What: The French department store will broadcast four 20-minute programmes from its Boulevard Haussmann flagship store via its website and on social media.

Why is it important: While livestream shopping has been slow to catch on in Europe, Galeries Lafayette launched its distant shopping service in November 2020 and Breuninger debuted live shopping sessions in March.

The first show will launch on June 23, followed by shows on July 7, 21 and 28. Each of Printemps’ livestream events will showcase a selection of fashion, beauty and lifestyle pieces. Shoppers will be able to ask questions directly to the hosting personal shopper through a chat function.

Printemps Debuts Livestream Shopping 

What: A joint White Paper from Bain & Co and Alibaba on Chinese customer loyalty

Why it is important: Although China is a specific market, some trends might be reproduced in other ones, such as the group-buying options provided to customers from lower tier cities, leveraging digital capabilities.

Bain & Co and Alibaba released a joint White Paper, “Hyperlocal Retail Brand Growth”, analysing the evolution of the Chinese market, from mom & pop to hypermarket (2000 – 2010), then the massive digitalization (2010 – 2020) and the current competition for customer loyalty. It anticipates a stronger and fiercer competition as the e-commerce market is going more mature, meaning that the focus is not anymore on customer acquisition, but increasing the share of customer spending, thanks to hyperlocal retail, including proximity e-commerce and online to offline sales.

Interestingly, in China, only 15% of customers are loyal category shoppers, dedicated to one specific brand in a given category, and contribute to 20% of the said brand’s sale. 60% are much more spontaneous and tend to increase their options, thus being less loyal to brands and retailers.

There are different preferences according to the regions: in top tier cities, customers favour one-hour delivery, while in lower tier cities, customers prefer to opt for group-buying, in order to lower the prices, instead of paying a premium for speedy deliveries.

In 'new era', hyperlocal retail to be future, finds Bain study

What: Swedish online second-hand shop Sellpy, which is majority-owned by fashion giant H&M is opening in 20 European countries.

Why is it important: The company handles the entire sales process from picking up the goods from sellers’ homes, to photographing, selling and shipping.

The expansion will take its number of markets to 24 after it first launched in 2014 in Sweden. The H&M group, which is on the outlook for additional revenue streams following a few rough years with slowing sales, bought its first stake in Sellpy in 2015.

H&M has invested more than EUR 20 million (USD 24.38 million) in Sellpy and owns around 70% of the company. Sellpy said more than nine million garments had been sold in total on its platform.

H&M Launches Resale Site Sellpy in 20 More Countries 

What: Department store group owned by the Weston family is said to have received an approach from a potential buyer

Why it is important: The non-solicited offer became a circulating rumour very quickly.

Established by Harry Gordon Selfridge in 1908, the retailer was acquired by the Weston family for GBP 598 million in 2003 and now comprises 4 Selfridges stores in the UK, Brown Thomas and Arnotts in Ireland, De Bijenkorf in the Netherlands and Holt Renfrew in Canada.

During the lockdown in July 2020, the store laid off 14% of its employees (450 positions)

Credit Suisse has been reported to be appointed adviser after an unsolicited approach. If confirmed, the approach would come at a time of considerable internal change; the family patriarch, W Galen Weston, died earlier this year while Paul Kelly, who had run the Selfridges group since the Westons acquired it, moved to another role in the holding company in 2019. The chairwoman is Alannah Weston, daughter of Galen Weston, and was appointed 2 years ago.

Selfridges up for sale with £4bn price tag 

What: La Samaritaine is carefully crafting its visibility in press to prepare its opening

Why it is important: The reopening of this iconic location has been waited for long, and expectations are extremely high.

Monocle had the opportunity to visit in avant-premiere La Samaritaine to discover what to expect after 16 years of works. Presented as the revival of a neighbourhood rather than a building renovation, the new project includes the first Cheval Blanc hotel into a main capital city, offices, social housing, a nursery, in addition to the department store itself. LVMH likes to present the project not as a new department store, but as a place of discovery, surprises and experience.

