What: Patrice Wagner on the exclusive exhibitions that Le Bon Marché is famous for in Paris.

Why it is important: For him, collaborations are not about prices or “milking” high end brands, but a part of the physical retail experience.

Patrice Wagner reflects on the current exhibition at Le Bon Marché, Exhibition X, which fosters exclusive collaborations between Le Bon Marché and its brands. For him, collaborations are crucial in retail because they can bring fun and when properly executed on site, are without comparison with digital experiences.

Patrice Wagner interview 

What: As part of Metaverse Fashion Week, Selfridges has unveiled a virtual department store in Decentraland.

Why it is important: Selfridges joins more than 70 brands, artists, and designers in creating a new experience, intersecting fashion and technology.

In a LinkedIn post, Selfridges said: “For the first time, you'll be able to view the exclusive UNIVERSE NFTs by Paco Rabanne and Fondation Vasarely in-situ in our flagship metaverse store.”

It added: “This is the first meta department store in the history of Web3 and anybody can visit. Interact as a guest or attach your crypto wallet to access all features, while keeping your in-world progress and digital assets safe.”

Selfridges launches ‘first meta department store in history of Web3’

What: Printemps has launched its first virtual store and NFT operation for its customers in partnership with Arianee.

Why it is important: Arianee is the leading web3 solutions platform for brands and is known for its previous collaboration with Paris Fashion Week and the Richemont Group.

This operation, running for the next 6 weeks, is realized in partnership with Arianee. Any customer who purchases a product eligible for the NFT selection on the Printemps virtual store can be drawn to win one of thirty NFT artworks by self-taught French artist Romain Froquet.

Each NFT contains a unique, animated digital artwork that is accessible from a link in an email sent by Printemps to the lucky winners. At the end of the 6-week period, a final winner will be drawn to receive the artwork in its physical form.

Arianee Press Release (in French)

What: Stockmann announced it will divest its department store in the heart of Helsinki to Keva, the leading pension provider for public sector employees in Finland.

Why it is important: Stockmann will use the proceeds of the divestment to fully repay the over 342 million euros in secured restructuring debt and almost 22 million euros in unsecured restructuring debt.

Stockmann will continue operating in the property under a long-term leaseback agreement signed as part of the sale.

Keva will pay the bulk of the price, over 390 million euros, in connection with the transaction and take the remainder into account in rent in the next couple of years. The transaction is expected to be closed by the end of April.

Stockmann sells iconic department store for EUR 400m to pay off debt

What: Aldi opens a one-of-a-kind store dedicated to its own brand.

Why it is important: Brand building and advertising is key for retailers if they want to remain attractive to customers and make them fell they are part of a community.

Aldi  has opened “Checkpoint Aldi” in Berlin city centre to sell exclusive Aldi-branded merchandise for hardcore fans. It is located a few minutes away from Checkpoint Charlie and uses the space to do some brand building with Aldi and give facts and figures about the company. It provides exclusive T-shirts, umbrellas, mugs, caps on 650 sqm and aims to become a touristic attraction in Berlin.

Aldi becomes a tourist attraction in Berlin 

What: After seven years as Group's Director of Operations at Galeries Lafayette, Olivier Bron is CEO of Central and Robinson's department store network in Thailand.

Why it is important: Besides acknowledging the fact that the department store model must reinvent itself, Olivier Bron explains the challenges his store network is facing. Competing with digital penetration, adapting department stores to new forms of consumption such as social commerce, and differentiating boosted services and experiences are key.

About the future of department stores

Whether in Europe or Asia the observation is the same: the department store model must reinvent itself. However, the Thai middle class is growing and the potential is great for the department stores. One of the main challenges is that international competition as well as the digital penetration are becoming stronger.

About the differences with the European market in terms of digital

The consumption via social networks is much more developed than in Europe. There are also very big online aggressive players with marketplaces like Zalada. The challenge is to update department stores to adapt them to new forms of consumption such as social commerce.

Also, consumers in South Asia are highly educated about discounts and promotions: the weight of gamification is very important, and the approach is often very sophisticated. Coupon collection and gambling are very important. With 85% of Central’s customers having a loyalty card, the influence of data is even bigger.

Behaviour evolution is going very fast with 20% of 25-50 year-olds having cryptocurrencies. A huge difference with Europe is also that 75% of digital activity goes through the app: it is more a service in which it is possible to buy than a direct path to purchase. “We have seen a 70% growth in our sales through this channel and we have doubled our sales through social commerce.”

