News
Harvey Nichols’ latest Companies House filing
Harvey Nichols’ latest Companies House filing
What: Sales dipped 2.9% to GBP 222 million in the 12 months to March 30, 2020, just as the COVID-19 pandemic began taking its toll on business.
Why is it important: Due to substantial investments in e-commerce and online operations, the retailer’s EBITDA was down 48% to GBP 7.2 million pounds in the period.
The consolidated results pertain to all Harvey Nichols stores in the U.K. and the Republic of Ireland, including the Knightsbridge flagship. The results also include franchise income from the group’s six international stores in Dubai, Riyadh, Kuwait, Doha and Hong Kong, which operate under license.
The group described the 12 months to March 2020 as a “challenging year” due to a variety of factors. Although Harvey Nichols was forced shut in the final weeks of its financial year, the temporary closures, and a lack of international tourists, still took a bite out of sales.
During the 2019-20 fiscal year the company invested further in its IT infrastructure and CRM program, and introduced a Fragrance Room to the Knightsbridge flagship. Harvey Nichols said it would continue to invest in its online channels and stores to ensure that it can drive profitable growth going forward.
In fiscal 2019-20, online sales grew 33% compared with the previous year, and the trend has continued into fiscal 2020-21. Harvey Nichols said online sales grew a further 69% in the 12 months to March 2021.
Harvey Nichols Emerges From Tough Year of COVID-19 Damage, Investment
Harrods welcomes fashion rentals
Harrods welcomes fashion rentals
What: The department store partners with My Wardrobe HQ for a pop-up and an online offer.
Why is it important: Rental is becoming increasingly common, after MYWHQ popping up at Liberty last year and Selfridges offering an in-house rental service as part of its wider Project Earth initiative.
Harrods said the pop-up will stock a “highly curated” edit of formal and event pieces as people return to socialising. The pop-up will be located on Harrods fourth floor and on MWHQ’s own website. Customers also have the option to purchase the pieces.
Alongside rental, Harrods has also introduced after-care and bespoke services designed to prolong the lives of luxury items. Harrods offers a bespoke alterations service, an in-house cobbler at Shoe Heaven on the fifth floor, and also houses The Restory, which specialises in cleaning and repairing accessories.
MWHQ got a publicity boost last month after Carrie Symonds, Prime Minister Boris Johnson’s wife, wore a series of rented outfits and accessories to the G7 summit in Cornwall, England.
Harrods Welcomes Fashion Rentals With My Wardrobe HQ Pop-up Shop
Walmart opens chiropractic clinics in stores
Walmart opens chiropractic clinics in stores
What: Walmart is teaming up with a dedicated chain of clinics to propose chiropractic care in stores
Why it is important: Health services in stores is a growing trend for retailers to increase their proposal and make sure stores remain at the centre of customer’s lives. Walmart is accelerating fast on that matter.
Walmart is partnering with The Back Space, a chain of retail health care centres, to open in 10 stores health services. Customers will have the possibility to enjoy USD 25 treatments on a walk-in basis, but also through a monthly membership.
The goals of this pilot is to validate customers’ interest for such an offer, before deploying more in case it is successful.
Retailers are increasingly considering health care services in stores (see our Monoprix review , this article on mental health or Walmart telehealth venture) as a way to put stores at the centre of customer’s lives and give reasons to come back often.
Chiropractic Clinics Opening Within Walmart Stores
Louis Vuitton launches Mexican e-commerce
Louis Vuitton launches Mexican e-commerce
What: The luxury brand is joining a rush of brands launching their own e-commerce sites in Mexico, including Cartier, Bulgari and Boss.
Why is it important: Louis Vuitton is hoping to profit from growing luxury sales as Latin America’s second-largest economy exits the pandemic.
A wide selection of collections including ready-to-wear for men and women, leather goods, shoes, accessories, travel, fragrances, and jewellery will be available to Mexican customers.
The brand will also offer personalized services such as hot stamping and engraving. Free delivery or store pick up through Click & Collect will be available, including at its flagship store in Mexico City’s.
