News
Marks & Spencer partners with Clinique
Marks & Spencer partners with Clinique
What: Marks & Spencer reveal a new deal with Clinique, the beauty brand that will be sold both in-store and online.
Why is it important: This partnership is part of Mark & Spencer’s ongoing strategic ‘Brands at M&S’ plan, which sees the rolling out of third-party brands through its stores.
The development of their beauty offer is part of Mark and Spencer’s focus to reshape its identity, helping it to become more relevant to its customer base.
Clinique products will be available through Marks & Spencer, with a Clinique counter including on-hand experts. Forty stores will have Clique’s products displayed in fixtures, with each experience curated specifically to the retailer’s consumer needs.
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2021 Spain fashion consumption was led by Intimates and swimwear purchases
2021 Spain fashion consumption was led by Intimates and swimwear purchases
What: Spain’s fashion spending in 2021 has surpassed 2020 with the high purchases of intimates and swimwear, although still lower than pre-pandemic.
Why it is important: Spanish 2021 textile consumption grew by 15.7% compared to 2020, but it was still 14.3% less than in 2019. Intimate apparel, both for men and women (up 15%), and hosiery (up 20%) led the recovery.
E-commerce has continued to grow and represents 20.8% of total consumption (in 2017 was at only 6%).
With these numbers, Spain is confident that fashion consumption will return to pre-pandemic levels as soon as social life fully recovers.
2021 Spain fashion consumption was led by Intimates and swimwear purchases
La Samaritaine’s storewide exhibition themed: “Atelier Mode”
La Samaritaine’s storewide exhibition themed: “Atelier Mode”
What: La Samaritaine is putting on an exhibition exploring fashion’s creative process, themed “Atelier Mode.”
Why is it important: The department store is launching its first store-wide exhibition.
In the store’s central stage until May 12 is the “La Mode Est Un Jeu” exhibition, dedicated to fashion photographer Erwin Blumenfeld. It will explore his radical approach to composition, optical illusions, and depth of field using techniques such as translucent screens or putting negatives in the refrigerator.
La Samaritaine will also offer more hands-on opportunities, from do-it-yourself kits in the “Boutique de Loulou” selection, to workshops including live sketching sessions on weekends that include designing a look virtually through a sketching app or IRL, with a selection of fabrics from deadstock platform Nona Source or learning how to do makeup like a runway pro in the beauty department.
Brands like Dior, Destree and By Far will also get in step with the program by being given free rein for a week to showcase their creative universes through in-store events.
The store-wide exhibition will roll out in-store and online for 12 weeks starting February 17th.
La Samaritaine’s storewide exhibition themed: “Atelier Mode”
American Dream mall drains reserves
American Dream mall drains reserves
What: American Dream super mall in New Jersey, drained a reserve fund to make a bond payment as it struggles to attract shoppers and tenants with the pandemic.
Why is it important: The American Dream, which features an indoor ski slope, amusement park and water park, nearly emptied a reserve account to make a $9.3 million payment due on about $290 million of debt.
Failure to make a payment on the sales tax debt doesn’t constitute a default or require the mall to pay back the loan immediately however, American Dream wasn’t complying with obligations to provide updates on project costs and performance
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Walmart launches a shop-by-diet shopping app
Walmart launches a shop-by-diet shopping app
What: New filters according to diet, allergens or specific requirements are introduced to help customers with a specific diet to shop.
Why it is important: Wellness is everywhere and customers are increasingly concerned about their health as a whole. It is more than probable that this type of filter will generalize.
Walmart has partnered with Sifter, a diet-specific shopping specialist, to offer a new way to shop in their stores through Shop-by-Diet. This new app allows customers to scan grocery items to determine if they align with dietary needs.
They can also flag allergens, or desired categories (gluten free, plant based, etc…). According to Walmart, 200 m customers are following an alimentary diet and 85 m are avoiding specific types of food for health reason.
German DIY chain Hornbach refunds customers if prices drop
German DIY chain Hornbach refunds customers if prices drop
What: A hardware specialist commits to guarantee lowest prices 30 days after the purchase.
Why it is important: This stunt is astutely built to drive traffic to the website or the app, as the claim can not be made in stores.
