What: John Lewis has partnered with The Little Loop to enter the childrenswear rental market.

Why is it important: John Lewis said the partnership will give parents access to the biggest wardrobe of rented kids' clothing in the UK.

Launching on Thursday, fifty-one products for babies to age 12 will be available, with special consideration for sustainable raw materials.

Clothes can be rented and swapped at any point, with customers receiving credit to use on future bundles. All returned items get professionally cleaned, and if needed mended, then are rented out again at a price that reflects their condition. Plans start at 18 pounds per month with customers able to rent 6 -7 products at a time.

John Lewis enters kidswear with The Little Loop

What: Shein is both customer-obsessed like Amazon, and data-obsessed like China. The combination lures customers and keeps them constantly engaged as well as operating with ruthless efficiency.

Why it is important: It demonstrates that low prices are as attractive as ever to young shoppers, even though surveys suggest that reducing their environmental footprint is a primary concern. And this is the result of formidable efficiency.

Shein the Chinese online fashion company is one of two Chinese firms to be valued at $100 bn or more (the other is ByteDance, TikTok’s owner). Its success is built on three elements:

• Supply chain: it taps into thousands of suppliers whom it pays on time generating trust. This in turn allows it to put in smaller orders. Last year Shein offered 1.3 million new styles compared to 35 000 at Zara and 25 000 at H&M. And prices were 40-60% cheaper.
• It connects suppliers together with its own software allowing updates, output adjustments, and detailed up-to-date knowledge of any market.
• Shein has become a master of “gamification”: customers browsing Shein’s app is like walking through a store with excitement, random discounts, micro-influencers and more.

In the first three months of 2022, Shein accounted for almost a third of fast fashion in the US, against H&M (17%) and Zara (10%).

Shein: fastest fashion online

What: In partnership with Skinney Medspa, Saks will offer botox, filler and Aquagold at its New York flagship.

Why is it important: Saks Fifth Avenue brings medical-grade services to its Manhattan flagship, with the program expected to roll out to Bal Harbour in Miami, and Houston.

Prices will start at USD300 per area for Botox, and filler starts at USD450 per half-syringe, although new clients are being offered USD50 off their first Botox treatments, and a limited-time launch offer knocks USD100 off the bill.

A report from the Aesthetic Society noted that non-surgical procedures using neurotoxins such as Botox numbered over 3.4 million last year in women, and over 155,000 in men. 41% of those procedures were in clients aged 36 to 50.

Saks joins a growing list of retailers driving trips with beauty services. Last year, Nordstrom introduced injectables to its Beauty Haven offerings in New York, in partnership with Dr. Dennis Gross, as well as HydraFacial facials and Cowshed body services.

Saks Fifth Avenue brings injectables in-store

What: Lindex owner Stockmann Group had a positive first quarter with clearly improved results across both divisions.

Why is it important: The company’s group revenue reached EUR196.1 million in the period to the end of March, up 27.1% at comparable currency rates, and the gross margin increased to 57.8% from 56.3%.

Operating profit swung to earnings of EUR9.8 million from a loss of EUR27.6 million a year ago, an improvement compared to the loss of EUR21.1 million in the previous year.

Lindex generated its strongest first-quarter sales and operating profit ever, due to increased sales in all channels and business areas. Sales in physical stores increased by 47.5% year-on-year, while digital sales, including both online and third-party sales, saw 8.2% growth.

And the Stockmann division achieved outstanding results, improving its adjusted operating result by EUR4.8 million to a loss of EUR7.3 million. The company stated that Q1 is usually negative for both divisions due to seasonal variation.

The division’s revenue grew by 9.2%. Sales in its stores increased because of higher visitor volumes and changed the balance between the sales channels. The stores generated 87.8% of its sales compared to 78.8% a year ago and the online store 12.2% compared to 21.2% of sales in Q1 last year.

Stockmann’s improving results, Lindex’s best-ever Q1 sales

What: Luxury fashion brands are amping up touch and texture in the pop-ups for their latest handbags.

Why is it important: Consumers need to be enticed back to physical retail and luxury fashion brands are doing just that.

Jacquemus’s previous pop-ups in Milan and Paris, one in white, the other in pink, both went viral on social media. Jacquemus has also occupied Selfridges Mews, located directly behind the Oxford Street store, positioning there its 24-hour vending machine that dispenses colourways of its top-selling Chiquiot and Bambino bags. At the Old Selfridges Hotel: Le Vestiaire is the title of an immersive experience that transports customers through a surrealist interpretation of a swimming pool and rooms with 3D sensory experiences.

