What: The RealReal has opened a pop-up shop running until 28 February within Saks Fifth Avenue’s Brickell store in Miami.

Why it is important: Customers will have one-on-one access to The RealReal experts for complimentary valuations and consignment appointments. To reward customers for recirculating their luxury items, every first-time consignor at the Saks x The RealReal pop-up will also receive a USD 100 Saks gift card.

In addition, customers can shop for rare watches, coveted pieces, and one-of-a-kind jewellery.

Saks x The RealReal pop-up opens in Miami

What: Openpay inked an agreement with American Express to offer instalment payment options to participating health care and auto repair/maintenance merchants. The retailers will use Opy’s 2.0 version of buy now, pay later (BNPL) called “buy now, pay smarter (BNPS).”

Why it is important: While the BNPL payment method is currently challenged and criticized, the BNPS solution is supposed to differentiate from traditional pay-in-four BNPL plans thanks to fair, transparent and fixed fees.

BNPS method extends up to USD 20,000 with plan lengths of up to 24 months.

American Express Teams Up with Opy to Offer BNPL Options 

What: Facebook Hong Kong has launched its first pop-up store in the territory, introducing its ‘Your Profile, Your Home’ campaign. The pop-up store aims at educating consumers on how to personalise their experience using the Facebook app while maintaining their online privacy and safety.

Why it is important: Social media are challenged in many ways. In response, Facebook aims to teach customers the app’s privacy control and settings.

The store also houses Instagrammable spaces with interactive AR filters. An on-site quiz is also available for visitors to participate. Facebook Hong Kong pop-up store is scheduled to open until December 7.

Facebook opens in Hong Kong its first pop-up store in Asia 

What: The newly created digital arm of The Hudson Bay opens a first pop up in Canada.

Why it is important: It is all about brand recognition and equity to promote the Hudson’s Bay brand as a household name in North America.

The Bay, the e-commerce arm of The Hudson Bay, has opened a popup shop at the Canadian shipping container market, with brands such as Saint Laurent, Google, Herschel or Ugg. It is packed with tech solutions such as QR code scans to pay for purchases, Buy Now Pay Later services, etc..

It is aiming to be a thoroughly curated selection of gift ideas and probably as a way to increase the visibility of the Hudson Bay’s marketplace which has been launched early 2021. Hudson’s Bay also separated its e-commerce activities from brick & mortar in August this year. While Hudson’s Bay remains responsible for the stores, The Bay is in charge of brand direction, marketing, buying, planning and technology for both companies.

The Bay opens a tech-enabled holiday pop-up 

What: Coresight made its annual store tour to review Black Friday performances in the US and Canada.

Why it is important: Black Friday is now a worldwide event and seeing what is happening in the US is a good temperature check. In addition Coresight provide pictures of some stores.

Coresight undertook a store tour for the Black Friday in US and Canada, to see the key trends on the market. Overall:

• Frequency and magnitude of the deals were in line with previous years
• Stock levels were in general very strong, with a few exceptions due to logistical issues,
• Crowds were extremely heterogeneous, with stores packed and others empty,

Coresight considers that, even though traffic and inventory varied, even in the same stores in similar areas, the demand was healthy as there was a high degree of willingness to shop from customers, more than offsetting their fear of entering stores. For them, the impression is encouraging.

A detailed chart and some pictures allow to have an impression retailer by retailer.

Black Friday insights from the US and Canada 

What: Tesco is now selling data to advertisers.

Why it is important: Amazon racked in USD 25 bn of revenue with their ad business, and Tesco wants a similar business too. Department Stores should also take note.

Tesco, which is a pioneer in loyalty cards in the UK, has launched a media and insight platform in partnership with Dunnhumby. It is all about letting advertisers run targeted ads on its systems and letting them know which one worked.

Tesco is maximizing the insight it can gather from 20 m loyal customers, making the most of its leading retail position, and even delegating to suppliers the possibility to run their own analysis on their products performances.

Tesco Media & Insight Platform 

What: Unmanned stores are expanding in London.

Why it is important: While they are an obvious asset in a talent-short world, automated stores also need to convince the general public that they are a progress. The notion of data privacy is often mentioned.