Hornbach, the leading German and Austrian DIY hardware store, launches a new stunt in the Netherlands, as in case the price they paid is lower in the next 30 days, the price difference will be refunded.
This offer is valid on the entire assortment (120,000 products) and the refund (only through form of credits) can be claimed only through the website or the app, not in store. One has to note that this tool seems crafted to increase Hornbach’s marketshare in the Netherlands, a new market for the company.
Harvey Nichols relaunches rewards loyalty programme
Harvey Nichols relaunches rewards loyalty programme
What: The updated programme has been reimagined to “instantly” reward customers with a range of personalised benefits and a 5% cash-back offer.
Why it is important: Customer incentives are key this year even for higher-end retailers as the cost of living rises alongside inflation. That extends to loyalty schemes and easier payment options.
Points, earned across shopping, dining and by downloading the Harvey Nichols app, are then converted into cash rewards that can be spent online and in store. As members spend more, their points level increases and benefits build, offering up to 5% cash-back. Unlike many programmes, this is redeemable at any time, notes the retailer.
As part of the Rewards programme, members are also able to choose from up to 14 personalised benefits and select “those that matter to them most”. The higher their membership level, the more to choose from.
Allbirds is entering the secondhand sneaker market
Allbirds is entering the secondhand sneaker market
What: Allbirds will offer shoe resale with “Rerun”, an integrated resale platform as part of its push to reduce its carbon emissions.
Why is it important: US customers will be able to trade their slightly imperfect and gently used sneakers for $20 in-store credit by dropping them off at one of three retail locations in Los Angeles, Chicago and New York City.
Sneakers will then be refurbished by Trove re-commerce service, before being resold on the Allbirds ReRun for around two-thirds of the original retail price.
While the resale platform will focus on sneakers for now, the brand will consider expanding it to new categories in the future.
Flannels to open experience-oriented flagships to drive growth
Flannels to open experience-oriented flagships to drive growth
What: Flannels plans on crafting regional retail strategies to drive growth outside of global cities.
Why is it important: Flannels is continuing its expansion, by opening a total of 15 experience-oriented flagships across the UK by 2025.
Flannels opened more than 10 stores in cities that have been typically underserved by traditional luxury players in 2021. With international tourism facing continued disruption in 2022, repatriated luxury spending represents a significant growth opportunity for well-positioned retailers.
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Flannels to open experience-oriented flagships to drive growth
Nordstrom’s podcast: “The Nordy Pod”
Nordstrom’s podcast: “The Nordy Pod”
What: Nordstrom introduces its first podcast hosted by, president and chief brand officer, Pete Nordstrom. The Nordy Pod is a way for Nordstrom fans to stay up to date and have an inside look behind the scenes.
Why is it important: Podcasts have taken off in recent years. Their appeal is their convenience as they are easy to access and users can listen to audio episodes while running, cooking, cleaning and tackling other tasks. Nordstrom’s podcast comes as brands are increasingly facing pressure to take a stand on social issues, and consumers are seeking to purchase from brands that align with their values. In May 2021, El Corte Ingles also launched a series of podcasts covering cultural topics.
The first episode features lengthy, unscripted interviews at Nordstrom’s New York City store with legendary merchant Mickey Drexler covering his beginnings and career ups and downs as well as advice. As well as an interview with a veteran Nordstrom stylist and a customer whom Nordstrom helped after her daughter had a “potty training” accident in the store.
More interviews are promised with employees, customers and “prominent industry voices.”
KaDeWe relaunches omnichannel
KaDeWe relaunches omnichannel
What: The German department store now combines content, products, and services on kadewe.de.
Why it is important: The goal is to offer customers the same digital diversity and experience as in the store. To that end, new product categories will be added to the online offer. The luxury concession partners will be connected to the website to become an omnichannel luxury platform.
In June 2020, The KaDeWe Group launched its online shop with about 250 brands in the women’s, men’s, and kids’ fashion categories. Last Spring, the offer expanded with beauty. Toys, travel, and home & living have recently been added. More categories will come this year such as food.
London: West End footfall rises again
London: West End footfall rises again
What: Lifting off Covid-19 pandemic-related restrictions has concrete and immediate effects on footfall and retail.
Why it is important: The observed pattern is the same in most of the countries where the Covid-19 restrictions have been the most complete.