Balenciaga has also taken the hyperphysical route. Last week, the brand opened pop-ups for the Le Cagole it-handbag in both London and Bangkok. The stores feature a joyous surfeit of shaggy pink faux fur that covers floor, walls, chairs and shelves.

Coach’s larger-than-life installation in central London this April, which was inspired by the puffy pillowy leather of its latest Pillow Tabby bag. And Mulberry is currently hosting a pop-up in Seoul to promote its new bag Softie. The space mimics the bag’s sensorial qualities, curved quilting that looks plush and squishy, with spongy furniture and decor that invites visitors to touch.

At a time when many consumers haven’t fully returned to real-life shopping, hyperphysical retail serves as a draw for younger consumers. Some 56% of global Gen Z shoppers head to physical stores for a fun experience, according to a 2018 survey by IBM and the National Retail Federation.

While e-commerce is accelerating to offer multi-layered experiences for customers and brands, bricks-and-mortar stores are becoming physical bastions of extraordinary, sensorial moments. Some luxury marketers see an opportunity to add ASMR triggers to physical experiences.

Sales don’t necessarily drive these sensorial pop-ups. The idea is to break the frontiers in the world of luxury so that all may feel welcome and have a great experience no matter what they do inside.

While pop-ups generate short-term traction, bigger long-term opportunities may be out there, such as turning retail stores into spaces with benefits. Dior’s new flagship in Paris where visitors can eat, sleep, wear and work out, is to position retail not as just shops but as venues.

Luxury fashion brands go hyperphysical

What: Saks Off 5th has remade its loyalty program in a bid to capture a wider audience, encourage repeat shopping and simplify the process of compiling and using points for purchases.

Why is it important: The new program reflects more aggressive marketing at the upscale off-pricer and greater awareness of what customers want.

Off 5th Rewards, launched Wednesday and was made to capture a wider audience, encourage repeat shopping, and simplify the process of compiling and using points for purchases. It’s tender-neutral, designed with a tiered structure that executives say is easy to understand, and replaces the “More” loyalty program that was phased out.

Through the tender neutral Off 5th Rewards program, customers earn points for every dollar spent at saksoff5th.com, on the Saks Off 5th mobile app, or at 100 Saks Off 5th stores, with points earned per dollar increasing with tier status. Once a customer accrues 500 points, they receive a USD 5 reward, redeemable in-store or online. They also get free shipping and access to members-only sales and events. The launch of the loyalty program is being supported through in-store and online marketing, including email, organic and paid social, display, and site advertising.

Saks Off 5th remade its loyalty program

What: Changi airport maximizes the opportunities to experience and feel, in order to become a destination per se.

Why it is important: An interesting feature is the giant slide, which is similar to what has been seen already at Showfields (US) which has made it an Instagrammable asset. The fact that to use it customers have to be holders of the loyalty card creates at the same time a sense of urgency to be member of the program, but also a sense of belonging and exclusivity.

Changi airport in Singapore has set up a calendar of activities aiming to make the place a destination in itself, instead of being a transit platform. For instance, in May 22, Changi offered a “night at the airport family camp” experience, which allowed families to camp in tents with air mattresses in the Changi Canopy Park.

Workshops are also available, and more interestingly, some features are designed to create a sense of belonging and exclusivity: in Terminal 3, a giant slide is available only to holders of the airport loyalty card, for a maximum of 10 rides a day. Tokens are not digital: they have to be redeemed at a counter where other products are also available for purchase.

Singapore airport goes big on entertainment and retail 

What: Neiman Marcus Group announced that as of Jan. 1, 2022, employees have been offered 16 weeks of paid leave for anyone welcoming a child, including via adoption, surrogacy, or foster care, and up to 24 weeks of paid maternity leave for birthing mothers. And as of Aug. 1, 2022, the new policy will also provide two weeks of paid leave to care for a child, spouse, partner, parent or other family member defined by the Family Medical Leave Act.

Why it is important: In the current labor market, businesses are searching for ways to attract and retain workers. Employers are developing enticements beyond wage hikes, which is now only one factor for people considering where to work.

Neiman Marcus is also offering those employed for at least 1 year USD 3,000 towards adoption to ease costs like placement, legal, or medical expenses.

As store associates and warehouse employees don’t have the luxury of working from home, retailers are offering other incentives such as tuition assistance and better leave benefits.

Neiman Marcus Group expands paid parental leave

What: Saks has launched the second year of its emerging designer accelerator programme, ‘The New Wave,’ featuring eight new brands.

Why is it important: The accelerator programme was launched last year to develop and support high-potential independent brands in accelerating their growth at the designer retailer, as well as across the fashion industry, with an emphasis on BIPOC talent.

