What: NRF forecasts 2.7-3.7% retail sales growth for 2025 amid consumer confidence challenges and digital commerce expansion.

Why it is important: This projection demonstrates the retail industry's resilience in maintaining growth despite significant headwinds from tariffs and inflation.

The National Retail Federation projects retail sales growth of 2.7-3.7% for 2025, with total sales expected to reach between USD 5.42 trillion and USD 5.48 trillion. Digital commerce continues to show strong momentum, with non-store and online sales forecast to grow between 7% and 9% year-over-year, potentially reaching USD 1.6 trillion. While the economy demonstrates continued momentum, bolstered by low unemployment and real wage gains, significant policy uncertainty is weighing on consumer and business confidence. NRF's chief economist Jack Kleinhenz notes that while consumer confidence is declining due to lingering inflation and tariff anxiety, actual spending patterns remain relatively stable. The forecast, which excludes automobile dealers, gasoline stations, and restaurants, reflects the complex balance between economic fundamentals and growing consumer concerns about the impact of trade policies.

IADS Notes: The NRF's 2025 forecast reflects broader market dynamics affecting retail performance. March 2025 data shows consumer confidence at a three-year low, with inflation expectations reaching 6.0% and the Consumer Confidence Index recording its largest drop since August 2021. This anxiety is well-founded, as March 2025 analysis projects annual household cost increases of USD 1,200 due to tariffs, with 62% of consumers expressing concern about rising retail prices. Despite these challenges, recent performance data from January 2025 demonstrates retail resilience, with holiday season global sales reaching USD 1.2 trillion and online sales growing 8.7% to USD 241.4 billion, suggesting that while consumers remain cautious, spending continues through strategic channel shifts, particularly toward mobile commerce which now accounts for 54.5% of transactions.

NRF predicts retail sales will grow at a slower pace in 2025

What: Selfridges expands Quiet Hour program across all stores, making neurodiversity support a permanent retail feature.

Why it is important: With one in seven UK residents being neurodivergent, this initiative addresses an underserved market segment while setting new standards for retail accessibility.

During Neurodiversity Celebration Week, Selfridges has significantly expanded its accessibility initiatives, transforming its weekly Quiet Hour into a daily feature across all stores. The program, which includes lowered music and switched-off screens to create a calmer shopping environment, will now run every weekday from 10am to 11am, becoming permanent in Manchester and Birmingham locations. This expansion builds upon the success of their 2022 initiative and demonstrates the retailer's commitment to addressing neurological differences in retail spaces. Beyond physical adaptations, Selfridges is fostering internal awareness through their Thinking Differently community and hosting educational events, including a virtual Chat For Change with neurodiversity consultant Tania Martin. This comprehensive approach aligns with their refreshed "Open To The World" DEI strategy, continuing the inclusive legacy established by founder Harry Gordon Selfridge in 1909.

IADS Notes: Selfridges' expansion of Quiet Hour reflects a broader retail shift toward neurodiversity support. Westfield London's February launch of a permanent sensory room and Walmart's November implementation of sensory-friendly hours across U.S. stores have already proven successful. The initiative aligns with luxury sector trends, where brands maintaining strong inclusion commitments saw increased engagement. Research shows 70% of shoppers prefer personalized retail experiences, suggesting neurodiversity initiatives serve both social responsibility and business growth.

The initiatives making inclusivity key at Selfridges

What: TikTok launches strategic e-commerce expansion in Germany, France, and Italy amid US market uncertainty.

Why it is important: The strategic European growth reveals TikTok's evolution from a social media platform to a major e-commerce player, potentially transforming traditional retail models.

TikTok Shop is embarking on a significant European expansion, launching its e-commerce operations in Germany, France, and Italy on March 31, 2025. This strategic move follows successful implementations in the UK, Spain, and Ireland, whilst facing uncertainty in its largest market, the United States. The platform's e-commerce feature has shown remarkable growth in the US, with gross merchandise volume increasing sevenfold to reach $7-8 billion, despite falling short of its ambitious $17.5 billion target.

The expansion introduces a sophisticated 'full-custody' model, where TikTok manages everything from listing to after-sales services for qualified cross-border merchants. This comprehensive approach requires strict adherence to European Union compliance standards. With additional plans to expand into Japan by June and future considerations for the Brazilian market, TikTok's strategy demonstrates its commitment to establishing a global e-commerce presence, even as it navigates complex regulatory challenges in the US market.

IADS Notes: TikTok Shop's ambitious European expansion in March 2025 represents a strategic pivot amidst US market uncertainties. The platform's impressive seven-fold GMV growth to $7-8 billion in the US market, despite falling short of its $17.5 billion target, demonstrates the significant potential of social commerce. The expansion into Germany, France, and Italy, following successful implementations in the UK, Spain, and Ireland, showcases TikTok's commitment to developing its full-custody model and cross-border commerce capabilities. This European growth strategy, coupled with planned expansions into Japan and Brazil, indicates a broader shift in global digital retail dynamics.

TikTok Shop to expand to Germany, France, Italy next week amid uncertainty in US

What: US implements "Liberation Day" tariffs targeting major trading partners, with duties ranging from 20% to 49% across key retail sourcing markets.

Why it is important: The combination of country-specific duties and e-commerce restrictions signals a transformative moment for global retail trade, particularly affecting fashion and consumer goods sectors.