Louis Vuitton Launches E-commerce Site in Mexico
France to require proof of Covid vaccination to enter shopping malls
France to require proof of Covid vaccination to enter shopping malls
What: People will have to show proof of vaccination or a recent negative Covid test to enter shopping centres and restaurants in France starting in August.
Why is it important: The new regulation might have an important impact on traffic and sales, pushing further customers to shop online.
Starting 21 July, people over age 12 will be required to show proof of vaccination or a recent negative COVID-19 test to enter concerts, theatres and amusement parks in the country. In August, the requirement will be extended by law to cafés, restaurants, shopping centres, hospitals and retirement homes as well as airplanes, trains and buses for long trips. The government will consider extending the requirement to other activities, depending on how the situation evolves.
Macron also announced that workers in hospitals and retirement homes will be required to get a vaccination by 15 September or face sanctions, which were not specified.
France to Require Proof of COVID-19 Vaccination to Enter Shopping Malls
Farfetch partners with ThredUp on clothing donation service
Farfetch partners with ThredUp on clothing donation service
What: Farfetch has partnered with ThredUp to offer a donation program.
Why it is important: As resale gathers steam, Farfetch is committed to become more and more circular.
Farfetch is offering its customers a “clean out kit” from ThredUp where they can fill up a bag with gently used items that will then be resold. 50% of the profits will be donated to charity. Any remaining payout will be given as a Farfetch shopping credit.
This partnership is the first time that ThredUp’s “clean out kit” will allow a retail-as-a-service partner to use its white label offering.
Farfetch, ThredUp partner on clothing donation service
Debenhams to grow in Middle East
Debenhams to grow in Middle East
What: Boohoo partners with Kuwait’s Alshaya to grow Debenhams in the Middle East.
Why is it important: The Debenhams brand has been popular in the region so this is a great opportunity to develop both Debenhams and Boohoo.
Alshaya, a franchise operator which runs Debenhams stores in shopping malls, will have exclusive rights to operate the stores and a local e-commerce platform in Kuwait, Saudi Arabia, the United Arab Emirates, Bahrain, Egypt, Oman and Qatar.
Boohoo’s says it seeks to work with strategic wholesale partners in key regions to extend its reach. The Alshaya partnership will see Boohoo brands in Debenhams stores from the fourth quarter of 2021 and on a new local online platform across the Middle East from early 2022.
Boohoo Partners With Kuwait’s Alshaya To Grow Debenhams in Middle East
Japanese department stores brace for spectator-free Olympics
Japanese department stores brace for spectator-free Olympics
What: Ahead of the Olympics, Tokyo enters its fourth pandemic-related state of emergency.
Why is it important: As borders are closed, department stores Matsuya and Isetan are developing omnichannel strategies to engage with local customers and try to benefit from the Olympics anyway.
The government is asking that department stores, bars and restaurants close by 8 p.m. and do not serve alcohol. With the country’s borders now closed, department stores are getting creative with how they appeal to domestic customers.
Matsuya Ginza has started online customer service, not only sales, but also showing what is going on in the store. Efforts are put in e-commerce and delivery services for cosmetics and food by taxi and bike. For the overseas customers, the retailer does live commerce through WeChat. Matsuya do not do direct Olympic-related campaigns, but will offer special events relating to Japanese culture such as Pokémon events. They will also sell sets of food and drink for the people watching the Olympic Games at home.
Isetan Mitsukoshi is taking similar measures. In November the company launched a remote shopping app designed to provide customers with an in-store shopping experience online. The app includes a chat feature, the ability to consult with sales staff via video, and even a payment platform. They are also publishing content that addresses customers’ interests: for instance, buyers introduce curated product selections. For its fiscal year that ran from April 2019 through March 2020, Isetan Mitsukoshi’s online sales were around JPY 20 billion. For the following year, they grew to JPY 31.5 billion.
Japan’s Retailers Brace for Spectator-free Olympics
Inside Neiman Marcus’s USD 500 million tech investment
Inside Neiman Marcus’s USD 500 million tech investment
What: Vogue Business sat down with the new EVP leading the investment.