About the differences in the product offer

European department stores have tended to organize their offer around fashion. In Asia, the categories are more balanced with a greater importance of home and living products, household appliance, and beauty.

In the fashion segment, there is a very affluent clientele that is very savvy about luxury products. Such customers are interested in major international brands and French luxury brands already have strong recognition. But they are also waiting for local brands to develop.

About the absence of Chinese tourists 

Chinese tourists did not return. Some Europeans are coming back but it is not like before. The traffic drops are significant. Under such circumstances, experience and service must bring differentiation: in Thailand, personal shopping strengthened the activity by 25 to 35%. Catering is also generating traffic.

Now 15% of the surfaces that are dedicated to services: rather than reducing store sizes, spaces are reallocated to complementary offerings. There is a big risk that below a certain size of store, department stores might lose their attractiveness.

An interview of Olivier Bron, CEO of Central and Robinson's

What: 'Our Journey to Revolutionise Impact,' Neiman Marcus’ first environmental social governance report, shares its progress to date, celebrating recent and upcoming investments, and outlining its 2025 ESG strategy.

Why is it important: NMG analysed data from multiple sources, including ESG ratings and rankings, research reports from industry media outlets and trade associations, disclosures from NMG's best-in-class peers, ESG reporting frameworks like Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB), etc. to inform its strategy.

NMG formulated a strategy that is comprised of three components. First, “Advancing Sustainable Products & Services,” which focuses on climate change, increasing sustainable and ethical products, and implementing circular services, NMG aims to make an impact on environmental issues across the entire value chain.

NMG also aims to “Cultivate a Culture of Belonging” for its workforce, customers, and community by setting goals to increase racial diversity in leadership roles, advance workplace equity in line with prominent external standards, uplift and support women-founded fashion technology companies, and champion inclusive marketplaces by increasing spending with diverse retail and non-retail suppliers.

Finally, “Leading with Love in Our Communities,” by aligning its corporate giving strategy with its ESG strategy, ensures that the organisation's values and purpose guide the decision-making process of funding.

Neiman Marcus shares ESG report

What: Luxury brands and duty-free retailers are betting on e-commerce, trendier products, and a better shopping experience at airports to make up for the impact of the pandemic.

Why is it important: With the sales of luxury goods at airport shops down with the pandemic, since business travelers, Chinese tourists, and other big spenders are not traveling, airport retailers are testing new store formats and click-and-collect options to generate more revenue from fewer passengers. Concept stores featuring trendier products aimed at younger shoppers are competing with traditional duty-free shops.

Travelers returning to the airport for the first time since the pandemic will find a different retail landscape awaiting them past the security gate. The duty-free shops selling expensive liquor and cosmetics are still there, but they’re refreshing their assortment to cater to Gen-Z and pushing new websites and shopping apps.

Concept stores pitching lifestyle and contemporary fashion brands are popping up alongside mainstays like Dior and Prada. There are also more things to do beyond shopping, from workout classes to movie screenings.

Among the groups still missing are business travelers and Chinese tourists, historically two of the biggest spenders at airport shops. Instead, terminals are seeing young tourists, especially those making short trips, a group that will make up a majority of passengers by 2025.

These travelers aren’t big shoppers, preferring to splurge on food, drinks and entertainment before boarding their flight. On average, a long-haul Chinese passenger spends over $100 on luxury goods, compared to a short or medium-haul European passenger, who spends just $1, according to Mauro Anastasi, a retail and aviation partner at Bain & Company.

Airports are thus introducing experiences beyond shopping to cater to younger consumers. After passing through security at Baltimore-Washington Airport, travelers can make time for a pre-flight workout at Roam Fitness, borrowing Lululemon gym gear and running shoes and using showers stocked with Malin+Goetz products. At Heathrow, a pop-up Chanel store invited shoppers to try a range of the brand’s beauty products using augmented reality on digital screens.

The future of airport retail 

What: The founder of Showfields reflects on retail and the experience it should bring to customers.

Why it is important: The “inverted business model” where Showfields as a retailer treats brands as final customers and charges them a service rather than buying their product, is an alternative worth being considered for specific parts of department stores (concept stores, dedicated spaces, etc…)

Tal Zvi Nathanael, whom IADS CEO members have met via a video conference in October 2020, explains the concept behind Showfields and his new projects.