President Trump's "Liberation Day" announcement introduces significant changes to US trade policy, implementing a comprehensive tariff structure targeting major trading partners. The measures include duties ranging from 20% on European Union goods to 49% on Cambodia, with China facing 34% tariffs. Key apparel sourcing markets - China, Vietnam, and Bangladesh - which account for 49% of US apparel imports, will see duties of 34%, 46%, and 37% respectively. Additionally, the elimination of the USD 800 de minimis trade exception, effective May 2, particularly impacts e-commerce giants like Shein and Temu. While Canada and Mexico maintain existing USMCA arrangements, with 25% duties only on non-compliant goods, the European Union has already signaled potential retaliatory measures. Industry groups warn these changes will significantly impact consumer prices and business operations, particularly affecting fashion and retail sectors.

IADS Notes: Trump's "Liberation Day" tariffs represent a seismic shift in retail economics, building upon mounting industry pressures. In March 2025, BCG projected USD 640 billion in additional US import costs, prompting unprecedented supply chain restructuring as evidenced by Shein offering 30% higher procurement prices to relocate manufacturing to Vietnam. The elimination of the USD 800 de minimis rule in February 2025 particularly impacts e-commerce operations, affecting approximately 4 million daily shipments, with more than half originating from China. Consumer response has been notably negative, with March 2025 data showing 62% of consumers expressing concern about rising apparel costs, leading to the sharpest decline in the Conference Board's Consumer Confidence Index since August 2021. This combination of supply chain disruption, e-commerce transformation, and consumer anxiety signals a fundamental reshaping of retail industry dynamics.

U.S. President announced reciprocal duties on America's trading partners and the end of the de minimis trade exception

What: Saks Global transforms buying organisation by merging Saks Fifth Avenue and Neiman Marcus teams under single leadership structure, marking significant milestone in post-merger integration.

Why it is important: This organizational restructuring demonstrates how luxury retail consolidation is fundamentally changing traditional department store operations, with implications for vendor relationships, talent management, and buying practices.

Saks Global's latest organizational transformation establishes a unified commercial team of senior-level merchants and fashion executives overseeing both Saks Fifth Avenue and Neiman Marcus operations. This strategic restructuring includes the appointment of five senior vice presidents of brand partnerships and buying, drawing talent from both retail nameplates to oversee key categories including beauty, shoes, designer ready-to-wear, and menswear. The integration has triggered significant leadership changes, with several high-profile departures including respected merchants Kate Oldham and Louis DiGiacomo. This reorganisation is part of a broader consolidation effort that has reduced the US corporate workforce by 14% since the December 2024 merger, contributing to targeted annual cost savings of USD 500 million. While Bergdorf Goodman maintains separate management, the new structure gives buyers expanded responsibilities and greater market influence. This transformation coincides with significant vendor relationship changes, including a 25% reduction in brand partnerships and new payment terms, reflecting the complex balance between operational efficiency and maintaining strategic partnerships.

IADS Notes: The formation of Saks Global's unified commercial team in April 2025 represents the culmination of a comprehensive transformation that began with the USD 2.7 billion merger in December 2024. Following the initial leadership restructuring under Emily Essner in January 2025, which introduced a technology-driven approach to retail management, the company has progressively dismantled traditional department store hierarchies. This evolution has been marked by significant personnel changes, including the departure of key Neiman Marcus executives in late 2024 and recent exits of influential merchants like Kate Oldham and Louis DiGiacomo. The organisational transformation has been accompanied by aggressive cost-optimisation efforts, with corporate workforce reductions totaling 14% since the merger, contributing to the targeted USD 500 million in annual savings. The impact on vendor relationships has been particularly notable, as evidenced by February 2025's announcement of a 25% reduction in brand partnerships and new 90-day payment terms. While these changes have created immediate challenges in vendor relations, they reflect Saks Global's broader strategy to leverage its enhanced market position and create a more efficient, integrated luxury retail operation.

Saks Global resets the buying team

What: AlixPartners launches an AI-powered forecasting platform that integrates hundreds of data sources to optimise retail pricing, promotions, inventory, and marketing strategies.

Why it is important: This development comes at a crucial time when retailers are seeking to enhance their forecasting capabilities, with industry data showing that AI-driven approaches can improve customer service efficiency by up to 30% while optimising inventory and pricing decisions.

AlixPartners' new AI Profit Engine represents a significant advancement in retail forecasting technology, designed to address the industry's crucial challenge of predicting customer behaviour and spending patterns. The platform integrates data from hundreds of internal and external sources, including pricing strategies, marketing investments, inventory availability, competitive pricing, and macroeconomic conditions, to create more accurate demand forecasts. This comprehensive approach enables retailers to optimize their pricing and promotion strategies, inventory management, and marketing initiatives. The solution's ability to conduct "what-if" analyses helps decision-makers identify key operational levers across multiple business functions, allowing retailers to validate quarterly guidance and test promotional strategies before deployment. This innovative tool arrives as traditional retail forecasting methods struggle to accurately predict two essential metrics: customer footfall and spending patterns, offering a data-driven solution to enhance profitable growth in an increasingly complex retail landscape.

IADS Notes: Recent retail industry developments underscore the timeliness of this launch. As observed in March 2025, while all retailers plan to implement AI initiatives, only 32% effectively keep pace with customer behaviour. The potential impact is significant, with early AI adopters achieving revenue increases of 6% or more and customer service improvements of up to 30%. Success stories like Intime Department Store's 15% boost in counter sales through AI integration demonstrate the tangible benefits of transitioning from traditional forecasting methods to AI-powered solutions.

AlixPartners launches an AI profit engine

What: Retail leasing in India's top 8 cities surges 55% year-on-year, driven by international brand entries and strategic infrastructure development, despite challenges in smaller markets.

Why it is important: This growth trajectory aligns with India's projected evolution into a $2 trillion retail market by 2033, while the contrasting performance between major cities and smaller markets reveals critical insights for future retail development strategies.

