What: After Sheffield, the British high-end fashion and beauty retailer owned by Frasers Group, opened a second regional flagship.

Why it is important: The opening is another sign of the belief that Frasers has in physical retail and this has made it one of the most active groups as far as store openings are concerned in recent periods.

The claim of the three-storey, 35,000 sq ft (3,250 sqm) store is to offer “world-class brand edits rarely available outside of London, across women’s and men’s ready-to-wear and accessories and beauty”.

The opening is part of a programme that will see the company adding a further 10 flagships in the next five years.

Frasers has been on a general elevation drive in recent years, upgrading its Sports Direct chain, adding more upscale Frasers department stores and expanding the Flannels concept to be a major player in British luxury fashion retail (and more recently, in premium beauty retail as well).

The next flagship to open will be in Liverpool.

Flannels opens Leicester regional flagship

What: Affirm, the growing payment system with accommodating conditions for consumers, will soon be widely available to consumers shopping on Amazon.com.

Why it is important: Thousands of retailers, including Walmart, Adidas, Peloton, Audi, Expedia and Neiman Marcus have partnered with Affirm. The partnership with Amazon reflects the growing popularity of buy now, pay later solutions for consumers.

After shoppers fill their online carts, they select Affirm at checkout and can split the total cost of any purchase over USD 50 into separate payments, with terms up to 48 months depending on the cart size. Approved customers are shown the total cost of their purchase up front and will never pay more than what they agree to at checkout.

Last June, Affirm disclosed that is it powering Shop Pay Installments, a buy now, pay later solution designed for Shopify merchants. In April, Affirm entered into a definitive agreement to acquire Returnly, which provides online return experiences and post-purchase payments.

Amazon.com Partners With Affirm 

What: The e-commerce giant has teamed up with a group of brands to offer shoppers a chance to secure in-demand items before they hit the market.

Why it is important: The move is a new step to further differentiate Farfetch’s platform from competitors.

Ten brands have signed on for the launch, including Balenciaga, Khaite, Nanushka, Palm Angels, Oscar de la Renta and Farfetch-owned Off-White. Customers can preview and order looks four weeks before they hit the broader market. New previews of upcoming seasons will launch monthly.

The idea is to develop a “true pre-production proposition,” providing brands with a way to help manage inventory and minimize waste within the industry, said Jamie Freed, global vice president of Farfetch’s private client division.

In the meantime, the service gives customers access to the new season products before they appear anywhere else — something Farfetch’s private clientele had already been asking for. Brands also benefit from access to pre-order data, which can help identify potential bestsellers and inform re-orders earlier than usual.

Farfetch Teams with Brands For Launch of Pre-Order Service 

What: Iconic green plastic shopping bag will be replaced by paper bags.

Why it is important: The department store is making a drastic reduction in waste, particularly for a business with over 4 million bags leaving the shop floor every year.

After remaining unchanged for almost 40 years, the iconic green shopping bag is being overhauled. From September 2021, all plastic bags will be removed from stores and replaced by 100% recyclable, and sustainably sourced paper bags, made from 40% recycled materials.

The FSC® label on paper bags means that the paper is responsibly sourced. To reduce the number of bags given to customers, Harrods is also aiming to cut consumption of shopping bags by 50%.

The decision will include the complete removal of all carrier bags from the Food Hall and Signature departments later this year when customers will be asked to bring their own bags or purchase a new bag for life.

Harrods removes plastic bags

What: The contemporary art gallery is located on the third floor and is also offering experiences such as visits to artists’ studios.

Why it is important: Cultural products are making a comeback in department stores. Newly reopened La Samaritaine also partners with a gallery – Galerie Perrotin.

With a strong emphasis on the process of art acquisition, Halcyon Gallery offers close guidance in building collections for both residential and commercial properties. And it doesn’t stop with a sale; working with the utmost discretion, their expert team will be on-hand to advise on technical aspects such as hanging artwork, lighting and sculpture placement.

It’s not just about what’s on the walls. From visits to artists’ studios and exclusive exhibition previews, to the incredible experience of commissioning bespoke pieces, Halcyon Gallery believes in the life-enhancing power of art.

