What: The online retailer struggles to build off the dramatic gains it made early in the pandemic. Revenue will be USD $116 billion to USD $121 billion in the period ending in June, Amazon said in a statement.

Why it is important: That’s the slowest pace of growth since 2001, and marks the first time Amazon has ever recorded back-to-back quarters of less than 10% revenue growth.

Amazon has been grappling with rising energy and labor costs and changing shopping habits as people return to pre-pandemic activities. Despite those pressures, Wall Street analysts have been nearly unanimous in their optimism about Amazon’s prospects, citing the company’s massive investments in package handling and delivery capacity and continued growth in its highly profitable cloud-computing and advertising businesses.

The company also reported a net loss of USD $3.8 billion, or USD $7.56 a share, compared with profit of USD $8.1 billion, or USD $15.79 a share, in the period a year ago.

Amazon projects slower growth

What: The Dutch retailer is cutting down on products with the goal to sell less but more qualitative and sustainable products.

Why it is important: This is also a perfect opportunity to maximize synergies with the owner of the group, Jumbo, who bought Hema in 2020.

Dutch retailer Hema is going through the second corporate reorganization in three years, following the appointment of a new CEO, Saska Egas Reparaz, a year ago.

The new plan involves cutting down 100 jobs at the headquarter in Amsterdam, with 40 people made redundant and the rest moved to another department or position. This follows the exit of the UK and Spanish markets, and also the desire to remove management layers and simplify the organization.

In addition, the product range will be reduced, with 200 products reviewed. Hema is exiting entirely the food and drink market by closing the category.

However, less is more: Hema plans to sell less products but of higher quality, invest in its shop experience and its operations sustainability.

Hema cuts down on jobs and product offer 

What: The Chelsea store was a laboratory for Google in order to venture into retail. Now they are rolling over the plan.

Why it is important: The strategy appears to be to cover territories via low-scale but service-full hubs, just like what Nordstrom is doing with Nordstrom local. For now, no information has been released about a potential expansion to Europe.

Google has announced the opening of a new store in Brooklyn, one year after the opening of the Chelsea store in New York. This is the first of a new breed, called “neighborhood stores”, aiming to offer similar experiences as in the flagship store, but in a more intimate setting.

The store features art installations from local artists, a Here to Help desk (a feature that was appreciated in the Chelsea store), and the possibility to test products on site, in addition to a grab and go service.

Google is expanding "neighborhood stores” 

What: According to a survey conducted by ThredUp, the global secondhand goods market is expected to grow by 24% in 2022.

Why it is important: Re-commerce companies, including The RealReal, Poshmark and ThredUp, are expected to comprise 18% of the clothing industry by 2031.

According to a new ThredUp survey of 3,500 U.S. adult consumers and 50 fashion retailers conducted by GlobalData, it is estimated that the U.S. secondhand market will more than double by 2026, reaching $82 billion.

Sixty-two percent of Gen Z and millennial consumers said they look for items secondhand before buying new. And almost half of Gen Z and millennial consumers (46%) consider the potential resale value of an item before purchasing it, per the report.

Secondhand goods are also seen as a way people can stretch their dollar further. Fifty-eight percent of shoppers say that resale has helped them in some way during a time of inflation.

Secondhand US market to reach $82B by 2026: ThredUp

What: Amazon's new 30,000-square-foot store is powered with technology and experiments with algorithms and apps to make shopping easier.

Why it is important: The first Amazon Style store, which opened at the Americana at Brand shopping center outside of Los Angeles, makes perusing for clothes and accessories more like an online experience but with the ability to touch, feel and try on the product.

The store displays racks of men’s and women’s clothing and shelves of shoes, jewelry and beauty products, but there is not more than one sample of an item on the rack or shelf.

From the time a customer enters the store to the time they exit, they can shop with the Amazon app, which helps personalize their buying experience and makes shopping easier by programming in their size and fashion preferences as well as their credit card number for easy checkout.