India's retail real estate sector is experiencing remarkable momentum, with leasing activity in the top eight cities surging 55% year-on-year. This growth is particularly evident in major metropolitan areas, where international brands are establishing significant presence, with Delhi-NCR emerging as the preferred destination for over half of new entrants. The expansion is supported by strategic infrastructure developments and improved supply chain efficiency through Free Trade Warehousing Zones. However, the market presents a nuanced picture, with smaller cities facing challenges as evidenced by increasing vacancy rates in some locations. The retail landscape is further evolving through the integration of immersive shopping technologies and sustainable practices, reflecting changing consumer preferences. This transformation is reshaping India's retail sector, with European retailers, particularly from France and Italy, leading the international brand influx and contributing to the market's sophisticated evolution.

IADS Notes: Recent market data provides comprehensive context for India's retail leasing surge. In February 2025, reports confirmed 27 new international brands entering the market, with Delhi-NCR emerging as the preferred destination for over half of these retailers. This expansion is supported by strategic infrastructure developments, including Free Trade Warehousing Zones that enhance supply chain efficiency and improve connectivity to major industrial clusters. However, the growth story presents contrasting narratives across different market tiers. While luxury retail secured approximately 190,000 square feet throughout 2024, smaller markets face challenges, evidenced by the increase in "ghost malls" from 57 in 2022 to 64 in 2023. The market's evolution is further shaped by Coresight Research's identification of key trends, including expansion to Tier 2+ cities and focus on immersive shopping technologies. This complex landscape suggests that while overall leasing activity remains robust, success increasingly depends on strategic location selection and alignment with evolving consumer preferences.

Retail leasing surges 55% year-on-year in top 8 Indian cities

What: British retailer End marks two decades of growth by maintaining focused expansion and deep-rooted connection to sneaker and street culture

Why it is important: End's survival amid multi-brand retail consolidation provides valuable lessons in sustainable growth and market positioning;

British retailer End is celebrating its 20th anniversary, standing out as a success story in the challenging multi-brand retail sector. Founded in Newcastle in 2005 by Christiaan Ashworth and John Parker, the company has evolved into an influential retailer combining fashion, design, art, and music. With flagship stores in London, Milan, Newcastle, Glasgow, and Manchester, and a website attracting over 10 million monthly visitors, End has successfully balanced digital and physical retail presence. The company's recent recapitalisation through acquisition by Apollo has helped reduce debt while maintaining operations. Under CEO Parker Gundersen's leadership since 2022, End continues to focus on sharp curation and collaborative projects, with anniversary celebrations planned around themes of British culture. The company's selective approach to store expansion and strong brand relationships has helped it maintain its position despite market challenges.

IADS Notes: End's successful combination of digital reach and selective physical expansion offers a compelling contrast to broader market trends. While March 2024 saw significant upheaval in the digital luxury retail sector, End's balanced approach of maintaining 10 million monthly online visitors while carefully curating physical locations has proven resilient. This strategy particularly stands out against February 2025 data showing how other retailers have struggled to maintain premium positioning across multiple channels. End's focus on creating distinctive store experiences in key locations like London, Milan, and Newcastle, rather than pursuing aggressive expansion, demonstrates how targeted growth and strong brand curation can succeed where broader market presence has failed.

How the cult British retailer END. defied the odds

What: Saks Fifth Avenue launches dedicated Amazon Luxury storefront featuring Balmain and Dolce & Gabbana, marking a significant evolution in luxury digital retail distribution.

Why it is important: This initiative signals a new phase in luxury retail transformation, where established department stores are finding innovative ways to combine their brand authority with the reach of global e-commerce platforms.

Saks Fifth Avenue's launch of a dedicated storefront within Amazon Luxury represents a strategic advancement in luxury retail distribution. The partnership, which follows Amazon's investment in Saks Global since December 2024, introduces high-end products from prestigious brands including Balmain and Dolce & Gabbana to Amazon's platform. Operating as a "store within a store" within Amazon Luxury, Saks maintains control over its merchandise and fulfilment operations, ensuring brand integrity while accessing Amazon's extensive customer base.

The collaboration builds upon Amazon's existing luxury initiatives, which began in 2020 with the creation of Amazon Luxury. Saks Global's president and chief commercial officer, Emily Essner, emphasises the partnership's potential for understanding customer engagement and accessing qualified luxury consumers through Amazon's platform. This strategic move aligns with broader industry trends toward digital innovation while preserving the exclusive nature of luxury retail experiences.

IADS Notes: The launch of Saks' Amazon storefront marks a significant evolution in luxury digital retail strategy, building on the foundation laid by Amazon's investment in Saks Global during the December 2024 Neiman Marcus acquisition. As noted in February 2025, Saks Global's careful approach to brand participation has been crucial in securing prestigious names like Balmain and Dolce & Gabbana for the platform. This development follows Amazon's earlier efforts in luxury retail through its Amazon Luxury section, launched in 2020, but represents a more sophisticated approach through the "store within a store" model. The timing is particularly strategic, coming after March 2025's successful launch of Michael Kors on Amazon, which demonstrated the viability of premium brand presentation on the platform. This partnership aligns with Saks Global's broader transformation under Emily Essner's leadership, where traditional retail hierarchies are being replaced by technology-driven approaches, as evidenced by the April 2024 launch of the Saks Media Network. The collaboration represents a delicate balance between maintaining luxury brand integrity through controlled merchandise and fulfillment while leveraging Amazon's vast customer base and technological capabilities.