Why is it important: The American retailer is hoping that personalisation, faster delivery and tech-enabled stores will enhance its value to customers.
Neiman Marcus plans to spend the sum during the next three years on new tech, updating its stores and speeding up deliveries. Bob Kupbens, Neiman Marcus Group’s new EVP and chief product and technology officer is leading the investment. He will be working with the e-commerce team, the “Connect” app and the innovation team.
Technology to improve personal relationships with customers is key, making services such as recommendations, one-to-one communications and store visits better, faster and more scalable. Crucially, it’s the top clientele who are set to benefit. The goal is what the company calls “integrated luxury retail”, which translates to personalised services for a small subset of customers, says Kupbens; 40% of the retailer’s business is from customers spending more than USD 10,000 a year, and about 35% of the group’s revenues comes from the retailer’s credit card holders.
In June, NMG announced it was acquiring Stylyze, a software company that uses machine learning to make outfit recommendations based on what customers have looked at or purchased. Neiman Marcus has worked with the company since 2018, and integrated it into NM Connect, the proprietary tool introduced two years ago that associates use to communicate with customers. That’s a huge competitive advantage as customers don't want to wade through thousands of products, they want more curated selections. Two months after the technology was rolled out to nearly 5,000 associates, it resulted in USD 60 million in incremental sales.
Stylyze uses machine learning to understand products and then find similar or coordinating items. It helps associates scale their capabilities to make product and outfit recommendations. This technology has the potential to be combined with proprietary customer data, such as location, shopping habits or preferred brands, to generate personalised experiences and offers. Even in store, an associate could use the software to fill a dressing room with client favourites, or make coordinating recommendations. The group currently uses Stylyze’s technology in remote and digital selling, but plans to integrate it into e-commerce, mobile apps and one-to-one messaging channels like text and chat. Stylyze is a first of “several future investments”, according to the company.
Kupbens rejects the notion of tech for tech’s sake. “There are a lot of really gimmicky things that I just reject — like I don't want a bunch of screens in a store for the purpose of having screens. I don't want facial recognition. I'm very much in the service of the customer experience, and whatever is going to make that seamless.” Going forward, he may offer the ability to log into an app in store to access extra information or experiences that require identifying the customer, similar to the types of perks found online.
Inside Neiman Marcus’s $500 million tech investment
Nordstrom CTO on AI-powered analytics and consumer insights
Nordstrom CTO on AI-powered analytics and consumer insights
What: Edmond Mesrobian, Nordstrom’s chief technology officer and chief information officer participated in VentureBeat’s Transform 2021 virtual conference.
Why is it important: As customer service is Nordstrom’s bedrock, Mesrobian shared how the department store revamped its data infrastructure in ways designed to enhance customer experience.
Nordstrom Analytical Platform (NAP) is a real-time, event streaming–centric analytical platform that provides insights on everything from customer services to credit. Reflecting on the start of this project, Mesrobian said that the most important thing is to remember that presenting the information is not about reporting data, but about collecting events that can be translated into actions.
Nordstrom starts by getting the business events created, organized, and streamed in real time. Then the multi-layered analytical models translate the events into predictions that lead to customer benefits and services. NAP employs open source technology and cloud computing, stitching existing components together to create an analytical platform that drives machine learning in a robust way.
“We want to transfer the responsibility from the data engineers in the past … to the application owners to make sure that their business events were pure, curated, and correct to begin with, and [they are] also aligned with their business goals,” Mesrobian explained. The shift in responsibility, he said, is key to the platform architecture process.
Nordstrom collects user preference information and employs it to provide better selection, better dynamic looks, better style boards, better choices, and so on. Through AI, the company presented a more robust way of driving discovery and personalization. Nordstrom also launched a fashion map effort to take a natural language-based approach with deep learning so that the model gets to know customers better through conversation, as opposed to keyword searches.
When building an analytical platform, Mesrobian pointed out that it is important to keep in mind that data is not the crucial aspect: so the platform actually has to make predictions rather than presenting raw information. An important point is also to make sure that the systems are wired from the store with privacy and security in mind, so that the analytics take into account both the business event and the privacy impact of customers.