Halcyon Gallery at Harrods

What: Retailers and brands are struggling to manage surging customer demand as the supply chain has yet to fully recover from COVID disruptions.

Why it is important: The demand for goods has come before shippers and carriers were ready, causing bottlenecks in the supply chain. This can cause major issues as brands and retailers prepare for the holiday season.

Although retailers believed they were making a comeback as the vaccine was rolled out and consumers were spending their stimulus checks, but there lie major problems in the supply chain that directly hit their bottom line. The economy is booming, but there are lots of factors causing roadblocks in the supply of goods. There have been raw material shortages, labor shortages, shipping container shortages, freight space shortages and facility closures.

Retailers will either have to pay more to get shipments in sooner, not necessarily on time, or they will have to simply wait and expect delays. Freights are estimated to cost 50% to 100% more compared to the year before. The shipping crisis is forcing retailers to pay steep prices as well as make supply chain decisions to ensure that they can stock their shelves with products.

Large players like Walmart have the leverage to buy up space on container ships, which leaves little to no room for smaller players that can’t afford it. Some retailers have even turned to air freight to avoid ports altogether.

'You can pay or you can wait': How retailers are navigating a shipping crisis

What: Department stores and big supermarkets start requiring customers to scan QR codes to shop in an effort to stop the spread of COVID-19.

Why is it important: Stores that are bigger than 3,000 square meters are required to adopt a QR entry log system.

The move takes effect in areas across the country where the current social distancing is Level 3 or above. Level 4 social distancing rules are in place in Seoul and the surrounding areas while the rest of the country excluding 36 cities and counties are under Level 3.

Business including restaurants and clubs were already required to scan QR codes or keep handwritten logs to help authorities track down clusters from the early stages of the pandemic last year.

Korean department stores start QR code scans

What: While the assortment is available online, customers will be able to shop Toys"R"Us in more than 400 Macy’s stores next year.

Why it is important: The toy business grew exponentially in the past year, with many families looking to inspire their children’s imagination.

For more than 70 years it has been the most trusted destination for children and parents seeking great toys. Founded by Charles Lazarus, Toys"R"Us became the world's most beloved toy store and a globally recognized household name in the toy category. Today, Toys"R"Us has a business that generates more than USD 2 billion in global retail sales annually through nearly 900 branded global stores outside the U.S. and e-commerce businesses in more than 25 countries.

Macy's partners with Toys"R"Us

What: Soho Home Studio will stock the private club's homeware collection and offer a series of workshops and interior design services.

Why it is important: While the home goods business has grown due to Covid, Soho House ventures into physical retail for the first time.

Post-IPO Soho House is in expansion mode, with members’ clubs opening soon in Rome, Tel Aviv and Paris, new co-working spaces across London.

The private members’ club will open its first flagship store on King’s Road, in London’s Chelsea area in September. Soho Home Studio will stock the label’s full homeware collection and also offer interior design services, a program of workshops and events, and a rotating gallery of member collaborations.

Soho Home Opens First Flagship Store in London’s Chelsea

What: As competition rises, South Korea’s three biggest department store operators have recently opened massive new shopping complexes.

Why it is important: More mega malls than department stores, they are completed with experiences such as indoor parks and lots of restaurants, sometimes accounting for half of the area.

Shinsegae opened its newest location, Shinsegae Art & Science, in the city of Daejeon. At the cost of KRW 650 billion (USD 555 million), it is the first new mega development for the company in five years. Services and restaurants occupy nearly half the area.

Lotte department store opened its new Dongtan branch on 20 August. Food is the location’s biggest theme, with more than 100 restaurants on site. Many of them are popular eateries that have set up shop in a department store for the first time.

Dongtan, a suburb of Seoul, is close to an area known as South Korea’s Silicon Valley where Samsung Electronics, Naver and other tech companies have sites. High-rise condominiums being built in Dongtan are bringing high-income earners in their 30s and 40s to the area.

But controversies rose regarding this new branch as it has so far failed to attract Louis Vuitton, Chanel or Hermes (only 7 department stores in Korea have all three brands), but also Dior, Bottega Veneta and Gucci. It has also been criticized for its similar interior design to Hyundai Hyundai’s department store The Yeouido opened in February.