Saks launches Amazon storefront

What: Italian government plans to invest in Coin through Invitalia as part of a EUR 21.2 million capital increase to preserve 1,390 jobs.

Why it is important: The government's involvement validates the strategic importance of preserving major retail chains for national economic stability.

The Italian department store group Coin is advancing towards a significant restructuring milestone with the potential entry of the Italian government into its capital structure through Invitalia, the national investment and business development agency. The company has already received binding offers for a capital increase valued at EUR 21.2 million, led by Sagitta SGR and MIA Srl, with current shareholders maintaining their participation. Following positive investigation results, Invitalia is poised to join these investors, a move that would guarantee operational continuity and support business recovery. The comprehensive relaunch plan, set to be presented in late April, focuses on preserving 1,390 jobs and includes the successful relocation of 56 employees affected by initial store closures. The company is also in negotiations with an additional potential partner, with the next crucial meeting scheduled for April 22.

IADS Notes: The Italian government's potential entry into Coin's capital structure through Invitalia marks a significant evolution in the company's restructuring journey. In December 2024, Coin initiated a comprehensive transformation plan to address its EUR 80 million debt burden, which included the planned closure of eight stores and impacted over 1,300 employees. The current development builds upon positive momentum from February 2025, when the company secured a EUR 21.2 million capital increase from private investors including MIA and Sagitta. This latest government intervention, combined with binding offers from private investors, demonstrates a hybrid approach to retail rescue, where public support complements private investment to ensure operational continuity and workforce preservation.

Coin finalises a relaunch plan with the Italian government entering its capital

What: Trent Limited reports a 56.2% decline in Q4 profit to Rs 311.6 crore despite ongoing store expansion and strategic partnership restructuring.

Why it is important: The financial outcome demonstrates how Indian retail leaders are navigating market transformation through store network expansion and international partnerships, even as profit margins face pressure.

Trent Limited's fourth-quarter results reveal a significant shift in financial dynamics, with profits declining 56.2% to Rs 311.6 crore. This performance comes during a period of aggressive expansion, with the company adding 14 new Westside stores and 62 Zudio locations, bringing their total network to 238 and 635 stores respectively. The company's strategic approach includes sophisticated partnership arrangements, particularly evident in their restructured agreements with international brands Zara and Massimo Dutti. Despite profitability challenges, Trent continues to pursue growth opportunities in India's evolving retail landscape, balancing premium and value segments through their multi-brand portfolio. Their expansion strategy reflects broader market trends, as India's retail sector experiences unprecedented growth with new international entrants and increasing retail space demand in major cities.

IADS Notes: As observed in April 2025, India's retail landscape has shown remarkable dynamism with a 55% surge in leasing activity across top cities. This expansion coincides with Trent's ambitious growth strategy, demonstrated in February 2025 through significant store additions across their retail formats. The company's sophisticated approach to international partnerships, highlighted in April 2025, reflects the maturing of India's retail partnership models. This evolution occurs against the backdrop of intensifying competition, as noted in January 2025 when 27 new international brands entered the market, reshaping the competitive landscape for established players like Trent.

Trent Q4 profit falls 56.2%

What: Vinted Group achieves record-breaking financial performance with €76.7m net profit and €813.4m revenue, while expanding its operational footprint and launching new investment initiatives.

Why it is important: This milestone demonstrates the maturation of the second-hand market, as platforms transition from growth-focused strategies to profitable business models while maintaining aggressive expansion.

Vinted Group has reported exceptional financial results, with net profit soaring 330% year-on-year to €76.7m and revenue climbing 36% to €813.4m. This performance reflects the company's successful execution of a multi-faceted growth strategy. The group has expanded its geographical presence by launching operations in Croatia, Greece, and Ireland, while simultaneously developing its logistics capabilities through Vinted Go, which focuses on providing cost-effective shipping solutions via locker and pick-up-and-drop-off networks in France and the Benelux region, with planned expansion into Spain and Portugal.

The company's commitment to innovation is evidenced by the launch of Vinted Ventures, a dedicated investment arm focused on supporting the next generation of re-commerce startups. CEO Thomas Plantenga attributes this success to the company's relentless focus on cost control, infrastructure development, and scaled innovation, emphasizing the group's vision of transforming societal consumption patterns through an ecosystem of complementary businesses.

IADS Notes: Vinted's exceptional performance in early 2025, with a 330% increase in net profit to €76.7m and 36% revenue growth to €813.4m, marks a significant evolution from its first profitable year in 2023, when it reported €17.8 million in profits. As noted in December 2024, the company's success stems from its innovative business model, eliminating seller fees while diversifying revenue through advertising, shipping, and payment services. The expansion into Croatia, Greece, and Ireland, coupled with the development of Vinted Go's logistics operations in France and Benelux, demonstrates the company's strategic focus on infrastructure development. This growth trajectory aligns with broader market trends, as ThredUp's March 2024 report projected the global second-hand market to reach €350 billion by 2028. The launch of Vinted Ventures in 2025 represents a strategic evolution, following the company's successful integration of technology and logistics capabilities, as evidenced by its March 2025 'House of Vinted' luxury showcase in London, which demonstrated the platform's ability to bridge digital and physical retail experiences.

Vinted revenue and profits soar

What: Printemps Group strengthens its executive committee with the appointments of 2 seasoned executives, Laëtitia Henry as general manager of Printemps Haussmann and Mélanie Turpin as general manager of human resources.

Why it is important: These strategic appointments come at a crucial time in Printemps' transformation journey, building on recent executive team changes and supporting the company's international expansion plans, particularly its upcoming Wall Street flagship opening.