The Economist follows up the opening of the new J Sainsbury automated store in London, the latest to open a checkout-free store in Holborn, and the first one to have Amazon’s “just walk out” technology license. It is the second time they have this initiative, as they already tried in 2019 during 3 months. In the same street, Amazon and Tesco have also opened unmanned locations.

Customers need a QR code to enter the store, but then, once inside, they just have to place items in a bag and walk out, thanks to sensors and cameras which enable the retailer to invoice the right articles directly on the customer’s credit card account. While some believe that this is the future for retail, especially in rural areas where cost of staffing is high, the English newspaper also echoes opinions from customers who remain to be convinced.

The pandemic tech boom is reshaping our cities

What: The Korean capital city is the first one to enter the Metaverse with a selection of services that can help in real life.

Why it is important: There is a first entry dividend in entering the Metaverse quickly, and department stores should take note.

The Seoul Metropolitan Government has announced it was planning to enter the Metaverse by creating a virtual ecosystem for all areas of its administration.

It is expected to be completed by 2023 as part of South Korea’s Digital New Deal and will feature a virtual city hall with “avatar public officials” which will consult members of the public and allow them to engage with the government in ways currently only available in the physical city hall, such as making complaints.

Services for the socially vulnerable (safety, convenience) will also be available. Finally, a Virtual Tourist Zone will engage prospective visitors by introducing them to virtual reproductions of the city’s tourist destination and landmarks. Finally, festivals, such as the Seoul Lantern Festival, will also be held virtually, extending the audience to potentially the whole world.

Seoul will be the first city to enter the metaverse

What: Streamed live from a private suite, some actress hosted a White Elephant party. Before the event, each guest received a party-in-a-box with game instructions to participate in the party.

Why it is important: Dedicated to selected guests, the event was accessible both online and in store.

During the game, party guests were able to preview and win some of Neiman Marcus' gifts that were also available for purchase. In addition to the assortment featured in the White Elephant party game, Neiman Marcus Style Advisors were personally available to offer hand-picked product suggestions.

Neiman Marcus extended the event across all 37 stores as select customers were invited to join the luxury retailer for exclusive, invite-only White Elephant parties hosted in their gifting suites and private restaurant spaces.

Neiman Marcus Hosts The Ultimate White Elephant Party 

What is it: A perspective on the battle between Amazon and Walmart.

Why it is important: Each one is moving towards omnichannel as fast and efficiently as possible. One from online, the other from stores.

According to an article in The Economist, and indeed, the many reports posted by IADS online, Walmart has fared well recently. Thanks to its size and reach, it has chartered ships in order to cope with recent supply chain problems and added 200 000 jobs to its 2.3 million workers in the last few months in spite of labour shortages. However, analysts are showing scepticism. They still prefer Amazon, of course, but also Target and Home Depot. Are analysts missing a turnaround story or is Amazon really a threat to Walmart?

The Walmart turnaround consists of two main elements:

• Its stores which hoppers are beginning to return to, and its efforts online with the Walmart+ subscription service. It is introducing new brands as well as improving delivery through its Spark network.
• It is also addressing the lower profits problem of online by attracting third-party merchants, adding an advertising business and developing fintech.

The question is whether these measures will be enough to save it from Amazon when Amazon is growing its distribution centre network at an incredible rate. It is already larger than Walmart’s and is due to double with another 140 million sq ft. The idea is to shrink delivery times so much that customers will have no incentive to go to stores. Walmart’s defence for the moment is that half its sales are from groceries which are mostly bought in stores, while Amazon’s Wholefood and Fresh supermarkets have been a disappointment so far.

Walmart bites back

What: The furniture company is opening its first two store-within-a-store experiences in Fenwick’s Newcastle flagship department store and the chain’s Bentalls store in Kingston.

Why it is important: The retailers believe that this type of collaboration is an excellent route to sustainable growth. It allows both brands to extend their offer in relevant ways, bringing the benefits of each brand to the customers of both.

Two North East retail giants have joined forces to create the ultimate shopping destination for customers.