Hyundai department store opened the largest facility in Seoul in February. Central to the project is an indoor park covering more than 3,000-square-metres. Operating results have been strong during the first six months. Hyundai Department Store says its new location will “easily” surpass an annual sales target of KRW 630 billion won (USD 541 million) in its first full year of operation.

Korean Retailers Open Spate of Mega Malls as Competition Rises 

Controversies rise regarding Lotte's new branch

What: The new strategy involves offering travelers an assortment of brands and checkout options.

Why it is important: As airport-based retailers were hit hard by Covid, Hudson's strategy aims to ramp up average purchases.

Hudson, a Dufry company, is introducing Evolve by Hudson, a concept shop format geared for its stores in airports. The retailer has more than 1,000 stores in airports, commuter hubs, tourist locations and other points of interest.

The Evolve by Hudson debut is a shift by the company to larger, more integrated store concepts. Shoppers will find different brands in sunglasses, electronics and entertainment, personal care and wellness, luggage and writing instruments, accessories and apparel, local goods and souvenirs, and travel essentials and snacks.

A variety of national and global brands will be offered in the new concept such as Sunglass Hut sunglasses, Apple products, Burt’s Bees personal care products, Tumi luggage, Happy Socks and different travel essentials.

Each store will have at least 2,000 square feet and will be designed with an open format to simplify shopping. Consumers will be able to choose from different checkout options like a traditional one, as well as self-checkout kiosks and Hudson’s newly developed mobile point of sale capabilities. The latter will enable Hudson employees to complete transactions for shoppers from anywhere on the sales floor in the brand shops-in-shop.

Hudson to Launch New Retail Concept in Select Airports 

What: John Lewis was named by the government as an employer that pays staff below the legal minimum wage.

Why it is important: John Lewis claims that they disagree with the allegations as they just tried to help employees budget so they offered hourly workers a monthly rate, which would sometimes result in more or less pay per hour depending on the month. They claim that the average minimum hourly pay has never fallen below the minimum wage.

The list of offenders and their infractions are either larger organizations, like John Lewis, where a large amount of staff were impacted involving relatively small sums of money, or smaller organizations with few staff members involving much bigger losses.

John Lewis on ‘named and shamed’ list for breaching minimum wage 

What: From 2 September until the end of October, the motto "Unis vers le beau responsable" (translating to "United towards beautiful and responsible") will be displayed in all windows throughout France. The department store will highlight a series of products and brands bearing ethical approaches to social and environmental questions.

Why it is important: Printemps will compete with Galeries Lafayette’s “Go For Good” programme.

All stores will organize conferences dedicated to responsibility or circularity but also thematic workshops, such as product repair. Printemps will also organise collection of pre-loved clothes and accessories with Emmaus association and set up micro-donations at the cash register to the benefit of Yann Arthus Bertrand's The GoodPlanet foundation.

"United towards the beautiful responsible" is more than a promotional phase as it is also a new label that will be developed in all product categories To identify these products, Printemps's teams have set up, with the agency Imagin/able, a system evaluating the social and environmental impact of fashion, interior, beauty or food companies.

Evaluated on 22 points in 9 key themes (ethics and solidarity in trade, social commitment, local commitment and promotion of know-how and innovation, organic and natural products, health and environment, biodiversity and animal welfare, circular economy, inclusive economy and finally responsible production and logistics), brands must reach 30 points out of 100 to obtain the label which is designed to be long-term. For the time being, nearly 400 brands will benefit from this label.

On 22 September, Printemps will unveil its new floor entirely dedicated to the circular offer and located at the top of its Haussmann store dedicated to women.

In Paris, the Atrium space of the Haussmann store will be dedicated to Chloé, the brand being highly committed to circularity.

Printemps launches its new responsible strategy

Printemps to Launch Sustainability Label and Circular Fashion Floor

What: Chile’s economy beat expectations in the second quarter as billions of dollars in fiscal stimulus triggered a retail sales frenzy during the pandemic.