Printemps Group has announced two significant appointments to its executive committee, naming Laëtitia Henry as the new general manager of its flagship Printemps Haussmann store and Mélanie Turpin as general manager of human resources. Henry brings valuable experience from various luxury and retail brands, including Reebok, Cartier, and Chloé, with positions held across both U.S. and French markets. She succeeds Laurence Nicolas, who had led the historic department store since 2021. Turpin, who joined Printemps in 2021, brings two decades of retail experience from Auchan, where she progressed from the textiles department to senior positions. CEO Jean-Marc Bellaiche emphasises that these appointments align with the company's commitment to enriching both French and international customer experiences.

IADS Notes: These appointments build upon Printemps' recent strategic leadership evolution, following February 2025's strengthening of the executive team with key appointments including Maud Barrionuevo and Jean Gasnier. The timing is particularly significant as the company has demonstrated successful transformation results, positioning itself for further growth and international expansion.

Printemps Group taps new executives for key roles

What: Liberty London marks its 150th anniversary with Seventy Five, a new restaurant concept blending modern British cuisine with arts and cultural programming in partnership with upscale caterers Goose + Berry

Why it is important: This development shows how historic retailers are leveraging their cultural capital to create unique dining experiences that complement their retail offerings while attracting new audiences.

Liberty London's launch of Seventy Five marks a significant milestone in its 150-year history, introducing a sophisticated dining concept that celebrates both culinary excellence and cultural heritage. Located on the second floor, the restaurant represents Goose + Berry's first standalone venture, bringing their expertise in upscale catering to a permanent retail setting. The menu showcases modern British cuisine, featuring locally sourced ingredients from Hampshire pork to Buckinghamshire honey. Beyond dining, Seventy Five embraces Liberty's artistic legacy through an arts and crafts-inspired afternoon tea created by head pastry chef Lizzie Ross, and innovative cocktails based on Liberty's fragrance collection. The space's design thoughtfully incorporates 19th-century artwork, Chinoiserie motifs, and Persian garden illustrations, while an artists' residency series, beginning with Sir Quentin Blake, ensures ongoing cultural engagement. This multifaceted approach demonstrates how heritage retailers can create distinctive dining destinations that honor their history while appealing to contemporary audiences.

IADS Notes: Recent developments in department store dining reflect a broader transformation in retail hospitality strategies. According to Business of Fashion in November 2024 , Harrods' revival of its Georgian restaurant with a £75 afternoon tea service demonstrates how heritage retailers are elevating their dining experiences to attract new audiences while honoring their traditions. The Retail Bulletin in December 2024  reported on John Lewis's partnership with Caffè Nero, showing how department stores are leveraging established hospitality brands to enhance their community hub status. Fashion Network's February 2024 coverage  of Liberty London's technological enhancements highlights how retailers are integrating digital solutions to create seamless experiences across shopping and dining. This trend toward experiential retail is further exemplified by WWD's March 2025 report  on Printemps NYC's strategy of prioritizing customer dwell time through multiple food and beverage venues. Liberty's new Seventy Five restaurant, with its focus on modern British cuisine and arts integration, aligns with this industry-wide shift toward creating distinctive dining destinations that complement the retail experience while celebrating brand heritage.

Liberty to open new British restaurant with ex-Da Terra chef

What: Madrid sees surge in office-to-residential conversions as developers capitaliSe on price differentials, with luxury residential space commanding nearly double the value of prime office space

Why it is important: This trend reflects a fundamental shift in urban property dynamics, where changing work patterns and luxury residential demand are reshaping retail districts in major cities.

Madrid is experiencing a significant transformation in its prime urban areas as office buildings are increasingly being converted into luxury residential properties. This trend, which began with Arcano's acquisition of EFE's historic headquarters in 2019, has gained momentum with over a dozen buildings now undergoing conversion in prestigious neighborhoods like Salamanca, Chamberí, and Justicia. The economic rationale is compelling, with luxury residential space commanding up to €20,000 per square meter compared to €10-12,000 for prime office space. While the most apocalyptic predictions about office space obsolescence haven't materialised, the trend reflects evolving tenant preferences for higher-quality spaces in prime locations. Major projects like María de Molina 50, acquired for €205 million by Grupo Lar and BlackRock, demonstrate the scale of this transformation, with plans for 158 luxury residential units and a 400-place student residence. This shift represents not just a change in property use but a broader evolution in Madrid's urban landscape.

IADS Notes: Recent market developments reveal a global trend in the transformation of commercial properties, particularly in prime urban locations. According to The Robin Report in March 2025 , major retailers are strategically reevaluating their real estate portfolios, with property values often exceeding operational retail value, leading to innovative mixed-use conversions. This trend is exemplified by Retail Gazette's April 2024 report  on the Fenwick department store transformation in London, where a £430 million investment is reducing retail space from 132,310 to 50,504 square feet while significantly increasing office space, demonstrating the economic drivers behind such conversions. Silive.com's March 2024 coverage  of the Monmouth Mall transformation in New Jersey shows how this trend extends beyond traditional retail locations, with the addition of 1,000 luxury apartments to existing retail space. The pattern is further reinforced by Fashion Network's February 2024 report  on the House of Fraser's £132 million Oxford Street revamp, where mixed-use development is seen as key to urban retail property revival. These developments parallel Madrid's office-to-residential conversions, where the potential to achieve €20,000 per square meter for residential space versus €10-12,000 for offices is driving similar transformations, suggesting a fundamental shift in how prime urban retail properties are being reimagined for modern use.

Luxury flats are eating up office space in Madrid

What: Levi's 99% shareholder vote against dismantling DEI efforts signals strong corporate resistance to anti-diversity pressure in retail sector.