When a shopper sees something interesting, they take their smartphone app to read the QR code on the tag. Up pops a list of sizes and colors stored in the back, which can be sent to their personalized dressing room or to the cashier. They can keep shopping until they want to try on their selections, which have been placed in a fitting room whose number pops up on their screen when they indicate they are ready. They can take their app to unlock the fitting room, and they’re ready to try on clothes. If not happy with your size or color selection, customers can tap a fitting room screen and a store employee will deliver more sizes and colors to a locked closet attached to the room. Once done shopping, the shopper can take the items to the check-out area, scan the QR code and pay with the credit card filed on their app or with another credit card, cash or a check.

If they are not into spending much time in the store, they can also shop online at Amazon.com, have their box shipped to the store and then try on those items. If they don’t like what they bought, a store employee will take care of returns. For those who don’t want to download the app, they can shop the old-fashioned way with the help of a store employee.

Merchandise on the store floor is also displayed differently. There is a section where outfits have been selected by various influencers to give them an idea of what is trendy. There is also a section for premium brands, including Vince, Theory, Equipment and Rebecca Taylor as well as a section for popular brands including Calvin Klein, Levi’s and Lacoste. Amazon’s own brands are also for sale, but currently don’t make up the majority of items on the floor.

With that in mind, there is a section called “Sales & Deals.” A consumer can scan the QR code and find what is on sale in the store, with personalized items listed too.

Amazon Style is open 

What: Target revealed earnings, increasing top-line revenues but falling short on profits due to continued pandemic-related headwinds.

Why is it important: Total revenues for the three-month period ending April 30, were USD25.1 billion, up from USD24.1 billion a year ago. Comparable sales grew 3.3% during the quarter, year-over-year, on top of 22.9% growth last year, while guest traffic rose 3.9% during the quarter, thanks to strength in food and beverage, beauty, and household essentials. Same-day services, which include buying online, pick up in stores, drive-up, and Target’s delivery service Shipt, accounted for more than half of digital sales growth.

Excess inventory and higher freight and transportation costs lead to reduced earnings per share. Target’s first-quarter GAAP earnings per share fell 48.2% to USD2.16, down from USD4.17 the same time last year. The company logged just over $1 billion in profits, as a result, down from USD2.09 billion during 2021’s first quarter.

Target ended the quarter with 1,933 stores, in addition to its e-commerce business, USD1.1 billion in cash and cash equivalents, and roughly USD13.3 billion in long-term debt.

Target’s declining profits

What: Coca-Cola has opened its first European flagship store in London where fashion and experiences will share the limelight.

Why is it important: The all-new “fashion hub” is in Covent Garden and is the first of its kind in Europe, offering a range of limited-edition fashion collections and exclusive designer collaborations, plus gift items alongside unique drinks creations.

The London store features exclusive clothing collections that include sportswear, workwear, and a sustainable apparel and accessories collection made from recycled plastic.

In addition to a wide range of fashion accessories, the store's assortment includes limited-edition collectibles and special collections, such as for Pride in June.

Coca-Cola opens fashion hub store in London

What: Retaildetail reviews the changes taking place within Inno and questions the lack of radicality in the decisions made.

Why it is important: Inno is a household name in Belgium but no company is too big to fail anymore in retail.

Inno from Belgium has been founded in 1897 under the name “A L’Innovation” and was a pioneer in Europe for this retail format (A l’Innovation is a founding member of the IADS). The celebration of its 125th year of existence is turbulent: due to cash issues, the company had to put half of the staff on temporary unemployment a few weeks ago, and even though they are back in stores now, the malaise is here. The company belongs to Galeria Kaufhof.

A new CEO, Armin Devender, took office in 2019 with a clear plan:

• Rejuvenation of the stores both from a physical perspective and in terms of brand and product assortment,
• A higher brand positioning, leading to a full rebranding of the company,
• More room for food and catering, including partnerships with F&B companies such as lunch chain BON,
• The launch of an e-commerce cum marketplace website.

However the article questions the speed of changes implemented within the company. Short of cash and without much time ahead, it seems that Inno should be making more radical choices, just like what other department store companies such as Galeries Lafayette have done by transferring the property of their stores to other companies.

Is Inno ready for the next 125 years? 

What: Macy’s, Inc. reported financial results for the first quarter of 2022 and updated its annual guidance.

