What: Spectators will have 150 minutes to unravel a mystery based on a 19th-century novel by French author Émile Zola, itself inspired by the department store.

Why is it important: Shoppers will have the opportunity to find out on Friday and Saturday nights starting Sept. 2, as the department store plans to offer a cycle of immersive theatrical productions in honor of its 170th anniversary.

Within 45 minutes of the store’s 7:45 p.m. closing time, 250 spectators will be welcomed into the store for a celebratory cocktail that will soon take an unexpected turn that will take them back to 1862 and the fictional department store.

The musical score will be performed live, as 40 actors live out 12 tableaux throughout the 150-minute playtime. Guiding the audience through the story — and the store — will be French journalist and radio host Fabrice Drouelle.

Le Bon Marché celebrates 170 years with immersive play

What: Central Group Europe CEO believes food and hospitality are only some of possible future developments at Selfridges.

Why is it important: The closing of the deal between Thailand’s Central Group and Signa to buy Selfridges Group under a 50/50 partnership is expected by the end of June, but the wheels have already been set in motion, with several projects in the pipeline that are sure to shape the future retail scene.

The transaction will see Selfridges Group become part of the combined Central and Signa portfolio of luxury department stores, which includes Rinascente in Italy, Illum in Denmark, Globus in Switzerland, and The KaDeWe Group which operates in Germany and Austria, for a total of 40 stores.

Shopping is no longer the sole attraction of these stores, which offer entertainment experiences, Rinascente was transformed from a traditional store into a luxury destination through an important restructuring of existing stores, closures, and openings, as not all could stand as department stores for the future.

The group plans to add additional opportunities in the food area and offer more high-quality foods, they plan to redevelop the Selfridge Hotel which has been closed, they will also reduce the amount of space decided to a parking lot nearby for either more retail space or to develop a residential project.

The group does not rely only on established labels and he noted that it is costly for smaller brands to open in key, central streets in cities such as Milan, Berlin, or London. Department stores offer the quality of service, the environment, and the foot traffic that can help them grow their businesses.

Selfridges’ opportunities ahead

What: On April 6th, Selfridges unveiled their new four-week pop-up that imagines the earth-conscious shop of the future.

Why it is important: The space allows customers to watch products of tomorrow being made up close, as the 2.3 meters tall 3D printing machine ABB IRB 5700 and to discover how innovative products made from atmospheric carbon, mushroom and pineapple leathers are created.

This supermarket of tomorrow is the latest manifestation of British upmarket retailer’s Project Earth sustainability strategy, which was introduced in 2020. It aims to “examine future shopping habits” and open “a conversation around consumption and physical ownership,” according to their creative director Emma Kidd.

This pop-up will also include a series of shoppable laser-cut corset belts and made-to-order dresses made with recycled ocean plastic from Iris Van Herpen, 3D-printed shoes by Jean Paul Gaultier and real-time tailor-made designs by artist Tejumola Butler Adenuga in collaboration with Crocs, as well as diamonds made with repurposed atmospheric carbon by Sky Diamond.

Selfridges is giving ‘The Corner Shop’ a spring update 

What: Investors seemed to wonder about the upside to the $200 million minority investment that Farfetch plans to make in Neiman Marcus.

Why it is important: This deal gives Farfetch a much stronger footing in the key U.S. market and an opportunity to push more goods through its platform.

Farfetch has, at times, been a tough company for investors to understand however analysts have estimated that the partnership with NMG would contribute about $20 million in profits to Farfetch in fiscal 2023 and about $100 million over the medium term.

The partnership will start with the “re-platforming” of Neiman Marcus’ Bergdorf Goodman website and app. But the deal will eventually also bring Farfetch’s high-tech approach to Bergdorf’s New York flagship and plug the whole Neiman Marcus business into the Farfetch ecosystem.

Analysts are trying to get their head around Farfetch-Neiman Marcus Deal 

What: A new study suggests virtual malls may bring good news for real ones.

Why is it important: Among those who do spend time in virtual worlds, there’s a healthy appetite for shopping the metaverse for physical products, with virtual malls being of particular interest.