He developed Showfields in 2019 out of frustration as retail and the lack of “magic” as he puts it, into a project where surprises lie at the same time in the experience itself but also in the product selection. 60 to 100 brands, in their majority either not distributed or with a DNVB business model, are displayed and renewed every 6 months on the 3 floors of the 1,400 sqm-wide store, with an alternative model: instead of purchasing the products like in a traditional wholesale model, Showfield charges between $12,000 and $36,000 for brands campaigns, caters for the workforce and the VM, and provides data to brands.

There are 4 more stores to be open on the East Coast within 2022.

Showfields’ specific approach to retail 

What: Walmart will launch a beauty accelerator program dubbed Walmart Start to discover up-and-coming beauty brands.

Why it is important: Beauty accelerators have become a popular way for retailers to broaden their assortment and keep a pulse on innovation in the segment.

Walmart will choose five beauty brands to receive various resources and operational support to help prepare them for a potential product launch in store and online.

The beauty brands (which will be announced in May) are expected to launch in Walmart’s stores and online at some point between December 2022 and March 2023.

Other players that have their own brand accelerators include Sephora, Target, and Ulta.

Walmart launches beauty accelerator, Walmart Start

What: Remote work has become the norm for millions of people. Now, retail store associates are eager to join the revolution — and their employers are scrambling to make it a viable option.

Why it is important: The labour shortages are forcing fashion firms to rethink strategies for hiring and retaining workers in low-paying, low-mobility jobs. New technologies, including the growing use of social media and live streaming to sell clothes from stores, are helping some retailers lay the groundwork for associates to work virtually.

In the past two years, both Nordstrom and Neiman Marcus have launched apps that allow their sellers to send messages to customers, share product recommendations and complete their purchases. The apps proved their worth during the pandemic’s early days when they allowed some sales associates to avoid furloughs and connect with consumers online.

With widespread adoption still a ways away, store associates most often use remote selling apps from their brick-and-mortar stores themselves. At Neiman Marcus, some stores have been redesigned with “terminals” and other built-out spaces in the backroom where associates use tablets and cell phones to chat with customers, host styling sessions and even execute sales transactions without stepping foot on a sales floor.

Retailers are also increasingly experimenting with livestreaming which will account for USD 26 billion by 2023 in the US. On the landing page for certain products on its e-commerce site, Nordstrom features videos of sales associates describing the feel and fit of a garment, even offering styling advice.

Retailers are also encouraging associates to embrace an influencer mindset. Neiman Marcus is piloting a program to formalise the social media content processes for style advisors. If retailers were to formally require store associates to post on social media, they may need to update their compensation packages accordingly. They will also need to invest in teaching workers to take on these tasks.

Even as some retailers experiment with remote work for sales associates, complicated challenges around compensation, scheduling and company-specific needs mean the industry still has a ways to go before it’s a widespread reality.

Can store associates work remotely?

What: After reporting their fourth quarter earnings The RealReal is not expected to be profitable until the end of 2024.

Why is it important: The company has reported that the net loss for the company has increased to USD 236 million compared to last year which was USD 176 million. As resale marketplaces are an interesting circular business model to watch, it seems that profitability in such a business model takes time.

The RealReal did see some improvements with an increase in gross merchandise value with a total USD 437 million and net of sales by 50% reaching a total of USD 1.48 billion.

The RealReal claims that regardless of these claims they will have a healthy and strong upcoming year for 2022.

The RealReal net loss continues

What: A new concept placing the Ikea brand as a community space in malls.

Why it is important: Ikea is testing several store formats and brand formulation iterations. By doing this, they are gathering data from different sets of customers, and also exploring options that could serve as examples for other retailers looking to expand their store format portfolio.

Ikea is planning the opening of a new store format in Hammersmith mall in London, and this format is planned to be extended to the US and Canada. Interestingly, they are adding a new format to the traditional big box format (which will also be the format used for their first city centre store in the former Topshop location in London) and the “close to you” convenience store.

This new concept, called “Livat” (lively gathering in Swedish language) is specially adapted to malls with a reduced product offer (1,800 available to take away and 4,000 on display), only self-service checkouts options, and designed to be community spaces where people like to gather.

Ikea opens urban London mall with San Francisco and Toronto next 

What: Second-hand makes a place for itself at Monoprix and installs product corners at 58 stores in France.

Why is it important: The second-hand spaces at Monoprix will host fashion and home items.

For the ready-to-wear side, french company “Entremains” will provide a curation of vintage clothing from luxury brands in ten Monoprix addresses.