Why is it important: Diluted earnings per share of USD0.98 and adjusted diluted earnings per share of USD1.08. This compares to diluted earnings per share of USD0.32 and adjusted diluted earnings per share of USD0.39.

Comparable sales were up 12.8% on an owned basis and up 12.4% on an owned-plus-licensed basis. Digital sales increased 2% year-over-year while increasing 34% versus the first quarter of 2019. Digital penetration was 33% of net sales, a 4-percentage point decline from the first quarter of 2021, but a 9-percentage point improvement over the first quarter of 2019.

Macy’s comparable sales were up 10.7% on an owned basis and up 10.1%, on an owned-plus-licensed basis.

Star Rewards program members made up approximately 69% of the total Macy's brand owned-plus-licensed sales on a trailing twelve-month basis, up approximately 6 percentage points versus the prior year.

Consumer shopping behaviors shifted during the quarter to more occasion-based apparel. As a result, dresses, women’s shoes, accessories, and men’s tailored had strong sales performance.

Bloomingdale’s comparable sales on an owned basis were up 28.1% and on an owned-plus-licensed basis were up 26.9%. Bluemercury comparable sales were up 25.2% on an owned and owned-plus-licensed basis.

Gross margin for the quarter was 39.6%, up from 38.6% in the first quarter of 2021.

Macy’s, Inc. Reports First Quarter 2022 Results

What: The German online fashion retailer’s first-quarter sales fell by 1.5 percent , to EUR 2.2 billion (USD 2.33 billion), after posting a 46.8 percent increase in the same quarter last year thanks to the coronavirus pandemic.

Why it is important: As pandemic restrictions have eased, people are returning to in-store shopping, which is why online retailers like Zalanso are only able to increase their number of customers slightly.

Zalando now sees 2022 sales growth coming in at the lower end of the forecast range. For the three months from January to March, the company reported an adjusted operating loss of almost EUR 52 million, compared with a year-earlier profit of EUR 93 million.

“The main issue is that people just aren’t into buying fashion,” said co-chief executive officer Robert Gentz with a view to high inflation and the war in Ukraine.

Zalando has posted a decline in sales for the first time since being founded

What: Paris is slowly returning to its pre-pandemic touristic activity.

Why it is important: Paris department stores and other touristic players have ween waiting for such news for months. It might also trickle down to the rest of the country and Europe as Paris can also be an entry door for many tourists looking to stay longer and to have a variety of experiences.

Paris tourism is bouncing back: the city is the second-most sought-after destination worldwide this year after London,  (Prepandemic, Paris held the first place, and during the Covid-19 pandemic, it was relegated at the seventh position). Hotel revenue is currently up 20% compared to the past weeks and occupancy is on par with May 2019 at 80-90%.

It is expected that the trend should follow, and this will be a welcomed relief for the country, as the tourism industry represents 7% of the total economy.

Paris tourism rebounds thanks to Europeans and Americans 

What: An English retail expert advocates for a complete review of the retail portfolio in the UK.

Why it is important:  If such a reassessment was to be done, that might be an opportunity for English department stores to become central again, after a four decades old of competing with brands’ retail networks.

Sir John Timpson, owner of the UK shoe repair chain Timpson and member of the UK government’s high street experts panel, advocates that the high street retail scene is still too crowded in the country, and not diversified enough.

For him, the whole property portfolio needs to be reviewed and reassessed, even if this means that high street retail leaves room to other types of activities, such as leisure, entertainment, hospitality or medical services.

He appeals to the government to make decisions and new regulations, and believes that such a situation is the natural consequence of the appearance of supermarkets, retail parks and e-commerce, badly hitting city centres.

Is the UK about to downsizing the number of high street retail units? 

What: Century 21 is making a New York City comeback, to the very same flagship location on Cortlandt Street across from the World Trade Center in lower Manhattan

Why is it important: The reopening of what was one of the city’s most popular and productive retail destinations will happen sometime in spring 2023. Century 21 went bankrupt and liquidated its flagship and all its other stores in 2020.