The British government has decided to lift all restrictions related to Covid-19, and this move has concrete effects on the business. In the first full week after the rules were loosened, footfall reached 79% of prepandemic levels in the West End part of London.
From 27 January to 2 February, daily footfall was up +10% week on week and morning commuter footfall was up +9% on average.
This is also a phenomenon that has been observed in other countries where the Covid restrictions are totally lifted, such as Denmark.
Selfridges’ first live in Cantonese
Selfridges’ first live in Cantonese
What: Selfridges has been testing out livestream shopping experiences in Cantonese.
Why is it important: In 2021, Chinese consumers were expected to spend $300 billion on products featured in livestream shopping. As a result, Selfridges is learning firsthand about the potential and benefits of livestream shopping. A more immersive experience should lead to higher engagement, higher conversion and happier customers.
In China, travel business in Hainan hits $9.47bn in 2021
In China, travel business in Hainan hits $9.47bn in 2021
What: The travel retail hotspot in the world is now Hainan.
Why it is important: Now that Chinese customers are accustomed to shop at home with a generous duty free cap, questions about their return in the international circuit are raised, all the more that we still lack visibility about the reopening of the borders.
Due to the international tourism disruption related to the Covid-19 pandemic, Chinese customers have been enticed to shop at home, which helped Hainan soar as a popular destination and a hotspot for travel retail. As a consequence, the revenue increased +84% in 2021 to reach $9,47bn, knowing that the business already posted a +83% increase in 2020.
This represents a traffic of 9,67m customers, all allowed to spend up to $15,500 free of duty, which is the most generous offshore duty-free spending cap in the world. The market in Hainan is dominated by China Duty Free Group, CNSC, Hainan Tourism Investment Duty Free Co, Hainan Development Holdings and Shenzhen Duty Free.
Aldi uses age-estimation to sell alcohol
Aldi uses age-estimation to sell alcohol
What: Aldi is testing a new technology, different from facial recognition, to estimate the age of customers willing to buy restricted products.
Why it is important: If such a new usage becomes widespread and accepted, especially by the younger generations, other usages, especially on cosmetics, might be coming soon.
The German grocery chain Aldi is testing a new technology in its no-checkout Greenwich store in the UK. In this store, called Shop&Go, which is app-assisted, customers can pick up products and walk-out without going through a cashier. A novelty compared to similar Amazon’s just-walk-out stores is the introduction of an age recognition technology to help sell alcohol and cigarettes.
It is based on a machine-learning algorithm scanning photos of faces to estimate their age, and is not based on facial recognition. Images are deleted straight after the process. According to Yoti, the start-up behind the technology, the age estimation has an accuracy of 2.2 years.
LVMH double down on JD.com
LVMH double down on JD.com
What: Givenchy’s JD.com mini programme officially launched, making it the latest in a raft of brands from luxury conglomerate LVMH to join forces with the Chinese e-commerce platform.
Why it is important: Even brands notoriously adverse to partnering with third-party e-commerce platforms, such as Louis Vuitton or Dior have signed on to JD.com’s mini programmes over the past year in order to better reach China’s young, digitally-native luxury consumer base.
“What we are offering LVMH, is the most tailored and customised business models, based on the brands’ needs,” Kevin Jiang, president of international business, JD Fashion and Lifestyle, with brands able to choose from a wholesale model, a marketplace flagship model (similar to that offered by rival Tmall Luxury Pavilion) and the newer mini programme option.
“The brands can completely control the customer experience, the user journey, the layout,” Jiang said of the mini programmes, which can be virtually identical to the brand’s own WeChat mini programmes.
Jiang says luxury sales on the platform have seen annual growth of over 200% year-on-year since 2019 and he expects a similar result in the year ahead.
Lojas Renner appoints new CFO
Lojas Renner appoints new CFO
What: Lojas Renner, Brazil’s largest clothing retailer, announced former Unilever executive Daniel Martins dos Santos as its new chief financial officer.
Why is it important: Lojas Renner’s newly appointed CFO has extensive experience in the consumer goods sector and will hold both the position of CFO and of investor relations officer.
Holiday hiring in retail dropped 7%
Holiday hiring in retail dropped 7%
What: From October through December, seasonal retail jobs, transportation and warehousing jobs dropped.