“Once upon a time” was also asked to provide second-hand clothes for babies and children with a Monoprix stamp. They will be in the corners at 25 points of sale. For the home department, items from the home universe, picked up by Selency, will be on sale in 25 Monoprix units.

Monoprix installs 58 second-hand spaces

What: Walmart has built a tech platform that powers its last-mile delivery ecosystem.

Why it is important: The retailer has increased the number of digital orders coming from its stores by 170% in the last year, leading it to scale its automated market fulfillment centers, tap machine learning and test autonomous delivery.

Walmart’s retail tech that supports its fulfillment operations is built around its own marketplace and uses automation and machine learning to turn a large number of factors into unable data. The seamless communication across the entire delivery process allows the retailer to replenishment at a shorter cycle, gain close-to-real-time insights of inventory and ultimately react to customer demand. Thus, increasing the shopping experience for customers.

The next phase of Walmart’s store integration and evolution is adding more market fulfillment centers to stores. The retailer has also been testing drones and autonomous vehicles to fulfill order in the last mile.

Walmart steps up automated store distribution

What: The vice president of Walmart Fulfillment Services (WFS) Jaré Buckley-Cox announced that the third-party fulfillment business went through a 500% growth in gross merchandise volume last year.

Why it is important: Last year, Walmart added about 20,000 new sellers to its U.S. marketplace after only launching roughly two years ago. The expansion of the fulfillment services program has been key in "bringing more sellers to Walmart's marketplace” with a 90% retention rate for sellers joining the marketplace.

The program has been quite successful for both Walmart (which with this program is able to add to their advertising business which hit USD 2 million last year), but also the sellers themselves. The current sellers who are currently involved with the program have reportedly experienced a 50% sale growth for items. New members are also able to receive free storage and a 10% discount on fulfillment for the first 90 days for those who sign up before May of this year.

WFS is just one of a growing suite of supply chain and other services Walmart is offering to third parties. The goal for Walmart, along with creating a new revenue source from sellers, is to increase its online assortment with the prediction of reaching over 200 million items by the end of this year.

Walmart's third-party fulfillment business experienced a growth of 500% last year

What: Demand for new stores in central London is at record levels as the retail sector continues to recover from the pandemic.

Why is it important: While major closures on Oxford Street created big voids on the famous shopping street, they presented huge opportunities for new retailers to use up the available space.

There have been more than 1,000 requests from retailers or restaurants to find space in central London over the past year, and 177 of them were from businesses that have never had a presence in the capital before.

Although the number of empty sites increased in many areas during the pandemic the void rates they have created are expected to fall as recovery picks up.

Retail space in central London in high demand

What: Target announced a new starting hourly wage range of USD15 to USD24 for in-store employees, supply chain facilities, and corporate headquarters depending on the job title and location.

Why is it important: This news comes as retailers across the US struggle to fill open jobs in offices and stores. Almost 4.3 million people quit their jobs in December and some retailers have hiked pay and benefits to attract and retain workers.

Along with Target’s new starting hourly wage, they also announced a rollout of expanded health care and education benefits for employees. Target’s announcement represents a $300 million investment in its team.

Target increases starting wages for certain roles

What: Neiman Marcus sets its sight on pop-ups and takes the concept to new, immersive, and experiential heights designed to have customers back in-store again.

Why is it important: The group has hosted over ten pop-up retail experiences across all 37 stores, including exclusive collaborations attracting the public back. The mix of curation, exclusivity, and heightened experiences adds to "retailtainment."

The most recent collaboration was held at the Los Angeles store, where the Neiman Marcus Beverly Hills team met rapper, producer, and entrepreneur Tyler the Creator at their Golf le Fleur* event and began to discuss a partnership. The pop-up offered signature suitcase bags along with a fragrance and a three-bottle nail polish set that had a 100 percent sell-through. On day two, Tyler the Creator was on hand to greet fans which added to the immersive experience.

The most important focus is always going to be the unique relationships with customers – whether it be in-store, online, or through digital selling. Thus, building and deepening the customer relationship through experience, service, and product is a top goal.

The next few months will bring more pop-ups with "well-known European luxury houses." The activations may draw customers into the store, but the fresh mix will certainly catch their eyes they hope their wallets too.

Neiman Marcus focuses on pop-ups

What: Klarna's payment solutions and other services will be available at 150 Brookfield shopping centers to elevate the shopping experience.

