Thai-based Central Group, owner of Robinson, La Rinascente, Illum, Alsterhaus, Kadewe, Oberpollinger and Globus, is expanding its range of retail categories and format by acquiring Thai office supplies, entertainment and culture chains OfficeMAte, B2S and Meb E-books.

Thailand’s Central Group buys OfficeMate, B2S parent for US$390 million

Breuninger has opened a flagship store in Nuremberg. The 11000sqm space offers premium fashion and lifestyle brands, along with design and innovative labels. The store also features a bar, Eduard’s, and the Breuninger confiserie. The opening is celebrated all through the fall with special campaigns and events, and with brands collaborations.

Breuninger opens flagship store in Nuremberg

Luxury Canadian department store Holt Renfrew has teamed-up (again) with The Campaign for Wool for a sustainable capsule collection, including exclusive pieces by Canadian brands Line, and Smythe.. The Campaign, created 10 years ago by The Prince of Wales, aims to increase awareness of wool’s natural and sustainable benefits. Designs were created with wool fabrics from two historic textile mills in England.

Breuninger is investing in the Stuttgart startup autoRetouch, that specializes in automated image processing in the fashion segment. The ambitious start-up autoRetouch was created as part of a project by the Breuninger Data Science department. When the results came in, it became clear that the project had a universal value for companies in the e-commerce sector. To better exploit this potential, autoRetouch spun off Breuninger in January 2020 to become an independent entity.

In November 2019, Frank Postel from Breuninger shared details on the start-up:

• autoRetouch is a fully automated, AI based solution for image processing automation.
• Product images are not retouched manually anymore but pass through autoRetouch. This saves time (it's instantaneous) and money (it's 90%) cheaper.
• The solution allows for instant redesign of an entire webshop, as well as image adaptation for various channels.
• autoRetouch features custom workflows that adapt to individual retailer's needs.

Press release: Breuninger investiert in Startup (in german)

After 3 centuries of existence, the last unit of the Japanese department store Onuma is closing down, due to pre-pandemic woes. Sales went from €95m in 2008 to €59m in 2018.

Death knell sounds for some of Japan's oldest department stores

Retail specialist Walter Loeb looks at the recent developments of JC Penney. After rumours of liquidation earlier this month, JC Penney asked administration for a 120-days reorganization plan period. Sales Q2 2020 dropped by -44% to US $1.4b and Loeb is concerned that cash shortage might have led JC Penney into reducing fashion orders for the coming Christmas season –as JC Penney is reportedly known for being fashion savvy.

The JC Penney enigma continues

Central Retail Corporation of Thailand has announced that it is to unite its Central and Robinson stores and “streamline its fashion segment”. According to management, the business synergy will make the combined department stores more customer-centric and strengthen the company's omni-channel competencies. The consolidation will create a store network which will form the basis of an omni-channel platform offering services, click & collect, 24/7 ordering and collection from any of the 74 Central and Robinson stores nationwide. However, the two names will remain and trade as Central and Robinson. 

CRC Announces Strategic Move, Combining the Strengths of Central and Robinson

On Running is a Swiss based company founded 2010 in Zürich by two friends who teamed up with professional athlete Olivier Bernhard. In 2019 they had 400 employees and generated a turnover of more than US $20m and claim to have grown +60% during the pandemic. Their appeal is based on a Swiss patented technology which equips its $195-278 pairs, sold in 4,000 stores over 50 countries.

They have announced on 15th of September the release of a new pair of shoes, made at 50% with bio-based material, which will not be available on sale but only on subscription, for $29.99 a month. The trick? You receive a new pair every 6 months and they take back the old ones.

National public consultation on responsible fashion

As a member of the Paris Good Fashion it cofounded in 2019, and in line with its own “Go for Good” initiative, Galeries Lafayette joins an initiative alongside La Redoute (historical mail order player bought by Galeries Lafayette Group in 2018), and other brands & fashion players, to launch a national consultation. The goal: provide concrete answers from the general public and allow the industry to draw conclusions and find solutions on how to operate in a sustainable way. The consultation process is open until end of October. Organised by all the fashion councils in France, the analysis will be shared with the Ministry for the Ecological Transition and the Paris city council at the end of the year.

LAUNCH OF A NATIONAL COMMUNITY CONSULTATION PROCESS ON RESPONSIBLE FASHION

wwd: French Fashion Players Seek Public’s Input for Sustainability Matters

Go For Good

Galeries Lafayette has also kicked its sustainable fall initiatives in its Haussmann flagship and in BHV / Marais store. From 2 September to 11 October, the group celebrate responsible fashion through its Go For Good project initiated three years ago which advocates sustainable and transparent practices in fashion.

For the first time the operation hits the BHV / Marais department store (belonging to Galeries Lafayette group) with a special event called “Home Good Home” putting the spotlight on Go for Good certified home brands as well as on initiatives such as second hand market, repair services and recycling.