The metaverse survey polled 557 online shoppers of different age groups and, nearly half of the respondents said they hadn’t heard of the term. Less than one-fifth said they were familiar with virtual worlds or participated in them. The researchers drilled down into this group to glean insights into their interests. That’s when they saw that a significant portion want their avatars to hit the mall, particularly older consumers.

The interest breaks down to 29% of 18- to 29-year-olds, 35% of 30- to 39-year-olds, 35% of 40- to 49-year-olds, and 37% of 50- to 59-year-olds. The generational difference could come down to who even remembers the time when the mall was the social and cultural touchstone for communities.

The shopping orientation could be influenced by the nature of this sample as well, as more than half, at 5%, happened to be women. The study also looked at other contexts, inside and outside the metaverse, including virtual events, social commerce, and livestream shopping, the latter of which hasn’t latched onto the mainstream consciousness either.

Can the metaverse save malls?

What: Products that play on their scarcity both in the metaverse and the real world.

Why it is important: Such an approach could be interesting for department stores when designing special collaborations with brands, or even for their own private labels.

Luxury Italian brand Another-1 has launched a limited edition pair of sneakers that can be worn in the metaverse (under the form of a NFT) or in real life. 5,555 pairs will be made available and are available in 34 colour combinations.

When customers are buying the NFT, they do not get to chose the design, but they can swap the colour for another one on a dedicated platform. This project aims to make the most of the collection frenzy that has been hitting the sneakers market, with many customers buying and never wearing their products, in order to let them grow in terms of value.

An Italian luxury brand releases sneakers wearable both in the metaverse or IRL 

What: Neiman Marcus Group is advancing its sustainability journey by installing two, 500-ton water-cooled Trane chillers at the Bergdorf Goodman’s Women’s Store, located in the heart of New York City’s retail district.

Why is it important: Implemented in partnership with Trane by Trane Technologies, a global climate innovator, this environmentally friendly makeover of the historic, 94-year-old building utilizes innovative, energy-efficient, decarbonizing technology, enabling the retailer’s elimination of natural gas use and electrification, transition to renewable energy use and carbon footprint reduction.

The installation of these chillers will result in an annual reduction of 642 metric tons of carbon – equivalent to the greenhouse gas emissions from 138 gasoline-powered passenger vehicles driven for one year. Along with nearly USD 61,000 in annual energy cost savings.

The elimination of natural gas use in the facility is especially noteworthy when considering in April 2021 the NYMEX natural gas price was USD 2.854/MMBtu, compared to USD 5.336/MMBtu in April 2022. Natural gas pricing is rising quickly, increasing savings for the Neiman Marcus Group even more significantly, and mitigating their price risk.

Bergdorf Goodman’s commitment to sustainability 

What: This offer expands Prime shopping benefits to provide merchants the opportunity to grow their online platforms.

Why it is important: The Buy With Prime expansion will offer millions of US-based Prime members to shop directly from merchants’ online stores with the same kind of advantages they get when shopping directly from Amazon, such as free returns on eligible orders, fast and free delivery, and easy checkout.

In the beginning, participation will only be available by invitation for merchants using Fulfillment by Amazon (FBA) and will progressively be rolled out through 2022 as more are invited to take part, including those not selling on Amazon or using FBA.

Amazon has unveiled its new Buy With Prime offer for third-party websites

What: Neiman Marcus Group CEO, Geoffroy van Raemdonck, honored at the Fashion Scholarship Fund (FSF) Live Event supporting the next generation of industry leaders.

Why is it important: CEO, Geoffroy van Raemdonck, was honored at the Fashion Scholarship Fund 85th Annual Awards Celebration: FSF LIVE for his support of The Heart of Neiman Marcus Foundation's partnership with the FSF, dedicated to promoting diversity in the fashion industry by mentoring and preparing the next generation of industry talent.

As a long-standing partner of the FSF, NMG donated over USD 550,000 to the organization with funds raised through the generosity of corporate giving, brand partners, technology and marketing partners, and customers. Additionally, NMG hosted this year's FSF Scholars for programming at the Bergdorf Goodman flagship in New York City.

Neiman Marcus CEO honored at the FSF event 

What: From altering products to buying materials in bulk, brands and retailers are adapting to a volatile market.

Why is it important: Brands and retailers are struggling to preserve cash at a time when everything from labour to materials to energy is becoming costlier daily.

