W. Galen Weston, the UK-born member of the Canadian Weston family has died after a long illness. He led George Weston Ltd, now run by his son Galen Weston Jr., which controls the Canadian chain Loblaws, the pharmacy chain Shoppers Drug Mart, as well as the Selfridges group operating Selfridges in the UK, Brown Thomas and Arnotts in Ireland, de Bijenkorf in the Netherlands and Holt Renfrew in Canada. Selfridges is headed by his daughter, Alanah Weston.

The British part of the family operate Associated British Food which also owns Primark. Another part of the family empire, Wittington investments, owns Fortnum & Mason.

Retail Entrepreneur Galen Weston Dies at 80

What: The sustainably-designed Green Pea mall in the Italian city of Turin claims to be the “first green retail park” in the world.

Why is it important: The mall, created by Eataly owners, differs from a traditional retail park in the way it picks its retail partners.

The five-storey mall structure aims to reduce the amount of CO2 and waste produced by a mall. It does this by harnessing solar power, wind power, geothermal wells and kinetic energy, as well as by building more than 2 000 trees.

In order to be considered as a potential retail partner in the development, brands must sign up to the Green Pea manifesto, which is a commitment to respect the planet and build a more eco-friendly future. On the Green Pea website each partner retailer’s sustainability credentials are spelled out in the “Our Green points” section.

Green Pea is the first green retail park

What: Descriptions of neglected stores reopening across the US

Why it is important: Stores have not been the main focus during the pandemic. But they need to be ready to welcome customers back.

CNBC has reported on neglected and unwelcoming stores reopening across the country. Retailers have been facing many challenges during the pandemic. These include supply chain delays as well as a focus away from stores towards e-commerce. Some Walmart and Macy’s stores have been pictured selling crumpled clothes, from half-empty empty shelves with piles of unopened inventory on the floors. Especially when the stores have been used for kerbside pickup.

The coming months may be very important for retailers as they try to get shoppers back into stores, where sales tend to be more profitable. Some consumers have money they’ve saved on commuting costs, eating out and traveling. Some have stimulus cheques waiting to be spent. These shoppers may start looking for merchandise that has been off their radar for months: dresses, jackets, more formal shoes, swimsuits and cosmetics.

As Americans return to shop in stores, some retailers are still a mess

What: The department store partners with Drinks, the online leader in adult beverage.

Why is it important: This announcement comes as online wine shopping continues to gain widespread adoption.

The new offering marks a significant expansion of the retailer’s existing online wine program and a new model that will allow customers to make friction-free purchases without a subscription.

Alcohol e-commerce has surged over the past year and is expected to increase steadily over the next five years. As wine e-commerce gains popularity among consumers, Drinks is giving retailers an edge by allowing them to seamlessly bring the wine category online alongside their other products, and offer their customers quick home delivery.

Macy’s and Drinks Launch New Online Wine Shop 

What: Premium exercise brand has launched a fully-recyclable zero-waste running shoe.

Why is it important: It is only available to rent via a monthly subscription service.

The Cyclon running shoe is made from castor beans. When the shoes reach the end of their life, which the brand estimates to be after 400km, the user can request a new pair of Cyclons. Once those arrive, they send their old shoes back to On in the same packaging, and the brand takes care of recycling.

Runners pay GBP 25 per month to subscribe to, or rent, the shoe.

On Running releases sustainable running shoe subscription

What: The department Store gears up for reopening with sustainable window displays.

Why is it important: The retailer is also rolling out an outdoor gym with SoulCycle and a new concierge service to lure more customers back to the store.

The Oxford Street windows integrate concepts of horticulture, outdoor activities such as camping, climbing and foraging, and symbolic elements of formal garden traditions, like mazes or topiary with new season products. The retailer said this window design’s sustainable approach is a direct response to the store’s Project Earth initiative launched last August.

In order to lure customers back, Selfridges’ reopening includes a partnership with SoulCycle to open its first outside studio in the U.K., behind the Oxford Street store, and the launch of Experience Concierge, a new gifting service offering curated experience packages ranging from floristry workshops and pampering sessions, to out of hours children’s parties in the toy department and private screenings at The Cinema at Selfridges.

The department Store gears up for reopening with sustainable window displays

Selfridges' press release

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What: The Neiman Marcus Group has established an Environmental Social Governance team for the first time.

Why is it important: Neiman’s said the success of this small team will largely hinge on “a cross-functional governance model to engage leaders and task forces across the company ensuring that ESG is infused into all parts of NMG’s business.”

The ESG team consists of a vice president and two managers who report to NMG’s chief people and belonging officer Eric Severson, with quarterly oversight from NMG’s board.

The team is collaborating with independent, third-party consultants to conduct a survey to highlight ESG issues. Neiman’s will use the findings to identify ESG priorities, set time-bound goals, invest in competitive opportunities, and publish a comprehensive strategy later this year.

In 2019, NMG became the first luxury retailer to make a long-term investment in resale by acquiring a minority stake in Fashionphile, a reseller of preowned luxury handbags and accessories. Customers can bring in used luxury items to Fashionphile, get them authenticated, and receive cash or a 10% increase on a Neiman Marcus gift card for the items. Used luxury items can be purchased on the Fashionphile website.