The revived flagship will be a streamlined version of the original, and will be running with the assistance of Legends, a company that oversees retail and hospitality operations at landmark establishments, including in New York the MLB flagship on Sixth Avenue; Yankee Stadium, and One World Observatory. It has also been behind the operations of such events as the 2012 and 2016 Olympics.

The revived flagship will have about 100,000 square feet over four floors, three less than the old flagship, which occupied about 200,000 square feet over seven levels. It will be focused on men’s, women’s, and kids’ apparel, outerwear, and accessories; handbags; footwear; sunglasses, and fragrances.

Century 21 is returning to downtown NYC

What: Shinsegae International reported a first-quarter net profit of 26.8 billion won ($21 million), up 13.3 percent from a year earlier.

Why it is important: The company said in a regulatory filing that it posted 33.1 billion won in operating profit for the quarter, compared with 21.3 billion won a year ago. Revenue rose 3 percent to 352.2 billion won.

Shinsegae International Q1 results

What: Leading luxury names are joining a group of UK businesses to support employment charity Refuaid helping refugees from Ukraine.

Why is it important: Harrods and Mulberry are among the latest supporters of the UK Ukraine Business Consortium Network. The companies involved will each sponsor a set number of refugees through Refuaid’s education and employment programme.

The consortium is hoping to create long-term infrastructure to benefit any refugees coming to the UK. In the three years since its foundation, Refuaid has supported over 800 people with access to language tuition, finance, and employment.

Harrods supports Ukraine refugee scheme

What: Magazine Luiza SA reported net revenue of USD 1.7 billion in the first quarter of 2022, up 6.2% year-on-year, signaling a return to growth after a decline of 6.6% in the previous quarter.

Why is it important: Total sales in Q1 2022 were up 13.2% to USD14.12 billion compared to USD12.47 billion in the same period last year. The result can be largely attributed to the recovery of physical store sales, which grew 6% to USD4 billion, and the company’s sustained e-commerce business. The latter reached USD10 billion, representing a 10% increase year-on-year.

Brazilian magazine Luiza returns to growth

What: Le Bon Marché transforms its alleys into a holiday camp and celebrates sunny days with a new highlight called "Un air d'été", which gives pride of place to nomadic adventures and song.

Why is it important: Le Bon Marché focuses on its French roots by joining forces with the Breton music festival Les Vieilles Charrues, which celebrates its 30th anniversary this year.

Since April 30 and until June 19, the point of sale has played it bohemian and camping chic by hosting a series of pop-up stores and exclusive products steeped in this theme.

The Céline house offers a beach corner entitled "Plein Soleil", the Brazilian label Farm Rio reveals its colorful and gipsy universe, while the clothes of the Antik Batik camp advocate "a return to the roots.”

On the music side, in partnership with the festival to be held from July 14 to 17 in Carhaix, a series of free mini-concerts are organized every Tuesday evening for seven weeks. Le Bon Marché is continuing its event strategy there to stage its sales area while preparing for the start of the school year with an immersive live show, “Au Bonheur des Dames".

Le Bon Marché celebrates sunny days with the Vieilles Charrues

What: Lotte opens its first location in Australia after not having opened any international store in 2 years.

Why it is important: Now that airports are crammed with operators, Lotte seems to export the very Asian concept of city centre duty free stores. In Europe, only one location (Venice) has such a feature. Could that be a new threat to department stores in iconic locations?

South Korean travel retailer Lotte Duty Free has opened its first store in Sydney, on a total surface of 3,200 square metres and 3 levels, at the heart of the retail precinct. Lotte has not opened a new store outside of South Korea since 2020 with its Singapore Changi Airport location.

Lotte plans to become largest Australia duty-free store operator with a turnover target of AUD $790mn (the total Australian duty free market was valued at AUD $800mn pre-Covid).

Instead of having opened in the airport itself, where Heinemann has the main retail concession, the city centre duty free store has been thought to be a destination per se, therefore with an inviting concept and with the target to be seen as a regular store by local customers too. To sustain that approach, Lotte is introducing brands that are new to the Australian market.

Lotte resumes global growth with first steps in Australia 

What: Shein releases a new collection which ticks all the boxes of respectability: sustainable, responsible and socially committed.