Saks has selected six designers that are Black, Indigenous, or people of colour, as part of its diversity, equality, and inclusion roadmap to increase total sales of Black-owned, -designed, or -led brands by nearly 100 million US dollars by 2023.

Each designer taking part in the accelerator will be eligible to receive a 10,000 US dollars grant to support their business operations and growth, alongside dedicated marketing support from Saks. The retailer also added that the programme will also offer an onboarding bootcamp, cross-functional advisory sessions with leaders from across the Saks business, roundtable sessions with industry experts and designers and access to workshops to support brands with small business know-how.

Saks’ accelerator program ‘The New Wave’

What: Harrods is restricting Russian customers spending capacity.

Why it is important: According to The Telegraph, the famous Knightsbridge store has contacted Russian customers warning that it will no longer sell them “luxury goods” worth more than £300.

The move comes after Harrods has gone through its customer database, singling out those with a Russian phone number or who have said they live in the country.

The store sent an email to one wealthy Russian saying: “As you may be aware, the UK authorities have introduced further regulations as part of their ongoing sanctions against Russia which specifically target the sale of luxury goods. The regulations seek to prohibit the supply of many categories of luxury goods over certain values (generally £300) to individuals who are either currently or ordinarily in Russia.” The letter includes a link to the new regulations and encouraged the customer to “review them”.

Harrods sanctions high-spending Russian customers

What: Nordstorm is striving to provide customers with more convenient and interconnected digital and brick-and-mortar experiences.

Why is it important: Nordstrom Inc. continues to be focused and acts with urgency and sees strong evidence that its “Closer to You” strategy is working.

The agenda calls out the Rack off-price chain, the market strategy leveraging physical and digital assets to provide greater services and conveniences, and digital sales as Nordstrom’s biggest growth opportunities for the future.

Nordstrom will report its first-quarter results on May 26, but for the fourth quarter of last year the company showed progress in its strategic initiatives and efforts to recover from some merchandise and pricing misses of previous quarters, reporting a big boost in earnings to USD200 million from USD33 million in the year-ago period, while sales rose 23% to USD4.38 billion versus USD3.55 billion in the same period in fiscal 2020, and decreased 1 percent versus the same period in fiscal 2019.

For 2022, Nordstrom projects revenue growth, including retail sales and credit card revenues, of 5 to 7% versus fiscal 2021; earnings before interest and taxes of 5.6 to 6% of sales, and earnings per share of USD 3.15 to USD3.50, excluding the impact of share repurchase activity, if any.

Keeping Nordstrom focused

What: H&M is seeing if it can succeed where other mass retailers haven’t and make high-tech stores work.

Why is it important: At its COS brand, the company is rolling out a series of technological enhancements across its eleven US stores. They’ll include mirrors on the shop floor that recognise the product you’re holding and recommend items to pair with it. Fitting rooms will know which items you’ve brought in so you can easily request other sizes or colours. Customers will also be able to check out directly from the fitting room if they choose.

Shop associates, meanwhile, will have a real-time picture of inventory they can see on a tablet or other device. They’ll have full visibility into which products, in which sizes, are in the stock room or out on the selling floor, where they can also see how customers interact with them. They’ll know what inventory is available in other stores or warehouses where COS’ system is live, without having to pull it from a back-end inventory management system.

The aim of the technology is to better serve and engage shoppers, whether by suggesting other items they might like based on what they’ve been eyeing in the store or letting them know straight away if an item is available nearby or can be ordered online.

COS is cracking the code on high-tech stores

What: The online luxury platform significantly scaled back its expectations for sales in 2022, as the loss of its Russia business and other factors have taken a toll.

Why it is important: E-commerce companies of all sorts have faced an uphill climb lately as they’ve struggled to top the huge sales they recorded at the height of the pandemic surge last year. Many have seen their stock fall, including Farfetch, whose shares are down 77 percent this year.

Between Russia’s war in Ukraine, Covid lockdowns in China, and the removal of markdown inventory from partner brands pushing for more full-price sales as a factor hampering its business, the year is not shaping up as Farfetch expected.

The company said it now expects total merchandise sales on its digital platform to rise 5 percent to 10 percent above last year. When it gave its previous forecast at the end of February, it anticipated sales would rise 28 percent to 32 percent.

The company sought to reassure investors that growth in other important regions, such as the US, remained strong, however, and that it sees no general slowdown in online sales of luxury goods. While it currently has no plans to resume operations in Russia, it expects business in China to pick up as the country reopens.

Farfetch slashes its outlook for the year

What: Reliance is preparing to separate its e-commerce activities from its marketplace.