Neiman Marcus Group Honors Earth Day

Neiman Marcus Group Acts on Sustainability 

What: The retailer will close its fur salons and stop selling products made with animal fur by early 2023.

Why is it important: This is part of a broader trend by US department stores to stop selling such goods.

The move will apply to both stores and e-commerce. The retailer will keep faux-fur on its shelves, along with products that include cattle hide, shearling, down and leather.

The movement against fur clothes has picked up momentum in recent years amid concerns of animal abuse, with department stores including Macy’s, Bloomingdale’s and Nordstrom halting sales. Neiman Marcus continues to sell fur.

Saks Fifth Avenue Moves to Halt Sales of Fur Products

What: With this second-hand footwear programme, the sportswear giant is the latest company to expand into the circular economy with its products.

Why is it important: Nike being strong in resale, the programme will help the company see some of the profits that have gone to marketplaces.

Nike announced it would take back shoes that are “like-new, gently worn and slightly imperfect.” The company will fix them up and then sell them at a discounted rate to new shoppers. The program will be available in 15 stores in the US, with plans for expansion later this year.

The company isn’t offering a reward to shoppers for participating in the program.

Items that can’t be restored to a like-new level can be donated to a community partner or recycled into materials and products through Nike Grind, a programme recycling over 130 million pounds of waste, according to Nike.

Nike Is Launching a Secondhand Footwear Programme

Nike launches refurbishment programme in 15 stores

What: The company is to slash rents for its retail tenants by around 30% as UK stores reopen after third lockdown.

Why is it important: Landlords have been forced to accept commercial reality in the past year as companies have renegotiated rent to more affordable levels.

Hammerson owns a raft of properties, including the Bullring in Birmingham, London’s Brent Cross, Reading’s The Oracle and Victoria Quarter in Leeds. The landlord has been working to collect as many rents as it could but also aimed to “share the pain” with retailers and said it will continue to support retailers post-reopening. That includes rent reductions, although it’s unknown if cuts will turn permanent.

The reset as far as rents are concerned makes sense if landlords want to ensure that they can collect as many of the rents they're owed as possible. The last year has seen multiple property owners admitting that they were unable to collect a large proportion of the rents due.

Hammerson cuts store rents by 30%

What: French luxury brand strikes an innovative deal with JD.com

Why it is important: Louis Vuitton but will not sell its products via JD.com’s platform.

One of the last major luxury brands to have kept out of China’s main platforms, prioritizing direct access through its own e-commerce, Louis Vuitton partners with JD.com in a unique arrangement to expand e-commerce in China.

Chinese customers searching for Louis Vuitton on JD.com’s app will be redirected to a page dedicated to the brand, then on to Louis Vuitton’s official WeChat mini program to purchase products. This allows Louis Vuitton to access JD.com’s 472 million active customers while retaining control of the actual shopping experience.

The flexible model should also allow JD.com to attract other luxury brands in a bid to compete with Alibaba-owned Tmall’s dominant Luxury Pavilion.

Louis Vuitton Partners with JD.com to Expand E-Commerce in China

What: A new state of emergency has been declared for Tokyo, Osaka, Kyoto and Hyogo due to a resurgence of Covid.

Why is it important: Sales areas providing daily necessities can be open for business, but the definition of this term remains very unclear, prompting different responses among companies.

For instance, Tobu’s Ikebukuro flagship in Tokyo will operate only a few sections, such as groceries, beauty salon and sections selling glasses and hearing aid devices. Isetan Mitsukoshi continues to operate some restaurants and cosmetics sections. In addition to cosmetics, Daimaru Matsuzakaya will keep open the women’s handkerchief and sock sections during the state of emergency. Takashimaya is operating only the food floors at its Osaka and Kyoto stores, but its Tokyo outlets are operating cosmetics sections.

In Japan, stores are closing again

What: The waning profitability of John Lewis stores.

Why it is important: John Lewis is taking dramatic measures to deal with post-covid and its huge shift to online retail.

The Financial Times argues that the shift of strategy at John Lewis will have a huge impact on geographical areas where stores are to be closed. It remains a question whether fitting smaller versions of department stores inside Waitrose supermarkets will be sufficiently attractive to customers. John Lewis has based its strategy on customer data which reveals that it is confident in the future of 34 of its department stores out of the 50 operating at the beginning of the covid pandemic.

John Lewis looks to a future away from the shop floor

What: The e-tailer is investing in beauty, one of the most important categories on its marketplace.

Why is it important: Amazon is venturing in physical retail again.

The e-tailer partnered with an independent salon to open a 1 500 square space hair salon in London to demonstrate its hair care products and technologies. The salon will offer services for adults and children, including cut, colour and styling, and guests will be able to try out hair colours virtually through augmented reality or scan and purchase items on the salon’s shelves.

The salon will be open only to Amazon employees at first, and the company said there are no current plans to open additional locations.

Amazon to Open Beauty Salon in London 

What: German retailer’s director Miguel Mulenbach is expecting major discounts in fashion.