Why it is important: The decisive shareholder vote demonstrates growing corporate resilience against anti-DEI pressure, contrasting with recent industry retreats and highlighting the evolving dynamics of social responsibility in retail.

Levi Strauss shareholders have delivered a resounding rejection of attempts to dismantle the company's diversity, equity, and inclusion initiatives, with over 99% voting against the proposal. This decisive stance comes amid mounting pressure to scale back DEI efforts across the corporate landscape, following President Trump's executive order targeting such programmes in the federal government and private sector. The vote mirrors a similar outcome at Costco earlier this year, where shareholders overwhelmingly supported maintaining DEI initiatives. This shareholder resilience stands in stark contrast to recent actions by major retailers including Walmart, Target, and Amazon, who have modified or rolled back their DEI policies. The timing is particularly significant as it demonstrates strong corporate governance in the face of growing political pressure, suggesting that some companies are choosing to maintain their commitment to diversity despite broader industry trends toward retreat.

IADS Notes: The retail industry's approach to DEI has undergone significant transformation since late 2024, with companies adopting varying strategies to balance social responsibility with business performance. While Walmart's November 2024 pivot to maintaining inclusion practices while modifying terminology proved successful, Target's contrasting experience in February 2025 resulted in substantial financial impact. The emergence of the FAIR framework in January 2025 offered retailers a new path forward, as demonstrated by Levi's and Costco's successful defense of their DEI commitments in early 2025. These developments highlight the industry's ongoing evolution in managing social initiatives while navigating complex political and market pressures.

Levi Strauss shareholders vote against proposal to end diversity programmes

What: "North America's oldest retailer plans separate auction for 2500 artifacts and 1700 art pieces, including Royal Charter, as part of broader restructuring strategy to maintain six remaining stores."

Why it is important: "This approach to monetizing cultural assets highlights the evolution of retail restructuring strategies, where historical collections become potential lifelines for maintaining core operations."

Hudson's Bay Company is seeking court approval to conduct a specialized auction of its historically significant art and artifacts collection, separate from its broader Sale and Investment Solicitation Process (SISP). The collection includes approximately 2500 artifacts and 1700 art pieces, with paintings dating back to 1650, alongside items such as point blankets, paper documents, and collectible Barbie dolls. The company has engaged Reflect Advisors LLC to facilitate the auction through a fine art auction house, emphasizing the need for specialized expertise in handling these culturally significant items. While the company hasn't specified the expected proceeds or their exact allocation, one potential use would be supporting the operations of its six remaining stores. This separate auction process demonstrates a strategic approach to monetizing heritage assets while acknowledging their unique cultural and historical value.

IADS Notes: Hudson's Bay's decision to auction its historic collection reflects the complex challenges facing retailers in restructuring. According to WWD in March 2025 , the company's entry into creditor protection came amid unsuccessful digital investments and post-pandemic shifts, leading to the need for significant asset monetization. WWD's additional March 2025 coverage revealed how the company's liquidation pressure affects 9,364 employees and includes e-commerce operations, providing context for the strategic importance of the art auction. Fashion Network's March 2025 report on the court-approved revised liquidation plan, which preserved six strategic locations, shows how the company is balancing asset sales with operational continuity. Inside Retail's March 2025 analysis highlighted that while management cited tariffs as a challenge, the company's difficulties stemmed from chronic underinvestment in store experience and customer service, suggesting the art auction represents a final attempt to generate value from historic assets while maintaining some retail presence. This approach to separating culturally significant assets from broader liquidation proceedings demonstrates the complex balance between preserving heritage and addressing financial imperatives in retail restructuring.

Hudson’s Bay Plans Artifacts Auction

What: Schroders' 85% stake value increase in Revolut reflects the fintech's successful expansion from travel app to comprehensive retail financial services provider.

Why it is important: The valuation increase validates the convergence of fintech and traditional banking, as retailers increasingly seek comprehensive financial solutions beyond basic payment processing.

Schroders' significant stake revaluation implies a $48 billion valuation for Revolut, marking a dramatic evolution in the company's market position. The 85% increase in stake value to £14.6 million reflects successful diversification into business banking, travel insurance, savings, and stock trading. This growth trajectory, strengthened by the July UK banking license acquisition, positions Revolut for further expansion as it hires additional banking staff. While the valuation remains below the $60 billion target some shareholders envision, it represents substantial growth from both the previous year's $25.7 billion and August's secondary share sale. The company's transformation exemplifies the growing market confidence in integrated fintech solutions that bridge traditional banking and digital innovation.

IADS Notes: The February launch of Wero by fourteen major European banks signals growing competition in digital payments, while Klarna's physical store expansion through Adyen demonstrates fintech's push into traditional retail. Sainsbury's June sale of core banking while retaining retail financial services highlights the strategic value of specialised financial offerings. The recent Visa-Mastercard $30 billion settlement underscores market demand for alternative payment solutions, particularly as mobile payments now account for 70% of global sales. Revolut's banking license positions it strongly in this evolving landscape, where integrated financial services increasingly drive retail success.

Revolut valuation nudges up to USD 48 billion,Schroders report suggests

What: Amazon's "Buy For Me" feature enables AI agents to purchase products directly from brand websites outside its ecosystem, marking a strategic shift to maintain its position as consumers' primary shopping destination.