Why it is important: China has already enforced such a measure, and now India is moving forward. Is this a new legal measure that should be expected in the rest of the world too?

The Indian retail giant Reliance is moving accordingly to the new regulations the Indian government is setting up, as it seeks to prohibit marketplace operators to have their related parties or associated enterprises as sellers on their platforms. As a consequence, Reliance’s platform, JioMart, is encouraging third-party sellers to join a specific part of its structure which is expected to separate at some stage.

Even though the branding remains to be defined, the new platform will be parallel to JioMart which will keep on being the retail arm of Reliance Retail and will offer categories of products that JioMart does not include.

Reliance to build separate online marketplace for third-party sellers 

What: The 17th iteration of the retailer’s concepts at Nordstrom is a multibrand shop it’s calling Sports.

Why is it important: The space features apparel, footwear, and accessories for golf, tennis, running, training, and cycling inspired by nostalgic sportswear. Five of the 16 brands of men’s and women’s ready-to-wear, shoes and accessories will be available at Nordstrom for the first time. Prices will range from USD7 to USD500.

To promote the shop, Nordstrom produced a campaign featuring a cast of real-life athletes, including tennis player Jordaan Ashley, runner Chris Focus, golfer Hayden Sylte and cyclist Ron Holden.

Concept 017: Sports! will launch May 12 and remain in place through the end of July online and at 13 Nordstrom stores around the U.S., including the men’s store in New York and the Seattle flagship.

Nordstrom’s new sports-inspired pop-up

What: Neiman Marcus Group intends to make an impact on environmental issues across its entire value chain.

Why is it important: In 2021, Ne4iman Marcus worked with merchants to set some preferred attributes and build those into its product management software system with the goal of increasing revenue from sustainable and ethical products.

Circular services with services like alterations and restoration being offered to extend the lives of loved luxury items have also seen a notable expansion in recent years. In 2015, NMG piloted a partnership with The RealReal, followed by an initiative to work with Rent the Runway in 2017. Most recently, NMG has become the first luxury retailer to make a long-term equity investment in resale with Fashionphile.

In further alignment with its customers’ asks, NMG has also made progress in its commitment to go fur-free by 2023, and is working with brand partners to increase revenue from the sale of sustainable and ethical products by 2025.

One brand partner NMG has created a relationship with is Prota Fiori, the luxury footwear company that uses sustainable leather alternatives to manufacture footwear. The brand’s mission is to preserve a connection between craftsmanship and sustainability.

Neiman Marcus Group is leveraging partnerships for greater ESG impact

What: JD.com Inc, beat Wall Street estimates for quarterly revenue on Tuesday, as more people shopped on its e-commerce platform following lockdowns in mainland China to fight a fresh Covid-19 outbreak.

Why is it important: The company reported revenue of 239.66 billion yuan for the quarter ended March 31, compared to analysts’ estimates of 236.66 billion yuan, according to IBES data from Refinitiv.

Net loss attributable to ordinary shareholders stood at 2.99 billion yuan, compared with a profit of 3.62 billion yuan a year earlier.

JD.com beats quarterly revenue estimates 

What: Backstage launches on the 8th floor of Macy’s Herald Square, furthering the footprint of Macy’s burgeoning off-price format.

Why it is important: Backstage is growing rapidly. From April through June this year, Macy’s is bringing Backstage off-price departments to 37 of its department stores, so by the end of June, Backstage will be inside 300 Macy’s stores across the country. Last year, Macy’s brought Backstage into 45 of its department stores.

In Herald Square, Backstage has taken more than 15,000 square feet of space on the eighth floor. It feels like a store within a store, with its own entranceway; distinct blue and white signage and myriad T-stands on wheels for flexibility with the merchandising and display.

The off-price sector is among the most consistently profitable in retail, and actually growing in appeal in light of soaring inflation and consumers being desperate to save money by bargain hunting. Backstage is part of Macy’s efforts to diversify its brick-and-mortar portfolio, from being mall-based with large department stores to also having a significant off-mall presence by layering in smaller, specialized formats such as Market by Macy’s, Bloomingdale’s The Outlet and Bloomie’s.

Backstage departments range in size anywhere from 11,000 to 18,000 square feet. Eighteen percent of those visiting Backstage also visit the full-line departments at Macy’s, and spend 29% more.

Macy’s Backstage opens at NYC Herald Square flagship 

What: Hong Kong’s retail sales plummeted 13.8% in March due to the string of heavy virus restrictions.

Why it is important: The February-March period was the first time since the end of 2020-into-2021 that retail sales declined for two straight months.

