings.

Why it is important: This new expansion plan will necessitate consolidation of the group’s portfolio, reducing the number of Sports Direct stores, but increasing the sales area.

Part of this expansion includes the luxury brand Flannels. Due to great performance, there are plans to double the number of stores in the UK and Ireland and to establish the brand in cities across the European continent.

Frasers is readjusting its strategy by closing locations that are too large for the cities they are in but working on acquisitions, joint ventures and organic openings to further its international operating activities. Its goal is to offer a better experience to customers by optimizing store performance, location and size.

Frasers plans expansion

What: Nordstrom has promoted Deniz Anders to senior VP and chief marketing officer; and, Nina Barjesteh has joined the team as president of Nordstrom Product Group.

Why it is important: The experience shared between these two female executives will be used for Nordstrom to build and transform its private label business.

Nina Barjesteh, who will become the new president of the Nordstrom Product Group, brings her previous experience in merchandise and branding across apparel and accessories for both women and kids. She is leaving her previous role as Dick’s Sporting Goods senior VP of product development and design.

Deniz Anders has had 22 years of experience with Nordstroms, most recently as vice president of marketing. Through her deep marketing knowledge and background with Nordstrom, the combined skills of Anders and Barjesteh are projected to grow and develop Nordstrom Made products.

The efforts made toward marketing and developing private labels indicate a shift in strategy that may grow Nordstrom’s product positioning.

Nordstrom’s growth strategy relies on new executives

What: Brands and customers are still confused about the differences between web3 and the metaverse.

Why it is important:  A McKinsey study predicts that the metaverse will have up to 2.6 trillion USD in value for e-commerce by 2030. While the survey results showed that 64% of consumers indicated they were excited about metaverse shopping, other research from Wunderman Thompson Intelligence showed that consumers have very little understanding of what the metaverse is.

Brands also lack a deep understanding of the difference between web3 and the metaverse. Still, there continue to be many brands joining platforms like ROBLOX, which does not use blockchain technology, to establish a solid digital presence and offer virtual shopping experiences.

Virtual shopping is mislabeled as metaverse

What: Reports show that the acceptance of crypto payments is not always in the best interest of brands or retailers.

Why it is important: Younger consumers are quick to adopt cryptocurrency and many companies are looking at the long-term role of crypto in retail transactions, expecting the current user demographic to grow and change over time. Some companies are justifiably hesitant when they consider their target consumer.

While many brands have recently announced accepting crypto payments, reports show that cryptocurrency is, for the moment, primarily used for investment and trading. In addition, the percentage of women using crypto for payment, trading, or other reasons is significantly lower than it is within the male demographic.

Reports also point to market volatility as a caution for retailers. While it is assumed that fees will be lower, it has been reported that transaction fees for merchants fluctuate regularly. As well, crypto transactions aren’t private since businesses need to report any changes in crypto value as they are subject to capital gains taxes.

Only 2% of U.S. adults used crypto for payment over the prior 12 months, making it clear that smaller retailers should define their target consumer when considering accepting crypto payments.

Retailers navigating crypto payment

What: Business of Fashion explains the driving force behind the menswear market’s unprecedented boom.

Why it is important: In preparation for our IADS Men’s Fashion Meeting on September 6, we would like to share Business of Fashion’s highlights on the menswear boom. Streetwear is out, casual tailored styles are in.

Casualisation has been seeping its way into fashion long before the pandemic, but the work-from-home lifestyle has cemented new silhouettes that prioritise comfort. Surprisingly, the importance of comfort does not equal streetwear. Retailers report that streetwear is losing momentum and loungewear pieces such as hoodies, tracksuits and sneakers are no longer hit items. The items replacing these fall into clothing that can be styled for multiple occasions with a priority on fit and feel. Men’s shirting, casual jackets, loafers, and even accessories like bags and sunglasses are increasing in popularity.

The connection between a more casual yet styled menswear look has been tied to social media and chat platforms (Instragram, Podcasts, Discord channels, and subreddits) allowing men to discover fashion on their own and exchange with each other regarding menswear trends. In addition, gender fluidity plays another role in widening the scope of men’s fashion.

Suiting is being scaled back by both retailers and designers to promote casual menswear like sports coats and knitwear. The trend “blokecore” – a viral subculture that celebrates the style of middle-aged men and has reached 27 million views on Tiktok – is one example of shifting menswear styles and how these trends are communicated.

Men are also favouring a tailored look. Flannels is meeting the rising market demand by investing in a personalized menswear shopping experience. Their Liverpool flagship will be offering alterations and made-to-measure styles with a selection of fabrics from over 10 participating brands.

As suiting fades in relevance brands are pursuing a sportier approach. Brands like Burberry Gucci and Dior are looking to new sports star ambassadors to capitalize on the growing interest from new audiences of men.