Why it is important: This revolutionary departure from Amazon's closed ecosystem strategy signals a fundamental shift in retail, where AI-driven customer experience takes precedence over platform exclusivity, reflecting the industry's adaptation to changing consumer preferences. Amazon's introduction of "Buy For Me" represents a dramatic shift in the company's long-standing strategy of maintaining a closed ecosystem. This new feature allows AI agents to purchase products directly from brand websites when items aren't available on Amazon's platform, prioritising customer convenience over traditional transaction revenue. The beta programme, currently available to select U.S. customers, keeps users within the Amazon app interface while enabling purchases across external platforms. This strategic move positions Amazon at the forefront of AI-driven shopping, particularly significant as the company battles with OpenAI and others to control the future of shopping agents. The feature's implementation with brands like Rothy's demonstrates its practical application, allowing retailers to showcase their full product range to Amazon customers without listing their entire catalogue on the platform. This initiative reflects Amazon's recognition that maintaining its position as consumers' primary shopping destination is more valuable than protecting its traditional revenue streams.

IADS Notes: The launch of Amazon's "Buy For Me" feature in April 2025 represents a pivotal moment in retail's AI transformation journey. This development aligns with findings from January 2025 showing that 38% of global consumers were already embracing AI shopping tools, demonstrating perfect timing for Amazon's strategic shift. The feature's introduction follows a broader industry trend, where AI-influenced shopping reached USD 229 billion during the 2024 holiday season. Amazon's decision to break from its walled garden approach appears particularly astute given Accenture's revelation that 73% of consumers feel overwhelmed by online shopping choices. This move also validates Amazon Stores CEO Doug Herrington's January 2025 prediction that AI would spawn entirely new retail formats, with "Buy For Me" exemplifying this evolution. The feature's potential impact is further supported by Adobe's March 2025 report showing that retailers implementing AI solutions experienced 8% higher engagement rates, suggesting Amazon's cross-platform approach could set new standards for AI-driven retail experiences.

Amazon ‘Buy For Me’ is the latest entrant in the AI shopping agent race

What: South Korea's largest retailers initiate multibillion-won transformation of Myeong-dong stores, with Lotte emphasising Korean culture and Shinsegae focusing on luxury expansion.

Why it is important: The contrasting approaches of Lotte and Shinsegae demonstrate how legacy retailers are reinventing themselves to attract both luxury and youth markets, reflecting the broader polarisation in Korean retail where successful stores achieved 5% growth while others declined by 3.3% in 2024.

South Korea's retail giants Lotte and Shinsegae are engaged in an intense competition to dominate Seoul's Myeong-dong district through ambitious renovation projects of their flagship stores. Lotte Department Store's transformation includes shuttering its Young Plaza for its first major overhaul since 2003, creating a dedicated zone for trendy Korean products targeting Gen Z global shoppers. The company's broader vision encompasses upgrading its main flagship store, which has been ongoing since 2019, including luxury fashion zones, gourmet food halls, and the country's largest department store beauty hall.

Meanwhile, Shinsegae is pursuing its largest makeover in 12 years, focusing on expanding its luxury portfolio and premium dining options. The strategy includes transforming a former bank building into a luxury boutique centre. The competition reflects their market positions, with Lotte's Myeong-dong branch generating 2.05 trillion won in annual revenue, ranking fourth nationwide, while Shinsegae's store achieves 1.19 trillion won, placing tenth.

This rivalry exemplifies the broader trend in retail, where creating unique offline experiences has become crucial for competing with e-commerce platforms.

IADS Notes: The Myeong-dong competition emerges amid significant market changes, as revealed in January 2025 data showing department store growth falling below 1%. This challenging environment has prompted innovative responses, with Shinsegae's "House of Shinsegae" concept achieving 149.9% sales growth in June 2024 through luxury experiences. Meanwhile, Lotte's October 2024 announcement of a 7 trillion won investment plan demonstrates their commitment to modernisation. The strategic importance of these developments is underscored by February 2025 data showing Myeong-dong's remarkably low 4.4% vacancy rate compared to other retail districts, highlighting the area's resilience and potential for growth.

Landmark war in South Korea’s Myeongdong: Lotte, Shinsegae face off in flagship showdown

What: Major Japanese department stores report March sales declines ranging from 0.8% to 1.6%, driven by reduced tourist spending and weather-impacted seasonal merchandise performance.

Why it is important: The simultaneous impact of reduced tourist spending and weather-related challenges highlights the vulnerability of department stores to both international market dynamics and local seasonal factors.

Japanese department stores are experiencing a notable shift in their post-pandemic recovery trajectory, with major retailers reporting declining sales in March 2025. Isetan Mitsukoshi Holdings recorded the steepest decline at 1.6%, followed by Daimaru Matsuzakaya Department Stores at 1.2%, while Takashimaya saw a more modest decrease of 0.8%. The downturn is attributed to two primary factors: a significant reduction in tax-free sales, indicating decreased spending by international visitors, and poor performance in spring clothing sales due to unstable weather conditions. Tax-free sales, a crucial indicator of tourist spending, showed concerning declines, with Takashimaya experiencing an 11.5% drop and both Isetan Mitsukoshi and Daimaru Matsuzakaya reporting approximately 4% decreases. This performance marks a notable contrast to the sector's previous strength, suggesting potential challenges in maintaining the momentum that drove record-breaking sales throughout 2024. 

IADS Notes: The March 2025 sales decline reported by major Japanese department stores reflects a significant shift from the robust performance seen throughout 2024, when the sector achieved record-breaking duty-free sales of YEN 648.7 billion. While January 2025 showed promising growth of 5.2% year-on-year, the current downturn, particularly in tax-free sales (declining 4-11.5% across major chains), signals a potential cooling of the tourism-driven boom. This trend aligns with October 2024's observations of weather-sensitive domestic sales, where unseasonable conditions impacted seasonal merchandise performance. The varying performance among major chains continues to highlight the growing divide between urban and regional locations, a pattern that emerged strongly in late 2024 when major city stores grew 9.1% while regional locations declined 0.5%. The expansion of tourist purchases beyond luxury goods, noted in the current report, builds upon the sector's transformation documented in November 2024, suggesting a more complex and challenging retail landscape ahead.