Nordstrom CTO on AI-powered analytics and consumer insights
Liberty hit hard by Covid
Liberty hit hard by Covid
What: The department store has filed its results for the year to the end of January and said that it was "significantly impacted" by the three separate Covid lockdown in the UK.
Why is it important: The company saw strong growth online, thanks to brand new customers, in all categories, especially in beauty and home.
It meant the flagship was closed for almost six months of the financial period and even when it was open, restrictions on movement meant that both domestic and international tourists stayed away. Meanwhile, the office workers on which it can usually depend in London's West End were also staying at home.
That said, Liberty Online benefited from the lockdown and the company said it showed strong revenue growth year-on-year.
Looking at the numbers, total revenue fell to GBP 55.768 million from GBP 93.138 million a year earlier. Sales per square foot, including concession revenue, at its flagship store fell to GBP 358 from GBP 1,309 as the impact of the store closures kicked in.
EBITDA before non-recurring and one-off items, was a loss of GBP 12.588 million from a profit of GBP 14.442 million a year earlier. But while the company made a pre-tax loss of GBP 1.322 million, that was better than the loss of GBP 6.696 million a year earlier. And it managed a net profit of GBP 2.522 million, again, much better than the loss of GBP 8.342 million a year ago.
Liberty hit hard by flagship Covid closure but online booms
American Dream Mall finally opens its luxury wing
American Dream Mall finally opens its luxury wing
What: The largest mall in the US finally comes to completion
Why it is important: The luxury section, initially intended to make the most of international tourism, is now addressing local communities and neighbouring states.
The American Dream mega mall, which opened in 2019 just before the Covid-19 pandemic, finally comes to completion by opening its luxury section, called the Avenue, a year or so after its planned opening date. It will include Saks Fifth Avenue (reported here) as well as international brands (Hermes, Saint Laurent, Tiffany, Dolce & Gabbana, Mulberry…). The 30,000 square meters wing is currently leased at 70%, as some significant tenants which signed up at the beginning simply disappeared in the meantime (Lord & Taylor, FAO Schwartz, Barney’s).
Speculations on the fate of this mega-mall in a post-pandemic world have gone for some time now (read this report from the New York Times in December 2020) and initially intended to draw international tourists. Due to the Covid-19 pandemic, it has adjusted its offer, to a total of 45% retail and 55% entertainment, to better address the local communities and neighbouring states (Pennsylvania, New Jersey, New York, Connecticut, Florida, Ohio).
Bed Bath & Beyond opens a redesigned flagship
Bed Bath & Beyond opens a redesigned flagship
What: The revamped flagship is the first iteration of the new Bed Bath & Beyond concept
Why it is important: Gone are the days when presenting products in a warehouse-like atmosphere was enough. This new concept acknowledges the need of experience and services as a very basic expectation of the post-pandemic customer.
The first iteration of Bed Bath & Beyond new concept has been launched in New York, in a 920 sqm space which is radically different from the way the retailer was previously selling its products.
The customer experience is based on immersion and ability to try and save time, through an interactive vacuum display, a “scan and buy feature”, the usual set of fulfilment options (BOPI, kerb side pickup, same-day delivery). It also emphasizes the presentation of its own private labels (of which six of them have been launched this year), and completes the experience with the appropriate set of F&B options.
This new experience takes distance with the previous concept which stacked products and cluttered stores, an approach which affected Bed Bath & Beyond competitiveness. The retailer plans to invest USD 250 million to remodel 450 stores in the coming 3 years.
Bed Bath & Beyond to open redesigned NYC flagship
Google reveals commerce-related updates
Google reveals commerce-related updates
What: Google expands on its commerce business, including a new YouTube live shopping beta.
Why is it important: YouTube, which boasts that its massive userbase of more than 2 billion people accounts for nearly a third of the internet, is poised to be Google’s best weapon in the battle to dominate social or video commerce.
Google revealed new retail efforts, including a beta program for YouTube livestream shopping and updates to help retailers reach deal-hunting shoppers. So if you’re watching a supported livestream on YouTube, you can now browse and shop products in real time, without interruption.