Raising prices alone won’t be enough for businesses to maintain healthy margins. Managing inflation could also mean negotiating better rates with suppliers, using deadstock, introducing lower-priced products and more.

The first step in preserving capital is being efficient, brands should look at small measures, such as ordering fewer samples, along with bigger solutions. Also, look to alter products in small ways, such as hang tags, zippers and packaging, for instance, are subtle enough to change without eliciting too many complaints from customers.

Optimizing production costs by powering factories by solar energy or exploring new production partnerships with vendors who could make the same product for cheaper.

Purchasing a larger-than-usual quantity of materials is an easy way to negotiate lower prices with suppliers, especially when those prices are changing daily also seeking partnerships with other brands in order to build up negotiation leverage.

Finessing the price increase with loyalty programmes and encouraging customers to buy in stores, where margins per purchase are higher. Also, introducing a new assortment of low-price, low-cost products.

How brands adapt to rising costs

What: Walmart is making moves to expand its roster of private label brands and announced the launch of Love & Sports, its new activewear and swim brand created in partnership with designer Michelle Smith and cycling instructor Stacey Griffith. Starting with activewear, the collection is rolling out 1,500 Walmart stores, with swim slated to arrive in the next few days and footwear and accessories slated for the fall. All items in the collection are priced between USD $12 and USD $42.

Why it is important: The launch into women’s activewear marks Walmart’s latest effort to expand its roster of private label brands, an increasingly popular move among major retailers.

Women’s private label activewear brands made up 40% of the market in 2021, according to Matt Powell, NDP’s VP and senior industry advisor for sports. And private label activewear was 28% of the activewear market, representing the largest share in this category.

Walmart launches activewear collection 

What: Next has opened its first department store-style location with an upsized in Watford.

Why is it important: It comes at the same time as M&S is moving towards a department store model, selling more third-party brands, after UK retail lost Debenhams as a physical stores business due to the impact of the pandemic.

Next in Watford brings together its regular clothing and homewares offers, all well as including the beauty ranges that it has been diving deeper into in recent years and adding a Victoria’s Secret to the mix as part of its UK licence deal for the giant US lingerie brand.

The new ‘department store’ covers almost 95,000 sq ft across three floors with an extra 4,500 sq ft Victoria's Secret branch that has its own entrance as well as being accessible from the Next branch.

Next opens new department store

What: After closing physical stores, Amazon doubles down on one-day delivery.

Why is it important: Prime members will love an increasing number of Prime shipments delivered in just one day. The company may need to justify this year's USD 20 Prime fee spike, as well as the doubling of fulfillment capacity in the last two years, which was necessary to meet demand during the pandemic.

Having largely abandoned brick-and-mortar retail outside of grocery, with traditional retailers mastering digital and omnichannel commerce and consumers returning to shop in stores, such swift delivery may be an important differentiator. Amazon lost market share to physical retailers during the holidays.

The company does plan to open a clothing store later this year, which may or may not be what rumors of its department store ambitions were about. But so far, Amazon hasn't proven adept at physical retail.

Amazon’s brick and mortar lacked a real purpose, they were designed for people to pop in and browse rather than as destinations where people would head on a mission to buy something. Ultimately, this wasn't great for driving footfall especially in an era where people are visiting shops less. The other issue is the assortment which, in many outlets, was disjoined and unfocused.

Amazon doubles down on one-day delivery

What: Retail's next frontier promises infinite possibility but won't be for everyone. Moves made today will decide retail's leaders versus laggards.

Why is it important: With the Covid-19 pandemic the world leaped five to seven years in the digital revolution. Stores are no longer the default shopping channel, but 72% of consumers still rely on stores as part of their primary buying method. Over the next five years, leaders are buying into the prospects of digitization of the physical world.

The universality of smart devices and the pervasive acceptance of digital tools has created an evolved consumer who no longer sees online and offline shopping as distinct experiences. The team at ChangeUp identified three key themes that should frame up next moves:

Liminal Defiance

Today, people drift in a fluid state of always-on consumerism, not chained to any specific journey or destination. As such, perspectives must evolve from in-store or online to non-spaces: brands thriving in an undefinable and malleable existence. There must be an acceptance of and appreciation for liminal brand experiences that are not built as physical or digital but rather created to achieve a certain objective – tools and tactics agnostic.