The Galeries Lafayette group reviews the impact of its strategy to promote responsible fashion

Seattle-based Nordstrom has launched a nationwide non-partisan voter participation initiative: Make Your Voice Heard. It aims to educate and make it easy for employees and customers to “make their voice heard”.  The initiative is organised in partnership with nonprofits When We All Vote and the National Urban League to help increase participation in upcoming elections, through virtual learning series, curbside voter registration and online resources related to the 2020 Census and voter registration, among others.

Saks Fifth Avenue has launched “Register to Vote at Saks” campaign at its NYC flagship store and online, in partnership with nonpartisan organizations HeadCount and Vote.org. Window displays call upon the community to take action and vote, and special booths inside the store will allow for customers to register to vote, complete absentee ballot applications and check their registration status.

Both Nordstrom and Saks are making election day (3 November) a paid holiday for employees and will arrange schedules of employees from stores and operations centers -which remain open- to make sure everyone can vote.

Other retailers, such as Walmart, Pantagonia or Levi’s, are making arrangements to ensure their employees get to the polls.

Saks Fifth Avenue Launches “Register to Vote at Saks”

Nordstrom Unveils Make Your Voice Heard - A Commitment to Voter Education and Participation

In parallel, Saks CEO Mark Metrick mentioned being ‘cautiously optimistic’ for fall, citing the relaunch of ww.saks.com and advanced clienteling effort. The last set of known figures for SFA is from Q3 2019, which showed a -1.7% sales decrease year on year.

WWD: Saks Fifth Avenue’s CEO On What’s Ahead

Saks Fifth Avenue CEO Mark Metrick is dismissing the concept of retail apocalypse: as retail is not done yet. However he reckons that department stores lost themselves along the way, from their beginning a hundred year ago when going to them was a day event for the customer. By being captive to the fashion cycle, department stores lost track with their customers: they were offering them collection as an inopportune moment, and the cost related to operations prevented investing into the experience itself. But Metrick reminds that department stores stand for fun, escapism, fashion and service, providing an experience well beyond transaction. The solutions he proposes are multiple: investing in supply chain innovation – to deliver products when needed -, in frictionless omnichannel experience – including a personalized customer experience-, and an outstanding experience.

Saks CEO: Department stores are struggling. Here's how to fix them

A short interview of Image & Communication Director Guillaume Houzé from Galeries Lafayette Group on sustainability and on the department store next challenges.

Video: Galeries Lafayette’s Guillaume Houzé on sustainability

Hong Kong has been hit hard with various political crisis, quasi total loss of mainland China tourists (from 65,1m a year in 2018) and the Covid-19 pandemic, which led to a significant decrease of luxury goods demand on the market, pushing some brands to even shutting down some of their stores. Now that the perspective of seeing back mainland China tourists is still quite blurred, brands start to address local customers, who are an entirely different breed: they spend half of their mainland Chinese counterparts, have different needs, tastes, ways of communicating and even language. By tapping the opportunity of e-commerce, which is less widely used than in mainland China, and having a purposeful and tactful one to one CRM approach, HK merchants see however a potential in addressing the local high net worths.

Luxury New focus is HK hight net locals

Apple is testing a new store format in California, in an existing location, called “Apple Express”, specially designed to address the social distancing needs. Easy online order pickups and genius bar appointments are facilitated, but casual shopping is not really possible there. It is also a good way to use the online presence to create a true omnichannel customer journey and therefore shorted the actual physical presence time instore… which is a good way to address the issues Apple has always had with the queues at the entrance of its stores. In short: a pandemic solution might be the purchase process of the future, helping those looking for a specific item already bought online or a service to jump out of the queue and be immediately served.

Apple’s Express Concept May Solve Problems Post-Pandemic As Well

Sports retailer Nike reported fiscal 2021 financial results for its first quarter ended August 31, 2020. Among others, it releases that:

• First quarter revenues are down 1%
• NIKE Brand digital sales increased 82%
• NIKE Direct sales were up 12%

John Donahoe, President and CEO of NIKE, Inc. said: ‘Our first quarter revenue performance was impacted by strong NIKE Brand digital growth of 82 percent, offset by lower revenue in our wholesale business and NIKE-owned stores.’

NIKE, Inc. Reports Fiscal 2021 First Quarter Results

Business of Fashion is compiling the lessons learnt post-covid, where the consumer behaviour has significantly changed. Initially for brands, such lessons are interesting to know also for retailers, as they apply to their customer too:

• No lies or negligence about actual delivery delay, this is important for trust building
• Customers are looking for value, and this does not mean uniquely a low price point
• Local shopping is key
• Make a choice between have and have-nots customers, in the wake of the mid-tier customers disappearance (this point is debatable)
• Create a community for your customers, online
• Use digital to make sure customers know what to expect when coming to you, especially in terms of stock availability

6 ways the pandemic has changed how people shopvvv

Nordstrom’s president of stores talks to WWD about how they are navigating Covi-19.