Furniture retailer Barker and Stonehouse, based in Stockton, is opening its first store-within-a-store concept in Fenwick’s Newcastle flagship department store and the chain’s Bentalls store in Kingston. The new Newcastle concept store will have 10,000 sqft of retail space, with the Bentalls store slightly smaller.

Set to launch before Christmas, there will also be a selected range of high-quality furniture and accessories from Barker and Stonehouse, with a focus on inspirational styling across the new-look floor to give customers plenty of ideas for their own homes.

North East retailers Fenwick and Barker and Stonehouse launch new store concept 

What: An opinion piece on the performance of pure players in the US, which is less impressive than the one of traditional retailers learning fast.

Why it is important: Stores act as a billboard for a retailer’s website, while online-only rivals are forced to pour money into adversiting.

Coresight founder, Deborah Weinswig, reviews the performance of pure players in the US in 2020 and 2021 compared to the multichannel retailers’ one.

The latter had their online sales growing considerably faster than the biggest online-only rivals, including marketplaces. As a result, the online-only retail segment is losing aggregate share to the multichannel rivals:  the 10 biggest online retailers include now Best Buy, Home Depot, Kroger, Target and Walmart.

Coresight sees little reason for this pattern to change in the future, as customers will be probably keeping on looking for omnichannel services, including BOPI, curb side pickup and in-store returns.

Are digital-first retailers losing the battle for online shoppers? 

What: Walmart is extending its safety net to employees in the wake of the new covid-19 variant expansion.

Why it is important: In these times of retail talent shortage, such a policy is a wonderful PR stunt aiming at attracting the best people looking for care and attention.

Walmart has decided to extend its Covid leave policy through March 31, 2022, in front of the Omicron variant. It provides 2 weeks of paid time off if an associate contracts Covid-19, or if the associate has to quarantine for whatever reason.

In addition, Walmart maintains its vaccination incentive, by granting USD 150 to each associate who becomes fully vaccinated. 90% of the HQ staff is vaccinated now, and vaccines at available at Sam’s Club and Walmart pharmacies across the country.

Walmart extends COVID leave policy, brings back vaccination incentives

What: Forever 21 has found a new perch at JCPenney.

Why it's important: The move is intended to draw more teens and young adults to the retailer and bolster its cred as a “generational shopping destination.”

Forever 21’s assortment at J.C. Penney will include tops, bottoms and dresses that are “rooted in West Coast style and composed of new, neutral must-haves and trending design aesthetics like lush velvet and chic floral.

Forever 21 Landing in J.C. Penney

What: The Dillard’s 83-year-old department store business skyrocketed over 300% this year, making it one of the best-performing stocks on 2021.

Why it is important: The market capitalization of the 280-store chain has quadrupled to more than $5 billion since Jan. 1, far outpacing gains seen by much larger chains like Macy’s (up 138%), Kohl’s (up 25%) and Nordstrom (down 33%).

The Little Rock, Arkansas-based Dillard family – who own 7.5 million shares, giving them a 39% stake in the company – have seen the value of their shares go as high as $3 billion in November, up from $400 million a year earlier.

Dillard’s was founded in depression-era America by William T. Dillard, who got his introduction to the retailing business when he went to work at his father’s general store at age 12. After collecting a bachelor’s degree at University of Arkansas and an MBA from Columbia, he borrowed $8,000 from his dad to open his first store in Nashville, Arkansas in 1938. Before long, Dillard was opening stores all over the South, often in shopping malls, which were quickly gaining popularity among suburbanites. The chain went public in 1969, offering two classes of stock, meant to keep the family firmly in control. Five decades later and the company is still run by the family.

Analysts view Dillard’s as one of the survivors of the department store consolidation trend, as the founding family is very much still involved. Although Dillard’s stores may be considered old-fashioned, they are well cared for with a lot of attention to detail.

How A Sleepy Southern Chain Became One Of The Pandemic's Top Performing Stocks

What: Sales at the 31-year-old South Korean retailer’s luxury outpost in Seoul’s reached KRW 1 trillion (around USD 844 million) for the first time.

Why it is important: By the end of November, sales had grown 31% year-on-year, with revenues from luxury goods generally up 49%, and luxury jewellery and watches up 67%.