Why it’s important: The onslaught of Covid cases, the difficulty for parents to arrange childcare, and the sheer availability of jobs have prevented many from entering the retail business.
Department stores have had to learn how to cope with this staff shortage: Walmart temporarily closed down some stores during the omicron wave, and Macy's has reduced store hours.
Louis Vuitton to shut downtown duty-free shops in Korea
Louis Vuitton to shut downtown duty-free shops in Korea
What: Having stopped running its store at Lotte Duty Free Jeju in December, Louis Vuitton will close three more (at the Shilla Duty Free in Jeju, Lotte Duty Free in Busan and Lotte World Tower in Jamsil, Seoul) in March.
Why it is important: The brand’s planned withdrawal from downtown duty-free shops in Korea suggests that local duty-free stores may no longer be profitable as Chinese consumers don’t spend abroad anymore.
Louis Vuitton also plans to pull out from the three remaining downtown duty-free stores (Lotte Duty Free, the Shilla Duty Free and Shinsegae Duty Free in Seoul) between October this year and March next year. The Louis Vuitton store at Incheon Airport Terminal 1 is unaffected by the phasing out of downtown operations in Korea. The company plans to open a second store at the airport’s Terminal 2 by 2023.
The decision to close comes as the French brand seeks to focus on airport duty-free shops, especially those in China’s domestic flight airports.
In mainland China, Louis Vuitton plans to have five airport stores open by the end of this year, including its existing stores at Beijing Capital International and Shanghai Hongqiao.
Bloomingdale’s launches digital fitness classes for customers
Bloomingdale’s launches digital fitness classes for customers
What: Obé, a digital fitness platform, has partnered with Bloomingdale's offering a series of free classes that are found on the Bloomingdale’s website as part of the retailer’s virtual “On Screen” events.
Why is it important: The On-Screen platform gives clients the flexibility of enjoying Obé fitness classes remotely, whether it be in real time or on their own. As well as the opportunity to discover top activewear brands showcased in the classes, that they can discover at Bloomingdale’s.
Bloomingdale’s Launches Digital Fitness Classes to Customers
Harrods confirms two more H Beauty store openings
Harrods confirms two more H Beauty store openings
What: Harrods has confirmed that 2 new stores of its H Beauty chain will open in the spring of 2022.
Why is it important: Two new stores will open, one in Bristol and one in Newcastle's Gateshead Metrocentre in the former House of Fraser store.
Harrods will now account for 5 H Beauty stores up and running including those in the Lakeside mall, Essex, Milton Keynes, and Edinburg.
The H Beauty expansion comes as premium beauty has remained resilient during the pandemic, despite the setback in work-from-home orders, mask-wearing and the cancellation of social events made in sales of make-up and fragrances. Expansion focused at the moment; H Beauty helps Harrods gain market share within the beauty industry.
Lotte Group acquires Ministop Korea
Lotte Group acquires Ministop Korea
What: The Korean conglomerate double downs on local convenience stores in the country
Why it is important: The convenience store channels take a new meaning in the times of omnichannel operations and ultra-fast delivery when you are a department store company.
Lotte Group, the Korean conglomerate which also operates Lotte department stores and malls and 7-Eleven in the country, has acquired the Korean division of Ministop from its Japanese owners, for an amount of $263m.
Ministop represents 2,600 POS in the country as well as 12 logistic centres, and those stores will add to the 11,750 7-Eleven stores Lotte already owns and operate.
The Japanese mother company, Ministop, will also sell its stake in Robinsons Convenience Stores, the operator of 460 Ministop stores in the Philippines.
Baillieu Myer, scion of Australia’s retail dynasty, dies at 96
Baillieu Myer, scion of Australia’s retail dynasty, dies at 96
What: Sidney Baillieu (Bails) Myer who followed in his father’s footsteps into the retail trade, passes away at 96 years old.
Why is it important: Myer is Australia’s leading department store operator. After several years of closing unproductive locations, its network currently has 59 department stores.
Bails took the reins in 1956 when father and then brother died, and quickly became a key player in Australian retail. After opening the Myer Emporium in Melbourne’s Chadstone shopping centre in 1960, he led an aggressive expansion of Myer department stores across Australia.