Euromonitor projects the category will grow faster than womenswear over the next four years, expanding to 547.9 billion USD by 2026, at an average annual growth rate of 5.8%, compared to 5.3% for womenswear. At London-based luxury retailer MatchesFashion, sales of men’s clothing are up 40% compared to the same period last year, while men’s footwear is up 50%.

Menswear Market on the rise

What: Iguatemi names for the first time a non-family member and a female at the top post.

Why it is important: Even though Iguatemi is a mall operator, its challenges and points of attention are not far from many department stores’ in the world.

Cristina Betts is the first female and non-family member to be the CEO at Iguatemi, succeeding Carlos Jereissati. Iguatemi, a luxury shopping center company in Brazil, currently operates 14 malls, 2 outlets and various real estate locations.

It reports a 30% sales increase for Q2 2022 vs. the same period in 2019, with a stronger performance for apparel, shoes and leather goods which achieved a growth of 51%. This performance is allowed by the fact that 70% of the brands present at Iguatemi are local, and therefore relatively spared by the international issues. This combines with an increased conversion rate with customers realizing that buying in the country is actually equivalent, and more convenient, than buying internationally.

For her, the priorities are:

• Security in malls, especially given the fact that physical retail is here to stay,
• Combination with online, which, in the case of Iguatemi, means a marketplace for luxury brands,
• Being able to cater for the needs of all customers and not only luxury ones, through the right brand assortment and F&B or experience proposal.

Cristina Betts is the new CEO at Iguatemi 

What: Klarna and Shein team up for a pop-up shop in Berlin as part of its 2 Summer Oasis2 pop-up tour.

Why it is important: A temporary experience at Kurfürstendamm 68 in Berlin will welcome Klarna and Shein for a pop-up with events, music, food, and even a beauty bar.

As part of Klarna’s 2 Summer Oasis2 pop-up tour, customers can enjoy discovering Shein’s summer collection in-store with the ability to purchase online at a reduced price and receive home delivery. In addition, customers can attend one of the three workshops. The workshops are focused on beauty and a clothing exchange market.

Klarna aims for the partnership to be an inspiring exchange for customers that can help them decelerate from the bustle of the city.

Shein and Klarna pop-up in Berlin

What: Amazon Fashion Europe has announced its first-ever partnership with Twitch, the video live-streaming service that focuses on video gaming streaming, to showcase its best summer styles and brands.

Why it is important: As many retailers turn towards live-streaming or live-shopping events, Amazon’s collaboration with Twitch will be an example for other fashion retailers to watch when considering their next digital marketing strategy.

The collaboration will see two teams of Twitch content creators enter into a week-long European road trip starting July 23 from the Amazon Fashion Studios in Hoxton, London.

During the race across Europe the “Twitch superstars, emerging creators and fashion insiders” will complete fun fashion challenges hosted by some Amazon Fashion brands, while showing off their Amazon Fashion looks for every location and activity.

Amazon Fashion Europe & Twitch collaboration

What: Secondhand marketplace Vinted unveils ‘Vinted Go’, a new B2B shipping platform.

Why it is important: Vinted Go’s technology, IT and operations infrastructure enable businesses to ‘plug in’ to Vinted’s multi-carrier network through a single integration process. The ultimate goal is to remove the need to sign multiple individual agreements with carriers to get the best-priced and most convenient delivery solution.

The new offering is available for domestic and cross-border deliveries across Europe focusing on PUDO (pick-up, drop-off). PUDO as a delivery option can have lower carbon emissions than in-home delivery, ad will provide customers access to its ever-growing network of national and international shipping carriers in 14 countries.

Vinted Go has a strong pipeline of potential new customers who are looking to improve their deliveries to PUDO, in Spain, Italy, France, the UK, Benelux, Germany.

Vinted’s new B2B shipping platform

What: Bloomingdale’s Aqua is extending its lineage of collaborations by teaming up with Studio 189 on a limited-edition collection.

Why it is important: Bloomingdale’s private brand, Aqua, has a history of collaborating with different designers, brands, and celebrities. This limited-edition collection is a collaboration with actress/activist Rosario Dawson’s brand Studio 189. Bloomingdale’s and Dawson will release hand-dyed garments produced by Studio 189 artisans from Ghana, Africa.

“The special hand-batiked prints that were created exclusively for this collaboration resulted in Studio 189’s largest single fabric order to date, which grants us the opportunity to present the craftsmanship of our artisans to a broader audience. It’s an accessible collection that embraces joy with vibrant and tropical designs fitting for the summer season,” said Abrima Erwiah, head designer for Studio 189.

Bloomingdale’s Aqua brand collaborates with Rosario Dawson’s Studio 189