The good place 

What: Saks Fifth Avenue doubles down on the unbundling of its online and offline operations

Why it is important: At a moment when all retailers are racing to achieve efficient and frictionless omnichannel operations, the move is not well understood by analysts. What has Saks figured out that the others did not?

Saks Fifth Avenue’s owner Hudson’s Bay is splitting its off price operations on the same pattern than the full price one, by unbundling the website from store operations. Backed by investor Insight Partners, the goal is to establish the Saks Off 5th e-commerce business as a stand-alone operation, valued at USD 1 billion after the operation.

Saks’ off-price real estate footprint remains wholly owned by HBC and will continue to cooperate with the new off-price e-commerce structure. The move is believed to be a prelude to a public offering according to investors.

Saks Off 5th Splits E-commerce and Retail 

What: Betting on travel rebound, the concept store Gatezero will open in November.

Why is it important: Could pop up stores open in department stores, knowing Highsnobiety is no stranger to retail?

The Berlin-based menswear, luxury and streetwear content-and-commerce company will open “Gatezero” on 15 November and sell products across ready-to-wear and accessories from Acne Studios, Ambush, Comme des Garçons, and more brands, as well as Highsnobiety’s own collaborations in these categories. The Zurich Airport location is due to be open for six months, and additional stores in other airports are planned to open in 2022.

Highsnobiety to Open Concept Store in Zurich Airport 

What: One of the most significant real estate owner in the UK reported its 2020 results

Why it is important:  In spite of having suffered a net profit decrease of -21.9%  in 2020 compared to 2019, recovery is not yet in sight and things might get worse in terms of retail occupancy.

Retail landlords such as The Crown Estate (a significant player  owning top notch properties in the centre of London) are expecting the crisis to get worse, even though the number of empty location has already doubled since the start of the pandemic, and difficulties to retrieve rents (cash collection is at 81%).The Crown Estate saw its net revenue profit decrease by GBP 75.7m in 2020 compared to 2019, to GBP 269.3m (-21.9%).

London has been particularly hit, with Regent Street footfall down -75% compared to the previous year, for instance, leading to a decrease of the London portfolio value from GBP 8.4 bn to 7.7b, with 8.2% unoccupancy rate (from 4.7% pre-pandemic).

The Crown Estate CEO mentioned to Bloomberg that they expected the situation to worsen even further, leading him to start considering sales and conversion projects.

London Retail Situation The Crown Estate announces £269.3 million net revenue profit for 2020-2021

What: A new initiative tested to increase delivery options for customers

Why it is important: Retailers need to be creative to play with the limitations imposed by new technologies. In the case of drones, the limited weight that can be carried was played not as a limitation, but as an opportunity for Kroger to propose themed bundles.

GDR UK, a retail intelligence agency based in London, reported an interesting new initiative in terms of logistics and last mile delivery. US Supermarket Kroger teamed up with Drone Express to test a 15-minutes delivery option via drone.

This option is valid only for a limited number of products in one select location for now, and provides customers with the possibility to order from their smartphone and have the products delivered either at home or in nearby parks and public spaces.

Deliveries are limited to a total weight of 5 pounds, which is the reason why Kroger is proposing bundles of products respecting this maximum limit, with themes: baby care bundle (wipes and formula), “S’mores bundle” with crackers, marshmallows and chocolate.

The 15-minute delivery delay is not a firm promise, however the marketed message heavily insists on it.

This is clearly a test for expansion in case of success and good customers’ response.

Kroger trials curated bundles for 15 minute drone delivery

What:  Westield is divesting in a 4th mall in the US this year, following the plan announced earlier in 2020.

Why it is important:  Large operators are in a situation where rightsizing is not enough anymore. To remain economically viable, they have to divest and focus on profitable part of their assets portfolio.

Unibal-Rodamco-Westfield, owner of the Westfield Broward mall in Florida, is turning over the property to lenders, and operations to a receiver. This move is part of a plan already announced to let go US properties during 2021 and 2022. The group already divested 3 malls, after having suffered a decrease of 44% sales as a whole for its US operations. Unibail seeks to rebalance their real estate portfolio and focus on the most promising ones, instead of reaching a costly critical mass.