Why is it important: Klarna and Brookfield Properties team up in a multi-year partnership to exclusively offer Klarna’s payment solutions and provide experiential marketing to 150 U.S. shopping centers, elevating the in-store shopping experience for millions.

This partnership with Klarna will also include out-of-home media, live stream shopping, augmented reality, as well as their payment solutions.

Klarna partners with Brookfield shopping centers

What: Macy’s is prioritising its private brand portfolio to grow the overall business and capture market share by offering assortments that build style credibility at compelling prices.

Why is it important: Leading the way in the development of well-designed and intensely marketed private brands is Target. After embarking on a private label reboot in 2016. Target now boasts 48 such brands, across apparel, home, consumer goods, and grocery. They brought in $30 billion in 2021, about $6 billion more than Macy's as a whole did. Macy's, who said they would revamp their own brands, has turned to Target veterans. Macy's nameplate (not counting its Bloomingdale's) runs 24 private labels across categories, representing 15% to 20% of its volume; the retailer doesn't disclose their revenue.

In 2020, Macy's unveiled its Polaris turnaround plan, and the goal was for its INC International Concepts, Alfani, Style & Co and Charter Club apparel lines to be well on their way to becoming a billion-dollar brand — to account for 25% of sales by 2025. Since then, with its turnaround resumed after getting interrupted by the pandemic, Macy's has introduced new labels, including ‘And Now This’ women's apparel, and Oake bedding.

Macy’s recently contracted with Brand Love Lab, run by Nadine Steklenski and Noria Morales, two executives instrumental in Target's past brand design efforts. Last week, Emily Erusha-Hilleque, was hired to join Macy's own ranks.

While Target customers can buy name brands across categories, including Apple, Levi's and Lego and all manner of groceries, beauty and household essentials, its apparel and home goods are dominated by its private labels. By contrast, Macy's is in the business of being an exceptional distributor of third-party brands.

With some brands pulling back from department stores, Macy's may have an opportunity to fill the market niche and literal store space left behind. Rather than mimicking Target, they will tuck under Nordstrom. Slick new brands won't matter in a sea of clutter, with no sign of intelligent life. Macy’s has up their game in basic retail blocking and tackling to have anything matter.

Macy’s prioritizes its private brands 

What: Kohl’s will open 400 new Sephora locations as well as add six new brands to the assortment.

Why is it important: While industry reports have been mixed about the partnership performance, Kohl’s chief executive officer Michelle Gass notes that 25 percent of the shoppers of Sephora at Kohl’s are new to Kohl’s, younger, and more diverse than their core consumer base.

Kohl’s is seeing incremental mid-single-digit sales lift to overall store sales in the locations where it has launched and Sephora and Kohl’s are on track to hit their goal of opening 850 shops by 2023.

Kohl’s and Sephora plan on 400 stores in 2022

What: Central’s real estate arm is doubling down on the investment announced by the retail sister company earlier in February 2022.

Why it is important: Central Group goes all-in in terms of projected development over the next 5 years and the acceleration is quite significant.

Central Pattana, the largest Thai mall operator and a subsidiary of Central Group, plans to invest $3.7 bn over the next 5 years in order to both upgrade existing properties but also build new ones. This announcement, which does not precise if the announced amount includes already committed projects, follows Central Retail’s earlier announcement to be ready to invest $3.03 bn  during the next five years.

Central Pattana operates 36 shopping centres located in 30 Thai provinces. The plan is to expand to 50 centres by 2026.

Thailand’s largest mall operator plans a $3.7 bn investment programme in the next 5 years 

What: Several fashion brands are experimenting with next-generation materials or “livestock-free” replacements for conventional animal-based materials produced in nature-friendly ways.

Why is it important: From Gucci to Salvatore Ferragamo, fashion brands are exploring “livestock-free” replacements for conventional animal-based materials that are also made in nature-friendly ways, in a bid to transform their production models.

Next-gen materials make a distinction from “current-gen” leather replacements, such as PVC, that rely on petroleum and harmful chemicals or manufacturing processes. While the race for the best vegan leather is already on, a similar shift is expected to take hold among other animal-based materials, including silk, wool, and fur.

This change has the potential to reduce fashion’s waste stream and carbon footprint and make it a more ethical industry by reducing its reliance on animals to make materials. Next-gen materials will not solve all of fashion’s problems and will not solve the wider problem of overproduction, but they have the potential to reduce some of the most urgent issues.

Plant-based materials are gaining pace