Sales from VIP customers, which make up more than 40% of Galleria’s luxury goods sales, were up 49% from 2020. The company attributes this growth partially to the introduction of arts and lifestyle experiences, including art sales.

Galleria Department Store’s Annual Sales Hit 1 Trillion Won Mark 

What: J.C. Penney continues to deepen its relationship with Authentic Brands Group as the company unveils its exclusive new collection “Sports Illustrated for J.C. Penney”.

Why it’s important: Penney’s held a half-time fashion show to unveil its new collection during the Sports Illustrated Awards in Florida. The athletic-themed lifestyle collection for men, women and children will hit Penney’s stores on Jan. 6.

ABG and J.C. Penney teamed up in September to launch the “Juicy by Juicy” Couture collection of women’s and children’s apparel, footwear and accessories. Forever 21 is expected to be added to the mix later this month with additional ABG brands coming on board next year.

Penney’s to Launch Exclusive Sports Illustrated Collection

What: A new, well document article on the ultra fast fashion phenomenon Shein.

Why it is important: Shein shows that new business models can successfully compete in the fashion segment, which is a point not taken for granted by investors and bankers. It also shows that new players can acquire a dominant position in a very short period of time provided it has the right production and business model, as well as the adequate price point.

The Financial Times follows suit after BBC and The Economist and explores the business model of Shein, the Chinese ultra-fast fashion phenomenon that is rapidly growing market shares in the West. Based on a low price range (only Primark has lower average retail prices), ‘test and repeat’ approach with algorithms evaluating in real-time the success of some 6,000 daily new items launched in small batches, Shein grew its market share from 13% in January 2021 to 28% in June 2021, even surpassing Zara (20%) which used to be the uncontested leader. One must say that Shein made some fruitftul bets, especially by focusing on TikTok instead of Instagram. In addition, Shein benefits from a local ecosystem of suppliers able to sustain its demand on short series potentially being expanded provided the demand grows, as well as the capability to ship internationally without being affected by international taxes and duties thanks to its very low retail prices.

The FT focuses as well on the environmental issues that Shein is facing, even though it denies any wrongdoing, but most importantly, concludes on the fact that the rapid rise of such a prominent actor in such a short period of time implies that other or more disruptive players might very well appear on the fast fashion segment in the future, further increasing the competitive pressure.

Shein the Chinese company storming the world of fast fashion

What: Iguatemi opens a popup to display the brands it sells in its own digital channel, at the heart of its stores.

Why it is important: Following the need to go omnichannel, Iguatemi is testing its own capabilities (logistics, product management, etc..)

Iguatemi, the largest luxury brands operator in Brazil and which also operate department stores, has open an e-commerce brick & mortar store, called Iguatemi 365, spanned over 555 sqm within the Iguatemi Sao Paulo store.

It displays the whole online offer, including 62 brands (Re/Done, Chiara Ferragni, Smythson and others) of which 18 do not have a physical presence in Brazil. According to the CEO, this launch aims at delivering the excellence of the Iguatemi experience across all channels.

Iguatemi Has Opened E-commerce Brick-and-mortar Pop-up in São Paulo

What: Neiman Marcus CEO publicly stands against the US e-commerce split-up trend.

Why it is important: So far, only analysts and media took position against what is a wave propelled by activist investors, eager to generate signicant ROI out of an industry seen as belonging to the “old world” by investors sandards.

During an investors’ call, Geoffroy Van Raemdonck, CEO of Neiman Marcus, dismissed the idea of considering an e-commerce split from the main department store activity, joining in saying so the likes of media such as Coresight, Financial Times or Forbes. While Macy’s or Kohl’s are under pressure from activist investors to consider doing so, Neiman Marcus has the luxury of being private and therefore being spared the pressure.

Even though the Saks Fifth Avenue precedent allowed them to secure $500m in private funding, the move is perceived by analysts as being mainly financial, and, for this reason, potentially creating operational hurdles. Van Raemdonck sees the move as potentially interfering with the smooth integration of all customer channels.

Neiman Marcus Group pushes back against e-commerce split 

What: WWD takes stock of the 2021 edition of MAPIC, which was held physically for the first time since the beginning of the pandemic.