The news arrives at a pivotal moment for social commerce, as Facebook, Instagram, Snapchat, Pinterest, TikTok and more have been looking to dive deeper into online shopping trends, including live shopping, augmented reality try-ons, shopping with friends and other initiatives.
Social media companies see a cash cow in social media shopping, though it doesn’t come without risks — namely, undercutting the appeal of the very influencers who power these platforms, their popularity and their commerce bids. In essence, if all they become are product pushers, it’s hard to imagine fans will continue to follow, like and subscribe at the same levels./nbsp]
YouTube also revealed a new monetization tool this week. Now available broadly as a beta feature, Super Thanks allows fans to applaud — read: tip — to show appreciation for single uploaded videos, ranging from USD 2 to USD 50.
Google also revealed new search and Google Shopping updates targeting bargain shoppers and amplifying seasonal promotions. For instance, companies can set public promotions so that they only apply to first-time customers, as well as distinguish specific deals for indexing via organic traffic, which is free, versus paid listings.
Google Reveals Commerce-Related Updates
Harvey Nichols launches a childrenswear section
Harvey Nichols launches a childrenswear section
What: A refurbished category at Harvey Nichols which gets rid of its historical operator
Why it is important: Harvey Nichols was late on managing directly a key category and a significant contributor to margin.
Harvey Nichols has announced the launch of its childrenswear section in its stores and online, including 25 brands and more than 700 items, covering customer needs form newborns to teens, both on casual and occasion wear.
This is the first time that Harvey Nichols ventures in this category directly without delegating it to a specialized operator. The offer will be available at the Knightsbridge, Manchester, Leeds and Edinburgh stores.
Harvey Nichols launches its first ever childrenswear range
Harvey Nichols to launch kidswear department
PayPal to better serve small omnichannel business
PayPal to better serve small omnichannel business
What: PayPal has announced the introduction of PayPal Zettle in the U.S., a digital point of sale solution that will allow small businesses to seamlessly sell across in-person and online channels.
Why is it important: The launch coincides with drastic shifts in consumer behaviour toward digital and omnichannel experiences where all businesses need to invest to meet consumers where they are.
With PayPal Zettle, small businesses will gain an integrated solution that allows it to accept a range of payments in-person with the Zettle card reader, will help them start selling online and also help manage sales, inventory, reporting and payments across channels. The new solution will also enable small businesses to utilize PayPal’s suite of payment and commerce solutions including its Business Debit Mastercard and invoicing.
By partnering with PayPal, small businesses’ in-person and online sales can be managed through a PayPal Business account where the business will have access to their funds within one day. Additionally, small businesses will be able to offer consumers more payment options including credit and debit cards, PayPal and Venmo QR Codes, digital wallets and access to PayPal Working Capital.
PayPal Introduces PayPal Zettle in the U.S.
Bloomingdale’s launches new concept
Bloomingdale’s launches new concept
What: Bloomie’s will be a convenient, elevated and slimmed-down version of the department store.
Why is it important: Following the flexible format units trend initiated by Nordstrom Local stores, Bloomingdale’s is also thinking small with its first Bloomie’s store, a 22,000-square-foot unit opening on 26 August in the Mosaic District shopping centre in Fairfax, Virginia.
Bloomie’s emphasises luxury, advanced and contemporary labels, and services such as personalisation, customisation, and alterations. The selection is rounded out by beauty, fine jewellery, eyewear and men’s wear. Bloomie’s will also offer services, including easy returns from any channel at the Returns Dropbox, and buy online for in-store or curbside pickup, all accessible through the centralised Front Desk at Bloomie’s.
Every associate on the sales floor will be a stylist, expert in all categories, to provide a level of service enabled by technology. Each stylist will be equipped with digital selling capabilities, allowing them to access special finds for customers outside of Bloomie’s, from nearby Bloomingdale’s stores to Bloomingdales.com.