Westfield turns over Florida mall to lenders

What: Following Debenhams’ bankruptcy, some of its stores are attributed a new purpose.

Why it is important:  the project is a good example of the new urban deployments, mixing hospitality with entertainment. With the exception of the 20,000 sqm retail space planned in Paris, this project is similar to what La Samaritaine promises to be once it opens.

The Debenhams store, in the Princess building erected in 1869, closed following to the company’s failure, is set to be redeveloped into a hotel and restaurant, expected to open in 2024. The project will cost GBP 50 million and cover all 10,800 sqm of retail space.

It is widely expected to contribute to the local community and city centre life.

Debenhams' Edinburgh store to convert into boutique hotel 

What: John Lewis extends its marketplace operations to fashion brands

Why it is important: The UK department store aims at rejuvenating its brands image through this move.

John Lewis is inviting 40+ brands to “sell their products on John Lewis website”, with a plan to reach 100 brands in the next 12 months. The goal is to increase the number of options for customers to buy branded fashion and the price range. This is the first time that John Lewis does so for fashion, but not as a whole, as the marketplace model was already used for home products in the past.

Pippa Wicks, CEO, mentions that this new step is part of the plans to modernise the brand.

John Lewis to allow fashion brands to sell products directly on its website 

What: The UK retail landscape is hampered by a wave of unpaid rental dues which accrued during the pandemic

Why it is important: Even though negotiations are taking place, 1 out of 7 retailers still have to reach an agreement with their landlords, while the official support ends on June 30.

UK landlords claim that there is approximately GBP 6 billion in unpaid rent to be recovered since the beginning of the pandemic, and that a large majority of tenants have come to an agreement. However, some are resisting talks, including Frasers Group and Boots.

The British government support (bans on eviction and judiciary pursuits for unpaid rent) was enforced in March 20 and is expected to end on June 30. What will replace this set of protection is not clear for tenants yet, at a moment when all retailers are trying to get back to a normal pace of activity, after a 15-month period of difficulties.

Last May, the British Retail Consortium claimed that 2/3 of UK retailers were at risk of legal actions. Following discussions, 1 out of 7 tenants still have to come to an agreement, for a total GBP of 1,84 billion in rental value. Boots argues that retail footfall across retail locations have significantly lowered, impacting trade, while they stayed open during the pandemic. Frasers did not comment.

Frasers and Boots frustrate landlords with hardball rent talks

What: The retailer is investing in DroneUp, a drone services company that it has previously worked with on delivery trials.

Why is it important: In e-commerce quest, last-mile delivery is key and requires new solutions to reduce costs and lead time.

The retailer, whose executives have spent the past year emphasizing its e-commerce ambitions and strategies to shorten delivery times, said it is investing in DroneUp, which offers data collection services using drones.

The company said it would be unrolling its first operations with the company in Arkansas, and indicated plans to scale the operations over time. Drone deliveries, still a while from being scaled to mass use, are being viewed as a way to circumvent traffic, and as part of a shifting retail model.

Walmart Invests in Drone Deliveries in E-commerce Quest 

What: The retailer has broadened the responsibilities of Denise Magid and Dan Leppo, both executive vice presidents and general merchandise managers, in the wake of the departure of Stacie Borteck, senior vice president and general merchandise manager.

Why is it important:  Rather than replacing Stacie Borteck, the department store is reorganising its merchandising structure.

Additionally, Jennifer Jones, vice president and divisional merchandise manager of women’s shoes, has been promoted to senior vice president of centre core, a cluster of categories encompassing fashion accessories, shoes and fine jewellery. Jones will report directly to Magid, who adds centre core to her responsibilities while continuing to head up women’s ready-to-wear, concessions and outlets.

Leppo will add the cosmetics division to his responsibilities while continuing to head up the men’s, home and young world (kids) divisions.

Bloomingdale’s Resets Responsibilities of Top Merchant 

What: The interview of Pavilion Malaysia’s CEO, Joyce Yap.

Why it is important: Experience is now a must-have on all markets across the globe, and no retailer is spared with the necessity to address the omnichannel topic, wherever and whatever the culture.