Cognification Commerce

The way in which data from devices is being collected, analyzed, and used is evolving. Increasing the "smartness" of the store speeds up the time between gathering insights, making decisions, and seeing results, ultimately driving a synergistic and multiplying effect across all channels over time. Armed with of-the-moment intelligence, proactive retailers will be able to make stores as responsive and addictive as the algorithm that controls their shoppers' TikTok feeds, transforming the store experience at the speed of a swipe.

Untethered Experimentation

The unknowns of XR, including AR and VR should be seen as the melding of worlds, not as a hypothetical outskirts idea to be ignored, but rather a bold expansion of our universe and in turn, expansion of profit. Taking full advantage of an experimentation mindset retailers should see this as an opportunity for creative exploration, data collection, and ultimately, growth.

With the world changing, understanding what trends to pay attention to, what technology will be most prevalent, or what move to make next can be overwhelming for physical retailers. Leaders, however, will see the maze of unknowns as pathways to discovery, of brand opportunity, consumer loyalty, and ultimately, business growth, if they are willing to step across into a new retail frontier.

Physical retail’s endless opportunities

What: George has partnered with the streaming giant Netflix for a major product tie-up, an interesting partnership for this private label.

Why is it important: The partnership in 50 George at Asda locations and online under the ‘George x Netflix’ banner. It includes a wide range of fashion and lifestyle products. As part of the initial collaboration, 12 Asda stores will offer a wide range of clothing and general merchandise products and a further 38 will stock Netflix clothing and accessories.

The partnership will also see George launch a number of exclusive Netflix ranges throughout the year.

There will be a ‘flagship’ concession within Asda’s Milton Keynes store too, where George has worked with Netflix to offer customers a more immersive experience. This includes branded changing rooms, dedicated product areas, and access to the full range of licensed products.

George at Asda sells Netflix merchandise

What: Retail veteran Walter Loeb on the latest Macy’s CFO announcements at the JP Morgan Retail Roundup.

Why it is important: All IADS also report the same trend, with customers keeping on spending but directing the money towards other categories or even industries.

Walter Loeb reports Macy’s CFO’s vision for 2022, as he sees this year as a remarkably uncertain one. While there is no doubt that customers plan to spend, the challenge lies in knowing where they will spend (in shopping, experiences, leisure…?) leading to a difficult planning. In order to prepare for this unpredictability, Macy’s plans to:

• Test new product categories thanks to their marketplace,
• Fine-tune CRM to re-engage customers,
• Increase the number of smaller locations (Bloomies, Market by Macy’s, Backstage),
• Use geopricing to give stores more leverage,
• Monetize both real estate and the retail media network,
• Base buying decisions on predictive demand,

These actions are expected to generate a 38% gross margin in 2022 (in spite of a single digit growth) vs. 35% in previous years.

Walter Loeb expresses reserves in his post-scriptum, especially in terms of execution of the plan.

Macy’s prepares for an unpredictable future 

What: The new Zara store in Madrid, concentrates all the innovations of the brand: make-up simulator, application to book your turn in the fitting room or even QR code to make an order.

Why is it important: Take a dress, pants and sweater in store, scan the label yourself with your phone using the app, unlock the lock with a QR code and get out. No more checkout at the new Zara store in Plaza de España, Madrid.

The largest Zara in the world offers over 7,700 m 2 of surface all the latest innovations of the Spanish brand. No more queuing in front of the fitting rooms: you can book your turn with the application, which sends a message when your turn comes or simply take a ticket.

Customers can now test the make-up from the new Zara Beauty line with a simulator that sends an image back onto a screen with the eyeshadow or lipstick in question.

To return an order placed online, download a QR code on the application, pass it under a scan which automatically opens a mailbox and drop it there. Just opposite, another mailbox allows you to leave your used clothes, recycled thanks to a partnership with the NGO Caritas. The withdrawal of packages purchased on the site is also robotized and allows you to withdraw your package in eight to twelve seconds. And rather than wandering around looking for an item spotted on the site, the application locates it in the store and indicates it on a map.