Why it is important: The opening keynote, held by Philippe Houzé, was all about putting people first, delivering experiences, rather than focusing on profits in a context where competition comes from everywhere.

This year’s MAPIC welcomed a third of its 2019 traffic, and was all about mixed-use developments, combining shopping with offices, hotels, restaurants, gaming and other digital experiences. Eric Costa, CEO fo Citynove (the real estate division of Galeries Lafayette) explained that the cookie-cutter retail strategy is now over: it is all about being able to integrate the retail surface into something bigger.

International retailers (New West End Company, McArthurGlen Group) all mentioned that footfall is stabilizing (at a lower level than 2019 – and it will stay like this until international tourism reopens), with an uptick in terms of average basket, allowing to reach 70% of their pre-pandemic sales.

However, the weight of international travellers (30% of the traffic and 65% of sales in the case of New West End Company) makes that everyone is longing for their return, not expected before the second half of 2022.

Another trend currently taking place is the fact that people are not shopping anymore by necessity, but by pleasure: retailers even talk of shopping resorts replacing shopping malls. This means that people need to feel relaxed and well, meaning that more space might have to be allocated, as explained by Eric Costa, for whom retail shifts from a transactional model to one that builds relationship with people. The Galeries Lafayette Group announced that 2,000 sqm would be dedicated to health and well-being in the basement of the Haussmann store next year.

In Commercial Real Estate, Experience Matters

What: Sears used to be the most important department store chain in the US and is now being stripped away.

Why it is important: Once flamboyant department store buildings are kept for their symbolic and sociological function, but repurposed. Some IADS members have shown that they were also ready to repurpose some of their stores (even partially in the same building) to follow the trend while also reduce the operational losses.

Sears which for decades covered the USA with its properties, including the highest tower in Chicago (which does not bear its name anymore today) and used to be the largest department store chain in the 80’s, now is operating only a combination of 35 stores and a website. Every month or so, they are announcing store closures, including the last store in Illinois, its home state, in November 21.

They are now selling their former stores to developers, who are repurposing the buildings instead of destroying them, after buying them on average at a price of $64 per sqm. This is due to either the lack of financial benefit to destroy the stores and rebuild them, or, more simply, due to the will to preserve the architecture and make the most of their structure, location and accessibility. New fates of these stores can include housing medical offices and apartments in a shopping district, with the calculation that patients’ relatives can go shopping while waiting, or even a weapon production plan near a US army fort.

Sears, Struggling to Sell Goods, Markets a Valuable Asset Real Estate 

What: After Kohl’s underperforming stock, shareholders are pushing the department store to either split off its e-commerce and legacy store operations into two companies or sell itself.

Why it is important: HBC retailers have all gone through such separations, so the suggestion is not unprecedented, but how its affecting their operations remains to be seen.

An e-commerce spinoff entails severing the retailer's online and brick-and-mortar operations while keeping its brand and customer experience intact.

This has become a favored tactic among financial pros these days, at least when it comes to department stores.

While financial wizards are keen on the idea, many analysts and retail experts are not, citing the difficulty of two companies maintaining seamless branding, merchandising and fulfillment as demanded by the customer. If you take Walmart and Amazon for example, it seems that they are spending more time integrating their online and offline operations.

Hedge fund pushes Kohl's to consider e-commerce spinoff 

What: Indian retail giant is accelerating in the e-commerce world to become the equivalent of Alibaba in the country.

Why it is important: Reliance Retail is building up a full digital ecosystem including apps and software, which might very well generate the ideal context for new disruptive brands to appear there, just like how Shein emerged from a similar context in China.

Reliance Retail, which is focused on the Indian middle class (30% of the total Indian population) is in the midst of a shopping spree through various acquisitions of start-ups and B2B solutions to leverage whatever portion of the middle class wallet size. Its strategy is to combine traditional retail in top tier Indian cities, and partner with smaller stores or merchants in the tier 2 and tier 3 through its omnipresence in the Indian e-commerce world. As such, it places itself directly in competition with Amazon or Alibaba, by being at the same time a direct retailer and a wholesale marketplace.

Reliance Retail's Covid strategy is to further boost its e-commerce reach