Major Japanese department stores post lower sales in March

What: Chinese authorities mandate end to refund-without-returns policy on e-commerce platforms to protect merchants amid economic pressures.

Why it is important: This development demonstrates how economic pressures are forcing regulatory intervention in e-commerce practices that previously drove rapid growth.

Chinese authorities have directed e-commerce platforms to discontinue their refund-without-returns policy by July 2025, marking a significant shift in online retail practices. The directive, affecting major platforms including PDD Holdings and JD.com, aims to alleviate financial pressure on merchants during China's economic slowdown. This policy change follows protests at Temu's southern China office over its refund policies and aligns with the government's increased scrutiny of "involution-style" competition. The practice, which PDD expanded in 2021 and prompted competitors to follow, has become increasingly contentious as merchants across various sectors report significant impacts on their bottom line, losing both money and merchandise. The government's intervention through market regulators and the commerce ministry reflects growing concerns about the sustainability of aggressive e-commerce practices in a challenging economic environment.

IADS Notes: This policy shift comes amid broader challenges in China's e-commerce sector. In March 2025, PDD Holdings reported disappointing quarterly revenues despite aggressive discounting, while JD.com's strong performance in the same period highlighted the growing divide in platform strategies. The change follows significant protests in July 2024, when hundreds gathered at Temu's office to challenge its refund policies. These developments coincide with China's retail sales growth slowing to 2% in June 2024, suggesting that aggressive e-commerce practices may be unsustainable in the current economic climate.

Chinese e-commerce platforms to end refund-without-returns amid weak economy

What: Hudson's Bay Company announces liquidation of its final seven stores in Canada, including six own-brand locations and one Saks Fifth Avenue store, marking the end of its Canadian retail operations.

Why it is important: This final liquidation represents a significant shift in Canadian retail, demonstrating how private equity ownership focused on real estate assets can lead to the dismantling of historic retail institutions.

Hudson's Bay Company's decision to liquidate its remaining seven stores marks the culmination of a prolonged struggle for North America's oldest retailer. The announcement follows the company's March filing under the Companies' Creditors Arrangement Act, where initial hopes for a viable restructuring plan proved unsuccessful. The liquidation process, beginning April 25, will affect six Hudson's Bay locations and one Saks Fifth Avenue store, adding to the already ongoing sales at 73 Hudson's Bay sites, 13 Saks Off 5th locations, and two Saks Fifth Avenue stores. While the Sale of Investor Solicitation Process remains active until April 30, allowing potential bidders to withdraw stores from liquidation, the company has set firm closure dates, with Canadian operations ceasing by June 15 and nine Saks Off 5th stores closing April 27. This development represents the final chapter for a company that secured only limited debtor-in-possession financing, ultimately requiring a complete liquidation despite efforts to preserve jobs and maintain tenancy in retail locations.

IADS Notes: The liquidation of Hudson's Bay's remaining seven stores marks the final chapter in a complex retail transformation story. In March 2025, the company initially secured CAD USD 16 million in interim financing and attempted to preserve six strategic locations while initiating broader closures. However, the situation deteriorated rapidly, reflecting the consequences of private equity ownership that prioritised real estate assets over retail operations, accumulating nearly CAD USD 1 billion in debt. This approach mirrors a broader pattern in department store restructuring, where real estate monetisation often takes precedence over retail viability. The contrast between Hudson's Bay's Canadian operations and its US luxury division is particularly striking - while the Canadian parent company liquidates its final stores, its Saks Global division completed a USD 2.65 billion acquisition of Neiman Marcus in December 2024, demonstrating how different approaches to retail transformation can lead to drastically different outcomes in today's challenging retail landscape.

Hudson’s Bay to liquidate remaining seven stores

What: Macy's implements executive bonus clawback amid leadership changes and accounting discrepancies.

Why it is important: The situation highlights the increasing scrutiny of retail financial practices and the importance of accurate earnings metrics in executive compensation.

Macy's is implementing a significant clawback of executive bonuses following the discovery of accounting discrepancies that led to inflated compensation. The department store operator identified an USD 81 million overstatement in its 2023 earnings metric, resulting in excess bonus payments of USD 609,613 to executives by the end of 2024. While some funds have already been recovered, USD 352,093 remains outstanding as of April 1. The company's compensation committee has committed to recovering the remaining amount from affected executives. This development coincides with broader organisational changes, including the appointment of Thomas J. Edwards from Capri Holdings as the new chief financial officer. The accounting issues stem from an investigation that revealed a former employee had concealed more than USD 150 million in delivery expenses across multiple quarters, though the company confirms no missing cash or unpaid vendors were involved.

IADS Notes: The clawback of USD 609,613 in executive bonuses represents the latest development in Macy's ongoing financial oversight restructuring. This follows the November 2024 discovery of USD 132-154 million in hidden delivery expenses, which triggered internal investigations and delayed earnings reports. The situation has catalysed significant leadership changes, culminating in April 2025 with the departure of CFO/COO Adrian Mitchell and the appointment of Thomas Edwards from Capri Holdings. This transition in financial leadership, combined with the implementation of stricter accounting controls, demonstrates Macy's commitment to enhancing financial transparency and accountability as part of its broader transformation strategy.

Macy’s to claw back executive bonuses due to accounting discrepancies