Even though 2020 has been a challenging year, Pavilion is expecting a rebound in terms of traffic and turnover, based on previous experiences (1997, 2007), the short-lived reopening period in June 2020 (traffic went back to 75-890% of 2019 levels and turnover to 50-60%) and what is happening in China with revenge shopping.

The challenges were not on the tenancy rate (which remained stable thanks to newcomers) but internal negotiations with brands led to putting Pavilion’s cash management on a tight rope.

Malaysian customers are now asking for personalisation and experience, like in the rest of the world. For that reason, Pavilion is planning to use technology to leverage that aspect of the business and know better their customer. This also translates into making e-commerce a complement to brick & mortar which, in Yap’s view, is here to stay due to the customers’ hunger for experience. However, omnichannel, like in the rest of the world, is not anymore a question nor a luxury, but a bare necessity.

In terms of projects, Yap described the new Pavilion Bukit Jalil mall set to open in the southern corridor of Kuala Lumpur. Mixing retail, residential and office space on a gross area of 3,48 million square feet, including a bit less of half dedicated to retail, it aims to provide local community with direct access to immersive experiences and leisure.

It will include the newest Parkson department store in Malaysia, a Dadi Cinema, a new concept supermarket and a series of experiences revolving around the South-East Asian cultures.

How pavilion is connecting with its customers

What: The retailer’s ad business rebranded as ‘Walmart Connect’, saw a triple-digit growth last quarter, a high-margin endeavour capitalizing on mountains of shopping data.

Why is it important: Walmart is leveraging its capabilities by using its data asset.

During the ongoing COVID-19 pandemic, Walmart has continued to expand its access to consumers by ramping up kerbside pickup and delivery services, and unrolling its Walmart+ subscription delivery program. The retailer estimates that each week, roughly 265 million customers visit its stores and online all over the world. The company has increasingly sought to leverage this base by rolling out and expanding offerings beyond retail, including in advertising, financial services and health care.

Walmart has been in the advertising business in some form for decades, where its thousands of stores in the U.S. facilitated various exercises in brand advertising. Having a specific new branded platform around those advertising efforts makes it easier to promote that advertising business in a more focused way.

What Walmart has sought to highlight to brands is not just its access to consumer data based on shopping transactions, but also the technology to process that data. Such technology can help to draw connections between the on- and offline behaviours of consumers, and to analyse the purchase journeys of millions of consumers to identify patterns and anticipate needs. The appeal of such a service is especially strong for small businesses whose marketing resources are limited.

This kind of ability to synthesize a large volume of consumer information also introduces some privacy and security concerns for consumers. Walmart said in a statement that the retailer neither provides data about individual customers, nor sells that information.

Walmart Leverages Tech, Proximity to Shoppers to Boost Ad Business 

What: The city’s landlords have begun discussing rent increases with tenants in advance of upcoming lease renewals as its retail sector emerge from two years of social unrest and the pandemic.

Why is it important: New or renewed agreements could be frozen for a year before increasing 5 to 10% in second and third years as the economy is further boosted by the return of tourists.

Hong Kong’s economy grew by 7.9% in the first quarter of 2021 — the biggest quarterly growth in 11 years and the end of six quarters of recession. Retail sales are also gaining pace; sales in the first four months of 2021 have grown an estimated 8.5% year-on-year.

Earlier this year, rents in Hong Kong fell to their lowest levels since 2003 and brands from Prada to Rolex shuttered key boutiques over the pandemic. Major retail streets including Causeway Bay’s Russell Street faced an all-time high vacancy rate as a result of the exodus.

Hong Kong Retail Landlords Mull Rent Increases 

What: eBay Korea has finally been bought by Shinsegae for a USD 3.9 billion price, with financial backing from Naver.

Why is it important: The sale will imply major changes in Korean e-commerce industry, transforming one of the top bricks-and-mortar retailers to a leading online player.

Shinsegae apparently offered a price below eBay's expectations, set to USD 4.4 billion.

Lotte Shopping and E-Mart submitted separate letters of intent to acquire eBay Korea earlier. The country's top telecom company, SK Telecom, and private equity firm (PEF) MBK Partners dropped out of the race.