The city has recently imposed strict social curbs — including a ban on dining in restaurants after 6 p.m. and closing gyms and beauty salons — to contain a deadly Covid outbreak.

Things are now looking up for Hong Kong, which is accelerating plans to ease curbs by reopening beaches and swimming pools and extending dining in-hours, among other measures.

The government has started handing out consumption vouchers to help growth. A similar program last year helped boost monthly retail sales by double digits.

The damage to the economy in the first quarter was still far deeper than many economists anticipated, suggesting a potentially lengthy road to recovery.

Hong Kong’s retail sales continue to fall

What: Harrods has finally appointed its first chief financial officer in five years.

Why is it important: Tim Parker will join the business after 10 years at Hong Kong-based, London-listed conglomerate Jardine Matheson.Parker’s knowledge of international markets will help with Harrods growth initiatives which include boosting its presence in China and the Middle East.

Harrods names new finance chief 

What: After such success of its pop-up concept store, Gate Zero, Highsnobiety has signed a joint venture deal with travel retail giant Gebr Heinemann with the goal of opening permanent stores at airports.

Why is it important: The store, currently being tested via a pop-up in the Zurich airport, carries products from over 15 luxury fashion brands not usually seen in duty-free shops, which are typically a mix of big brand-heavy beauty, handbags, and fragrances.

The business will be largely concessions-based with a mix of wholesale for smaller labels.

The rethink on travel retail comes as the channel struggles to return to pre-Covid levels with big spenders like Chinese tourists and business travelers still limited. To thrive in the coming decade, brands and retailers need to change not only how they sell but what they sell.

Highsnobiety and Heinemann’s goal is to scale the Gate Zero business internationally, starting with a first retail permanent space in Copenhagen’s Kastrup International Airport on 13 May.

Highsnobiety’s strengths lie in curation and merchandising, apparent in Zurich’s store retail success, noting that bestsellers include sneaker collaborations such as Comme des Garçons and Converse, Acne Studios scarves and beanies, and Byredo and Aesop beauty products.

Highsnobiety has also produced souvenirs like hoodies, T-shirts, caps and tote bags designed specifically for the Zurich airport.

Gate Zero bringing trendy brands to airport malls

What: In a surprise move, Belk has to find a replacement to its brand new CEO.

Why it is important: Investors are more nervous than ever when it comes to traditional retail companies, and expect leaders to make visible and fast decisions just after being appointed.

Nir Patel resigned from the Belt CEO position after having been promoted from his former job of Chief Merchandising Officer, to pursue other interests. The president, Don Hendricks, is taking the interim until a replacement has been found.

Patel was expected to change the whole company after emerging from bankruptcy a year ago, but according to experts, not much has happened: no new products, new offering or sales channel.

Belk, a 134-year-old company, has 300 stores in 16 US states, mainly in the South.

Belk CEO steps down less than a year after taking the job 

What: The leader of buy now pay later services is accelerating in finding additional features to overcome the difficulties currently encountered on this market (hampered by inflation and fear of rising prices).

Why it is important: It is yet another service already offered by other operators, and forcing retailers to include a new platform in their systems. While this offer might be interesting for smaller scale retailers, not sure that this feature is of interest for department stores provided they are already advanced enough in their omnichannel development.

Klarna is launching a virtual shopping service for its customers, connecting them to experts in physical stores through live video and messaging. This officially aims to empower retailers to create immersive experiences and increase customer engagement.

The program already includes 300+ brands, and Klarna wants to offer this service to 800,000 retailers. It is currently available in 18 markets, including the US, UK and most of Europe.

Klarna launches virtual shopping 

What: The Chinese e-retailer has noticed that sales growth slowing from the beginning of the pandemic, just as it faces mounting pressure to live up to a $100 billion valuation.

Why it is important: While revenue last year was overall in line with company expectations, what is concerning for the top executives is that expansion was strong in the first half of the year but decelerated at a worse-than-expected pace in the second half, with the slowdown continuing into 2022.

Shein saw annual sales growth slow to around 60 percent in 2021 which is a drastic change from the significant 250 percent growth in 2020, when the arrival of Covid-19 turbocharged e-commerce demand from consumers stuck at home.

The deceleration also comes as the company gets caught between the polar opposite pandemic approaches of the US and China. While life in America normalises to pre-Covid norms and shoppers venture out more, China’s rolling Covid lockdowns as the country continues to try and stamp out all infection.

Shein's difficulty in maintaining high growth reflects a wider problem for China's cross-border e-commerce sector, which in 2020 outpaced traditional exporters to grow by 40% thanks to tax breaks and Western consumer demand. Last year, growth slowed to 24.5%.

Shein’s growth slows