Bloomingdale’s Is Downsizing With Bloomie’s, A Convenient, Elevated New Concept
Nordstrom gauges Americans’ wardrobe needs
Nordstrom gauges Americans’ wardrobe needs
What: From 9 to 12 June, the retailer surveyed 2,000 Americans, exploring how COVID-19 affected their fashion choices and their perceptions of what they need to return to the office and start socialising again.
Why is it important: The future of fashion feels “uncertain” as 41% of responders said they would dress comfortably for the rest of their life while nordstrom.com has seen a 165% increase in searches for work clothes.
Thirty-two percent of those surveyed said they want help finding looks for dining out; 34% want help finding outfits for events; 21% want help selecting travel clothes, and 20% want help selecting clothes for work. Also, 36% haven’t bought new work clothes since before the pandemic.
Those planning to return to an office this fall said they are looking forward to getting out of their “comfort” zone and are keen on dress pants, 28%; dress shirts, 28%; dresses, 26%; handbags, 22%; skirts, 22%; statement boots, 18%; heeled shoes, 17%.
Nordstrom Gauges Americans’ Wardrobe Needs, Post-Pandemic
John Lewis plans to cut 1,000 jobs
John Lewis plans to cut 1,000 jobs
What: John Lewis Partnership intends to cut another 1,000 roles as part of a wide-ranging restructuring.
Why is it important: The latest job cuts come only a few months after announcing eight John Lewis stores closing and a first-ever annual loss.
The employee-owned retailer said jobs at risk will be a variety of management roles in both John Lewis department stores and Waitrose grocery outlets. The retailer said its proposals would reduce the number of layers between workers in stores and senior leaders and “allow us to reinvest in what matters most to our customers.”
The partnership has 331 Waitrose supermarkets and 34 John Lewis stores. There will be an average reduction of 2.7 roles per shop if the proposals are confirmed.
John Lewis Plans to Cut 1,000 Jobs as UK Retail Woes Worsen
Apple to test hybrid work for retail staff
Apple to test hybrid work for retail staff
What: Called “Retail Flex”, Apple plans to test a hybrid in-store and work-from-home arrangement during 6 months for a small number of retail employees.
Why is it important: From home, workers will handle online sales, customer service and technical support, moving between their store and remote roles depending on demand in stores versus online shopping during a particular period. In the wake of labour shortage, could the initiative also represent a way to attract and retain retail staff?
Creating such a program is an acknowledgment that the trend of greater online shopping accelerated by Covid-19 may continue despite economic re-openings and vaccine availability. This comes after Apple announced return-to-office plans for corporate employees. Apple has asked all non-retail staff beginning in September to work from the office on Mondays, Tuesdays and Thursdays, while office attendance is optional on Wednesdays and Fridays.
Apple will reimburse for some internet expenses and USD 100 toward office equipment. They will also retain the same salary regardless of whether they work at home or at the stores.
Apple to Test Hybrid Work From Store and Home for Retail Staff
Seoul department stores close again
Seoul department stores close again
What: The Seoul metropolitan area will be placed under Level 4 distancing, the highest in the new social distancing system, until July 25.
Why is it important: Shinsegae, Hyundai and Lotte are among the department store operators forced to temporarily close branches after employees tested positive for Covid-19.
Seoul Department Stores Close Temporarily as Covid-19 Cases Surge
Jamie Nordstrom on business, anniversary sale and Asos
Jamie Nordstrom on business, anniversary sale and Asos
What: The president of Nordstrom stores talked with WWD
Why is it important: As it recovers from the pandemic, the retailer sees growth opportunities with Topshop and other Asos-owned brands, and the annual anniversary sale.
Last Sunday, the company disclosed that it took a minority equity position in the Topshop, Topman, Miss Selfridge and HIIT brands owned by Asos, which acquired them from the Arcadia Group that went bankrupt last year. Nordstrom has been selling Topshop and Topman merchandise in the U.S. exclusively since 2012, though that business was impacted by Arcadia’s bankruptcy last year. “The whole supply chain turned upside down. Product delivery was disrupted. But the demand is still there,” said Nordstrom. “The customer doesn’t care about Arcadia’s financial situation or who owns Topshop.”