Shinsegae to acquire eBay Korea for $3.9 bil. 

What:  Marks & Spencer proposes more products to be bought in bulk, in more stores

Why it is important:  By proposing products more complex than “staples” (rice, pasta…) such as croissants and pains au chocolat, Marks & Spencer makes the offer more exciting and sexy, while also surfing on the sustainability stance.

Marks & Spencer extends its “Fill your own” packaging-free refillable grocery concept to 8 stores, for a total of 11 stores with this option now.

With this proposal, customers have the possibility to chose between 60 lines of refillable groceries (including rice, cereal, pasta, but also bake-at-home products such as croissants). It expects to complete the proposal with new products this autumn.

Marks & Spencer extends refillables concept to more stores 

What: Marks & Spencer unveils its new Café concept in Birmingham

Why it is important: This is part of a bigger ambition to make Marks & Spencer seen as a destination for families again.

Marks & Spencer has launched a “test and learn renewal concept” in its new store near Birmingham, in Solihull Sears retail park. The atmosphere has been redesigned to create a warm and inviting space for shoppers, with a seamless ordering process.

The new café concept, the first of its kind, is implemented in the 16th iteration of the new  Marks & Spencer store concept. It aims at making Marks & Spencer a destination for families again.

Marks & Spencer unveils new look M&S Café Retail Bulletin

What:  China is increasing retail space fast in Hainan.

Why it is important: Given that borders are still closed due to Covid-19, it is all about getting a critical mass as fast as possible and create new patterns for Chinese tourists, in order to retain a significant portion of their purchases including when international travels will be authorised again.

Tax-free consumption in Hainan is bolstered by the opening of 3 new stores on the island, one at the international airport and the two other ones in the city of Sanya (where the larger measures 95,000 square meters where 350 brands are present). This leads the province to have a total of 7 duty-free malls, with 4 of them operated by China Duty Free Group. The reason why two new companies are joining the market is reportedly to increase competition and differentiation in the offer.

3 more stores are planned in the coming years, with a total surface combined between the 3 stores just opened and the 3 ones planned of 220,000 square meters.

China's Hainan opens 3 offshore duty free shops 

What:  A mall launches a marketplace designed for its tenants, as a way to provide support and develop hyperlocal retail.

Why it is important:  IADS members are looking for solutions to prevent their concessions tenants to use click & collect as a way to reduce the variable rent to be paid. Bal Harbour does the contrary and provides the infrastructure to increase overall sales, online and offline, while making sure it controls, or has an eye on, e-commerce operations from brands.

Bal Harbour, the high end mall in Miami, Florida, is launching its own marketplace, Bal Harbour Shops Marketplace, designed to be a store-level solution and not an e-commerce platform. The marketplace will be fully integrated into the mall’s website and newsletter (shoppable) and will be providing solutions to brands with a store in Bal Harbour.

Since the launch, 6 brands joined the initiative, including Ferragamo. Interestingly, in terms of operations, most of the brands fulfil sales on this marketplace (which is very much Bal Harbour-centric, thus hyper local, and not competing with e-commerce giants), with products from their stores, and not their warehouse.

In parallel, Bal Harbour is conducting a renovation project, including a new extension (where it proposed brands to relocate in exchange for continuous rent support during the pandemic) and new services area, such as a relocated car park. The new extension, expected to open by 2024 and currently leased at 65%, will increase the mall total surface, from 45,000 sqm today to 70,000.

Bal Harbour Shops Launches a Marketplace 

What: The department store appoints Lisa Aiken, as part of its organizational transformation.

Why is it important: As a digital native, she will act as a fashion-forward expert to identify emerging brands, discover new trends and services across the fashion and lifestyle space.

This role is part of the merchandising and planning team transformation, reporting to Lana Todorovich, President and Chief Merchandising Officer of Neiman Marcus Group.

Aiken was recently Fashion and Buying Director at Moda Operandi. Earlier in her career at Net-a-Porter and MyTheresa, she built a reputation for bringing a modernized approach for luxury brands and fashion e-tailers.

Neiman Marcus Appoints Lisa Aiken in Newly Created Role as Fashion and Lifestyle Director