Nordstrom is expecting a 50-50 split in business between stores and digital by the end of the year. They are expecting similar constraints through to next spring, but there is too much uncertainty to make precise plans at this stage. A lot of effort is being directed at the stores:

• The Nordstrom anniversary sale will run from 19 August to 30 August
• Speed and convenience are key
• Nordstrom Rack and its website are doing well
• They will need even more experience in stores after Covid restrictions such as food, service, compelling assortments…
• Stores will become even more “third places” where people meet and connect
• Supply chains need to be ever more flexible to cope with changing patterns and trends
• There is a need to pay special attention to employees and the Nordstrom culture which runs the risk of deteriorating without physical contact

Jamie Nordstrom on Navigating Nordstrom Through COVID-19

British department store Selfridges is launching a new sustainable initiative called Project Earth, with plans to change the way we shop by 2025. It is based on three issues (quotes):

• Materials: Ensure the most environmentally impactful materials used throughout the business come from certified, sustainable sources by 2025
• Models: Pioneer new retail models and experiences, making Selfridges synonymous with circularity, including repair, resell, refill and rental
• Mindsets: Put longevity, creativity and sustainability at the heart of the business, and engage with teams, partners and customers to effect change

The retailer collaborated with more than 300 brands on exclusive collections, and Project Earth will supported by a programme of events and activities.

Press release: SELFRIDGES AMBITION TO CHANGE THE WAY WE SHOP

Website: SUSTAINABILITY COMMITMENTS FOR THE FUTURE

Website: SELFRIDGES PROJECT EARTH

British brand Burberry just opened a social retail store in Shenzhen, China in partnership with Tencent. The store is aimed at younger shoppers, especially Gen Z, that are both tech-savvy and luxury shoppers. The experience is centered around a custom WeChat mini-program that allows for customers to book in-store appointments and items to try on for example. The brand discovered that although most customer journeys for Millennials and Gen Z (the brand’s target customers) start on social media — particularly in China — they still want an in-store, experiential element that they then share online; and that 80% of its customers have used a digital touchpoint before they purchase.

full article: Burberry tests “social retail” in China’s tech capital

Department store Selfridges is partnering up again with fashion rental platform Hurr to launch its first-ever high-end fashion rental collection. The 100-piece curated selection, named the Selfridges Rental Collection, will be selected by the Selfridges team and includes over 40 brands.

"Taking the rental revolution to a whole new level, this pioneering move by Selfridges proves renting as a long term, sustainable part of their retail business and we are so happy to bring this to life through our rental service with Selfridges for the first time ever," HURR wrote on an Instagram post. The new service also contributes to Project Earth, a major sustainability initiative launched by Selfridges (read more here). The collection is available from 17 August 2020.

The London-based department store first collaborated with the rental platform back in February, when it hosted a HURR rental pop-up

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In a move to reinforce its ‘direct-to-consumer’ offense strategy, Nike will no longer sell to nine major wholesale accounts, including US department stores Belk and Dillard’s. Nike plans to ramp up investments in e-commerce and technology, as well as open up to 200 new smaller-format, digitally enabled stores. The brand said in a statement: “[…] As part of our recently announced Consumer Direct Acceleration strategy, we are doubling down on our approach with Nike digital and our owned stores, as well as a smaller number of strategic partners who share our vision to create a consistent, connected and modern shopping experience.

IADS Exclusive - Nike House of Innovation 002: what to learn from the retailer

Nike Will No Longer Sell to Zappos, Dillard’s & These Big Retailers

Japanese convenience-store chain Lawson is opening a series of prefabricated stores in China. The first will be in Nanjing. The concept reduces construction costs by 40% and allows for flexible growth. Around 10 stores are expected to be operational by the end of the year.

The stores, created in partnership with Panasonic, come in 2 sizes: the larger one is a little smaller than the standard 80m² minimart, while the smaller one is suitable for transit stations. They can easily be opened in areas of high foot traffic and offer an alternative to online shopping during the coronavirus health crisis.

Lawson operates 2700 outlets in China and has indicated that it will roll out the prefabricated stores in Japan in the future.

Following its acceleration in digital and customer knowledge due to the Coronavirus outbreak, and after having launched its e-commerce website, Beco is launching a new Personal Shopping service, aiming at better serving its customers. It is also a way for them to get around the specific Venezuelian lockdown system, with a week under lockdown every two weeks, which strongly affects the business. The new service launches on 1 September.

VIDEOS

In spite of bad omen birds, Wholesale is not dead, as it is part of the whole industry as it is built. However, it needs to reinvent itself and Fashionista provides a few examples of notable innovators on the market. Among them, Neighborhood Goods, a new Department Stores chain in the US (2 locations in Texas and one in NY) with a combination of experiential approach with a consignment business model. Traffic is generated thanks to their food popup and local communities bonds and initiatives.

Read full article below

Traditional wholesale isn’t working anymore, so what comes next?