A true “pilot” store , it represents what will perhaps be the store of the future, a space that blurs the differences between online sales and in-store purchases. Nearly 150 million people have already downloaded Zara's app and 230 million follow the brand on social media. A collection was even created especially for the metaverse called Lime Glam, that can be worn both on the street and in the virtual world.

News Zara opens largest store in the world in Madrid (En Français)

What: Local e-commerce companies are starting to see their sales growth stagnate this year, amid intensifying competition as more firms enter the rapidly growing online retail sector.

Why it is important: E-commerce operators had previously been growing by at least 20% to 30% each year, but the rate slowed to 12% in February from a year ago, according to data released by Statistics Korea.

Coupang, the country's largest e-commerce firm established in 2010, has grown by nearly 30% every year based on its overnight delivery system with some 100 distribution centers around the country. Its losses also accumulated to over 6 trillion won due to construction costs for more logistics centers, but it still plans to build more. In order to do so, it has to make a turnaround by 2024. This is why it has increased its paid membership fees.

In 2021, SSG.com, Shinsegae Group's e-commerce unit, was up by 22% year-on-year. However, SSG.com is concerned as eBay Korea which is failing to create big synergy its other retail units.

Lotte Group's online shopping mall Lotte ON is still struggling to make its presence known in the e-commerce scene. Its revenue showed a 22.7% increase in the fourth quarter of last year, but there was no prominent driving force.

Korean e-commerce explosive growth comes to end 

What: Farfetch has made many investments and acquisitions on its quest to dominate luxury fashion, and now it’s doing the same in beauty.

Why is it important: Following its acquisition of Violet Grey and the minority stake it took in Neiman Marcus Group the platform will launch beauty on Wednesday with an assortment of over 100 prestige brands.

Off White, which is owned by Farfetch, will launch four fragrances with the retailer, while Browns Fashion, the London-based luxury retailer, is also launching a limited beauty assortment online and in its three brick-and-mortar doors.

Farfetch is looking to differentiate itself with a gender-neutral assortment in an approach it is calling “Beauty Beyond Boundaries.” They want to be conscious of the fact that they have a diverse audience of pre-existing clients, and we expect to have a huge influx of new customers.

While Violet Grey and Browns will lean into small, curated assortments, Farfetch will fulfill orders with inventory from the two retailers, as well as its own buy. Digital activations will range from Roblox to The Sims 4, wherein content creators will create their own beauty avatars. Farfetch’s website will also include virtual try-on for makeup, starting with lipstick and later extending to complexion products.

In addition a campaign called “Your Choice. Your Beauty. Your Farfetch.” It is inaugurating the Global Beauty Collective, a committee that will aim to “educate, inspire and build a sense of community.”

Many of the brands that are on Violet Grey will be on Farfetch, sometimes with a fuller assortment.

Farfetch Goes Big on Beauty

What: As traditional retailers battle to retain consumers’ attention in an increasingly digital world, the role of stores is shifting away from products toward experiences.

Why is it important: The coronavirus pandemic accelerated the shift to online shopping, and with the metaverse looming, retailers are luring back visitors with formats that employ sight, sound, and smell to transport them into dimensions previously associated with gaming or movies.

Stores are no longer only competing with cafés and restaurants but competing with a Fortnite, or Roblox, or Netflix or TikTok. There’s a new generation of young customers who have extremely high expectations and a well-established aesthetic sensibility and taste level as a result of spending more time online.

The evolution has not been lost on department stores, which are competing to offer visitors transformational experiences.

La Samaritaine reopened last year after a 16-year renovation and teamed up with French audio technology company Devialet and aerospace firm ArianeGroup on what it dubbed a “sound journey to space.” Visitors entered a white sound-proofed cube where eight Phantom I Devialet speakers broadcast the sound of an Ariane 5 launch from Arianespace’s Guiana Space Center.

Selfridges touted “a new kind of retail therapy” with their Superself wellness event including experiences such as confidence coaching, breath work, sex therapy, and sensory pods promising “a safe trip.”

While the development of the metaverse is still in its early stages, retailers can’t afford to ignore its potential impact. Computing becomes spatial and is going to be a major shift. Retailers need to be investigating and investing in that space but it’s early to say what it will be like and what it will mean for retail.