Why it is important: Chile has spent more to offset the economic impact of the pandemic than any other key emerging-market country, while a series of early pension withdrawals has put almost USD 50 billion in people’s pockets.

That cash has fueled a consumption boom, with retail sales posting eye-popping year-on-year gains of 66% in June and 72% in May. The economy expanded 18.1% from a year prior, the central bank reported.

The stimulus also helped to offset the economic blow of strict lockdowns and longer nightly curfews implemented by the government to battle a record surge in virus cases during the second quarter. Going forward, growth is expected to speed up as the vaccination campaign drives down infections while the economy slowly reopens.

The South American country will see GDP expand by as much as 9.5% this year, according to the central bank. On top of that, lawmakers are debating new pension drawdowns which may add even more impetus to economic growth.

Chile Growth Outpaces Forecasts, Buoyed by Stimulus Spending 

What:  Central Group gets control over a network of 19 malls in Thailand.

Why it is important:  Central is significantly increasing its reach and retail footprint in the country by consolidating activities and stores since the beginning of the pandemic.

Central Group has taken a 52,15% controlling stake in Siam Future Development, a real estate company operating 19 malls in Thailand including the Mega Bangna flagship and smaller units mixing entertainment, dining and convenience stores.

Central Group takes control of Bangkok's Mega Bangna parent 

What it is: SSG.com, the online marketplace operated by Shinsegae is planning to list on the local stock market.

Why it is important: The IPO could be a response to rival firms like Coupang listing or as a way to raise funds after a year of M&A spending.

SSG.com has started the process by asking local businesses to make proposals to act as the IPO's lead manager. The business didn't say when it will go public, but if everything goes well, it may do so in 2022, with the proceeds going toward logistics and technology infrastructure.

Shinsegae’s E-Commerce Arm SSG.com Plots IPO 

What: Frasers Group’s premium-to-luxury Frasers department store concept is to open in two former Debenhams units in the Republic of Ireland with a debut in Cork and Kildare in 2022.

Why it is important: With negotiated rent deals, vacant prime locations are a golden opportunity for a business like Frasers that’s in expansion mode.

The higher-end Frasers concept grew out of the firm’s House of Fraser chain that the then-Sports Direct acquired out of administration in 2018.

The move upmarket came as the firm also worked to give its Sports Direct chain a more premium image and added new locations for its high-end Flannels chain.

The company clearly sees potential for it, with the reduction in size of the John Lewis chain and the Debenhams demise adding to that potential in what’s clearly no longer an overcrowded department store market.

Upscale Frasers department stores to open in Ireland

What: Nordstrom said it expects revenue to rise over 35% in fiscal 2021, compared with more than 25% forecast previously.

Why it is important: Net sales increased 101% from the same period in fiscal 2020 and decreased 6% from the same period in fiscal 2019. Revenue rose to USD 3.66 billion in the second quarter, from USD 1.86 billion a year earlier.

For the Nordstrom brand, net sales increased 127% compared with the same period in fiscal 2020, and decreased 5% compared with the same period in fiscal 2019. Digital sales increased 30% compared with the same period in fiscal 2020 and increased 24% compared with the same period in fiscal 2019.

Gross profit, as a percentage of net sales, was flat compared with the same period in fiscal 2019, as lower markdowns resulting from healthy inventory sell-through offset deleverage on lower net sales. Ending inventory increased 13% compared with the same period in fiscal 2019, versus a 6% decrease in sales.

Second quarter net income of USD 80 million increased from net loss of USD 255 million during the same period in fiscal 2020, which included after-tax COVID-19 related charges of USD 14 million.

The Company reported net earnings of USD 80 million, with earnings before interest and taxes (“EBIT”) of USD 151 million. EBIT was USD 65 million lower than the second quarter of fiscal 2019 due to freight and labor cost pressures and lower sales volume, partially offset by continued benefits from resetting the cost structure in 2020.

Nordstrom second quarter 2021 earnings

Nordstrom to Report Second Quarter 2021 Financial Results on August 24 

What: Shopping malls from France to Indonesia asked customers to show digital vaccination records in order to enter as governments imposed new rules designed to slow the spread of the Delta variant.