Why it is important: Shein has been massively criticized for its opacity and environmental impact. This new collection shows that they are addressing these criticisms seriously, even though the size of the collection (1,500 at the end of September) is quite small compared to the usual business at Shein (6,000 new products per day).

Shein has announced the launch of evoluShein, a purpose-driven collection available worldwide online at the end of April. This line includes inclusive sizing, responsibly sourced materials and supports women’s empowerment.

The line is also connected to Vital Voices, an international non-profit organization investing in women leaders addressing gender-based violence, climate crisis and economic inequalities.

The first capsule includes recycled polyester used from plastic waste, which uses less water and energy than virgin polyester and Shein aims to use evoluShein as a laboratory to test new sustainable ideas and processes before rolling them over for the regular Shein products.

Shein envisions a total collection of 1,500 SKUs for evoluShein within September 2022. For memory, Shein releases 6,000 new products per week.

Shein unveils a purpose-led range 

What: US department stores are increasingly leaving malls and opening smaller units in local communities.

Why it is important: This is a global trend with most of the largest players in the department store business making experiments on their own (Galeries Lafayette, Falabella and others).

Following Nordstrom and Bloomingdale’s examples of smaller stores with fewer products and more digital services to cater for local communities needs, Macy’s has opened five Market by Macy’s locations over the past 2 years in Texas. Those stores span over a total surface comprised between 2,200 sqm and 5,800 sqm, a fifth of the average Macy’s store surface.

During Q4 2021 sales in these units surpassed Macy’s expectations, and the group plans to open 10 off-mall locations this year, including some Market by Macy’s units, in addition to Macy’s Backstage (off-price), Bloomie’s and Bloomingdale’s outlets.

Macy’s is accelerating on the smaller store format 

What: The global Thai operator is renewing with growth on all three markets.

Why it is important: Vietnam and Thailand are widely reported in the article, however no detail is given about Italy. During our meeting with Coin (La Rinascente competitor) in March, the picture in Italy was not as rosy as the article suggests.

Central Retail has reported improved sales across its 3 global markets during Q1 2022, leading a group sales raise of +16%, to USD 1,6bn and USD 38mn net profit.

Omnichannel has increased +44% during the last quarter 2021, and the group has plans for expansion on all three markets.

Central Retail reports growth in Thailand, Vietnam and Italy 

What: Lotte is falling victim of strong geopolitical forces.

Why it is important: China is a demanding market both in terms of the size of needed investments, but also in dealing with political demands.

South Korea’s largest retailer is finalizing its Chinese exit by closing down its HQ in the country in the second half of the year.

Even though the group is looking at many opportunities in South East Asia (such as Vietnam or Australia, where a duty-free store was recently opened), it started to gradually close down its 130 stores in China due to geopolitical tensions and customer boycott movements.

Lotte is finalizing its China exit 

What: Hospitality is following suit to retail and monetizes the customer data it can gather.

Why it is important: Media Network is not anymore limited to retail: any significant player in the world with enough transaction points with customers can enter the game. As a consequence, retailers will need to make sure that their brand is clear and attractive to advertisers to stand out.

The American hotel chain Marriott has decided to launch into Media Network with the support of Yahoo, offering to advertisers the possibility to reach targeted customers through its apps, websites and room TVs. Anonymized customer data from past searches and reservations will be used to enable brands to display ads relevant to travelers. However, customer or loyalty member data should not be used.

Yahoo will be a supporting partner for the technological part. This move is a direct consequence of Apple’s privacy efforts, which has pushed the whole industry to question how to use first party data and monetize it.

Marriott to debut Ad Network 

What: Walmart is testing a new delivery method in Arkansas with a smart box system.

Why it is important: Displays of innovation are an efficient way to be visible and improve the perception of the company potential investors could have. This delivery method seems hardly scalable or financially sustainable, however it is presented as a true innovation.

Walmart uses HomeValet’s temperature-controlled smart boxes to make a trial and deliver groceries contact-free during the whole day. The box includes a freezer, a fridge and a dry storage, and opens with a one-time code for associates, and a permanent one for home owners.

The set up is currently being tested and Arkansas and could roll out in other states if there is interest from customers.

Walmart tries smart box for home delivery