Retailers get immersive as metaverse looms

What: Uniqlo announced the launch of its new 'Buy With Purpose' feature that highlights sustainable styles, while giving back. The new program is one of Uniqlo's latest efforts to extend its LifeWear philosophy of making good clothing and also a better planet and society for all.

Why it is important: The feature, bringing another ‘green’ label on the fashion market, rewards customers' purchases of certain items with a donation made from Uniqlo on the customer's behalf to one of three non-profit Uniqlo partner organizations.

Uniqlo introduces 'Buy With Purpose' feature 

What: Retail rents in Hong Kong are at decade lows as the territory looks to re-open from strict Covid-19 restrictions.

Why is it important: Tenants have already started renegotiating leases by exercising bargaining power ahead of a proposed law that will allow a moratorium on payments. Government pressure and the need to keep retailers’ businesses afloat have also prompted property owners to offer discounts.

Owners of malls and street shops are struggling to get rents back to pre-pandemic levels that made Hong Kong one of the world’s most expensive markets. That’s hurting a key source of income for developers at a time when the residential and office sectors are also under pressure following the government’s strict response to the health crisis.

Lawmakers are expected to pass a bill as soon as this month that will give tenants a three-month grace period on rental payments after Covid restrictions left stores shut or deserted and caused retail sales to plunge. Those that renew rents won’t be subject to the relief, giving them leverage to ask landlords for discounts instead.

While the government’s latest round of consumption vouchers distributed in early April are set to boost retail sales in the city, they may not be enough to lift all businesses out of their misery.

Hong Kong landlords brace for deeper cuts in retail rents

What: A reflection of the CEO of Harvey Nichols on her journey since day one.

Why it is important: Appointed 10 days before the pandemic, Malothra had to figure out by herself the means to face an unprecedented situation. The synergies with its shareholder based in Hong Kong and with previous experiences of pandemic proved quite helpful.

Harvey Nichols is owned by Dickson Group and represents eight stores in the UK and Ireland. Manju Malothra joined the company in 1998 as an audit manager, and climbed her way across the company since then, till joining the top position 10 days before the Covid hit in 2020.

For her, her inexperience at the job was compensated by the fact that she intimately knew the company, and that she, as other CEOs, had to face something entirely new, where creativity and resilience were more important than previous experience. In addition, Dickson Group, based in Hong Kong, already had experiences of pandemic, and could guide her into making the right decisions, such as closing stores before the government mandate and relocate stocks to its warehouses instead of stores.

Harvey Nichols posted a turnover of £121.3m in 2020 (year ending in March 2021), -45% compared to the previous year, and losses increased from £16.3m to £39.6m.

For Malothra, the death of department stores is a fable, as she mentions that Harvey Nichols, still seen as an authority in the country when it comes to Fashion, has competitive advantages: a curated offer, and a solid customer base.

Interview of Manju Malothra, CEO of Harvey Nichols 

What: Rent the Runway’s revenue is up from last year, with the number of active subscribers more than doubling, but both figures remain below pre-pandemic levels.

Why is it important: Despite improvement from 2020, Rent the Runway has yet to recover sales and active user count to pre-pandemic levels. Still, the platform expects to break even by the end of next year. Consumers have been slow to embrace rental over resale and fast fashion, two cheaper and easier alternatives.

Rent the Runway reported USD 203.3 million in sales for 2021, up 29% from the previous year, although still below its peak of USD 257 million in 2019. Active, those paying up to USD 149 a month to rent clothes, more than doubled to 115,240, but also remained below 2019 levels. The company fell deeper into the red, reporting a net loss of USD 211.8 million in 2021, compared to USD 157 million in 2019.

Even if there are enough shoppers looking for new outfits on a weekly basis, rental services have faced increased competition from resale sites, which similarly promise an endless wardrobe at a relatively affordable price. Shein and other online fast-fashion retailers offer complete outfits for under $20, cheap enough to be worn once and thrown out.

On a rental service, customers only have access to what’s available, and they must also return every piece they borrow. That means customers are spending hours perusing the website and visiting UPS about to drop off returns.

If Rent the Runway can continue to grow its membership while decreasing its cost of operation, it has a future. Rental can be a nice, niche business, not a billion-dollar business.

Rent the Runway’s journey to profitability