Why is it important: Are vaccine mandates good for retailers? Vaccine mandates come with pros and cons.

Retailers are eager to get shoppers back to physical stores where consumers typically spend more per visit than online, often at better margins. And anything that makes shoppers feel safer is likely to help. But despite the benefits, vaccine mandates come with plenty of complications.

For a start, there’s the logistical challenge: many major markets still lack the technology infrastructure for retailers to efficiently check vaccination status.

Vaccines are also highly polarizing, like in the United States (or in France), where the population is deeply divided. The country’s federal and state governments have yet to impose mandates, leaving retailers to contend with the issue alone. This presents a thorny problem for large retail chains with customers on both sides of the political line.

What if consumers resist? With contentious mask mandates, enforcement typically falls to sales associates who lack sufficient training and suffer abuse when asking customers to comply, driving them to quit at a time when retail workers are already in short supply. Vaccine mandates come with similar liabilities.

No Vaccine, No Entry The Pros and Cons for Retailers

What:  A new concept launched by a US dollar store chain, aiming at a new, more upscale, customer

Why it is important:  So far, results of such a new venture, outside of Dollar General’s comfort zone, is exceeding expectations.

Dollar General has launched a new store concept in October 2020, Popshelf, to court an entirely new customer, different from the usual customer base of the retailer. The goal is to go slightly upscale in terms of product offer, but remaining at the same time in the dollar store universe.

Since the launch, 8 stores have been opened, each measuring approximately 900 sqm, with full year performances exceeding the ones of traditional Dollar General stores by USD 0.3 to 0.6 million on average, and a margin increased by 8 points.

It is viewed by analysts as a way for Dollar General to compete with other concepts such as Five Below, with prices under USD 5 on average. So far, the concept is resonating with customers, with NPS between 80 and 90%.

Dollar General launches a new store concept, Popshelf

What: The new location, called Shinsegae Art & Science, will consist of a department store and the Shinsegae Expo Tower, coming with an aquarium, science exhibition spaces, a multiplex cinema and an indoor sports theme park.

Why it is important: With a 284,224 sqm surface, it is the brand’s third-largest store in South Korea.

The tower will also feature a five-star hotel called “Onoma.” It is to be the first hotel launched by the department store. Local media outlets expect the complex to create more than 20,000 jobs.

Shinsegae to open new store in Daejeon

What: The department store has appointed Sam Archibald as general business manager of apparel.

Why it is important: The appointment is part of Macy's agenda to focus on elevating its contemporary fashion offerings and to appeal to a younger, stylish crowd.

The retailer indicated that Archibald, a veteran of Macy’s, will oversee all aspects of the brand’s apparel strategy across men’s, women’s and kids. Archibald will report to Nata Dvir, Macy’s chief merchandising officer. He most recently served as president of retail/outlets, North America, for Calvin Klein and began his career as a trainee in Macy’s executive development program.

Macy’s Appoints an Apparel Strategist

What: There is a difference in traffic and turnover whether health pass is mandatory or not for customers to enter.

Why it is important: To date, the stores under such restrictions record a drop in traffic between -15 and -25%, and a drop in turnover of between -15 and -20% compared to other centers not subject to health pass.

Since 16 August, about 150 shopping centers of more than 20,000 sqm in France have gradually introduced the control of visitors’ sanitary pass at the entrance. The measure is enforced where Covid cases exceed 200 out of 100,000 persons.

In the clothing sector (brands and department stores), the Trade Alliance notes an average turnover differential of around 18 points between points of sale subject to the health pass, (during the week of 16 August).

The impact is less negative in very urban centers, targeting high revenue customers, than in more popular areas.

Health pass consequences for French retailers

What: The country has lost 83% of its main department stores since the collapse of the BHS chain in 2016, reflecting how hard the high street has been hit by the online boom and the pandemic.

Why it is important: Just 79 department stores remain open compared to 467 five years ago, data compiled in July from commercial property information firm CoStar Group shows.

Two-thirds of those shuttered buildings remain unoccupied. Some 237 have still to be taken over by a new business while just 52 have plans to transfer to another business or use.

The state of department stores in the UK