The executive outlined current selling trends, citing a pickup in wedding-related fashion with weddings resuming. He said casualization and comfort continue strong, abetted by the pandemic; as do flats, and athleisure. Bestselling brands include Alo, Sweaty Betty, and Zella, a Nordstrom-owned brand. Denim is also selling, while men’s suits, historically a big part of Nordstrom’s business, is questionable. He said shopping fashion to wear at charity and industry events seems still on hold, yet should resume this fall. Regarding e-commerce, digital accounted for more than 30% of the company’s volume at the start of 2020. The pandemic pushed digital to 54% of sales by the fourth quarter last year.
The Anniversary Sale is staged across the entire fleet of Nordstrom department stores. It enables the retailer’s highest-spending customers a first crack at shopping designer discounts on new fall styles, at 25 to 40% off. Other loyal but less spending cardholders get access soon after, and on 28 July. “Our two biggest scaled events are the Anniversary Sale and Holiday. A disproportionate amount of our planning and energy are on those two periods,” said Nordstrom. On volume, “They’re pretty darn close, and they are of equal importance to us. But they’re different. This is more of a loyalty event.”
Nordstrom has forecast annual revenue to reach USD 17 billion in the next three to five years, which compares to USD 10.38 billion in sales last year, and USD 15.13 billion in 2019. Last year, Nordstrom had a net loss of USD 690 million, versus reporting a profit of USD 496 million in 2019.
According to the executive, traffic and demand have picked up in the last four months as states lowered COVID-19 restrictions. Still, he acknowledged that Nordstrom’s urban stores more focused on tourism, including those in Chicago, San Francisco, Seattle and New York, haven’t seen the same kind of lift in business as suburban stores.
Jamie Nordstrom on Business, Anniversary Sale and Asos
Nordstrom and ASOS Announce Game-changing Joint Venture
How Ikea and Gucci are using AR to drive sales
How Ikea and Gucci are using AR to drive sales
What: AR is perceived to be a strong selling tool in the near future
Why it is important: It can provide a special, unique and fully branded experience to customers, including for department stores. However, it shall not be perceived as a gadget or an entertaining feature, but on the contrary with the customer’s interest and experience in mind.
Augmented Reality techniques are reported to impact customers purchases and decisions, according to researchers, which explains the renewed interest for it, especially from Snapchat. Even though AR has been used for recreational motives so far, retail brands are increasingly using it to sell products.
Gucci for instance made a special operation with Snapchat to propose a virtual sneakers try-on session, directly leading customers to the product page with an option to buy them. Ikea has developed a dedicated app, Places, which allows users to visualize their desired pieces of furniture in their interior. A recent update is even analysing customers’ interiors to make customized recommendations and proposals, combining AR with AI.
It is believed that such approaches could generalize, as shown in the cosmetics area, where brands, and retailers (such as Amazon) are using this technique to allow customers to try before buying their products.
However, the author reminds that AR is not a magical wand, but a tool, which needs to answer a customer need, or provide a new feature. Moreover, for retailers willing to dive into this field, the need of being technically flawless is more important than ever.
The first Ulta shop in shops to open at Target
The first Ulta shop in shops to open at Target
What: The agreement announced last November finally translates in the first store openings
Why it is important: The combination of both Target’s and Ulta’s reward programs provide interesting features for customers, and raise some questions on how the data is processed and by whom.
Following the announcement last November of opening 800 Ulta shop in shops at Target, the first batch of 100 points of sales is about to open. These shop in shops will offer a selection of the Ulta product range, including 50+ top brands, its own private label and collaborative brands.
Ulta shop in shops will make the most of the whole services developed by Target: click & collect, same day delivery, cumulated reward program and presence on Target’s e-commerce website. Customers will also enjoy Ulta’s virtual try-on tool, Glam Lab.
Target is consistently expanding its offer via partnerships to be a full one-stop shop. Besides Ulta, it has made deals with Apple and Disney in a similar manner.
Ulta Beauty at Target Launches in August — Get All the Gorgeous Details
Ulta to open first Target shop-in-shop locations in August