Why is it important: German department store may need more government help to survive.

He points out that without the help of Signa, the owner of the group, "there would not be any department stores for a long time — and our 20,000 or so jobs would have disappeared".

Galeria Karstadt Kaufhof received a loan of EUR 460 million from the German government earlier this year.

En Allemagne, le directeur de Galeria Karstadt Kaufhof craint l'impact d'une poursuite du confinement

What: Brian Solis from Salesforce shares his vision

Why is it important: In the future, the most successful retailers will marry technology with the customer experience, using new types of expertise.

Only if retailers stop thinking like retailers will they truly innovate. So says Brian Solis, a self-described “digital anthropologist and futurist” who joined Salesforce.com in March 2020 as its global innovation evangelist. The author of several books including X: The Experience When Business Meets Design (John Wiley & Sons, 2015), Solis recently shared his views on the future of shopping with McKinsey’s Cindy Van Horne. Here’s a summary of the interview.

The wow factor

The problem, when we imagine the future of retail, is that we tend to think about it as retailers. But there are other possibilities. For example, we could look at the most innovative amusement parks and translate that guest experience to the inside of a store or across other channels. Think about all the artistry and science that go into virtual reality, augmented reality, video games, or theme parks like Disney World. There’s a lot of “Imagineering,” as Disney calls it, that has to take place to marry technology with the customer’s experience in special ways that a company can then own and make a part of its brand.

By 2030, we’ll have sensors, computer vision, AI, augmented reality, immersive and spatial computing. How can these worlds play together in a way that is almost fantasy-like? It takes experience architecture—a new type of discipline and expertise. I wouldn’t be shocked if the best retailers in 2030 are employing game designers or spatial-computing designers.

Physical stores

Retailers can no longer just build fixed structures and rely on a business model based on, “How much can we squeeze out of this design before we need a remodel?” The business model should be about being agile, evolving, staying culturally relevant. It’s about reimagining space and flow.

Technology shouldn’t feel intrusive and suffocating. Technically, a retailer could know my name and my past transactions when I walk into a store and offer me new products and services. As technologies exist, the question becomes, “How do we use them?” It’s about creating magic. Great retailers, in the future, will make you feel like you’re in a special place, designed especially for you, so that you take time out of your life to go to that place because it’s aspirational.

Design and tech talents

Solis did some work with Westfield, the shopping-mall developer when it was launching an innovation centre and a lab in San Francisco. The company wanted to not just imagine the future of retail but also set the stage for the type of talent it wanted to attract. So it opened a collaboration hub and invited entrepreneurs to work there, which created energy and a sense of belonging. That’s one way to start thinking about the talent question.

In the 2000s and 2010s, Domino’s Pizza realized that it had to be a technology company first. How does a pizza company attract top software talent? By attaching innovation to the brand.

Retailers as experience designers Brian Solis on shopping in 2030

What: Lunar New Year’s holiday in early February and the opening of Seoul’s biggest department store The Hyundai Seoul triggered pent-up demand.

Why is it important: Sale suggest pent-up spending of the richer in South Korea.

According to the data from Statistics Korea on Monday, department store sales gained 33.5% in Feb against a year-ago period in the biggest year-on-year surge since the data became available in 1995.

The seasonally adjusted retail sales index, which plunged to 105.7 in Feb last year when the first wave of Covid-19 outbreak hit the country, bounced back to pre-pandemic levels at 115.2.

The rise in the retail sales index was driven by increased purchases of cars, home appliances and furniture. The sales index of semi-durable goods like clothes, shoes and bags stood at 98.0 versus 105.0 a year ago. The sales index of nondurables was also lower than pre-pandemic levels partly due to sluggish cosmetics sales at duty-free shops.

Korea’s department store sales jumps 34% in record on-year surge in Feb

What: A new partnership aiming at expanding the presence of Tommy Hilfiger at Kohl’s in the US

Why it is important: This reflects both the necessity for department stores to address (quickly) the topic of their own branding (what is their community and purpose) which implied, in the case of Kohl’s, upgrading from the discounting positioning. At the same time, Kohl’s being usually away from malls, it also reflects the changes in nature of distribution and consumption patterns in the US, given the scale of the partnership with the brand owned by PVH Group.

Tommy Hilfiger has announced a new partnership with Kohl’s in the US, with the objective to make the men’s sportswear line available in more than 600 stores, as well as online. Since Kohl’s is primarily a discount department store, Tommy Hilfiger will be presented in dedicated spaces within Kohl’s, with the ambition to elevate the overall image of the chain. This is the latest brand entry at Kohl’s, after Cole Haan, Eddie Bauer, Land’s end and Sephora.

Kohl’s enjoys a strategic advantage when compared to other department stores, since they are usually located away from malls, and their discount-oriented positioning helped them going through the pandemic with limited damages. The move upwards in terms of positioning is the reflect of both the will to take advantage of their position, as well as the necessity to elevate the brand equity of the retailer, in order to move away from the discounting positioning while keeping its advantages.

This is an echo to both the Merchandising Meeting #2 dedicated to sports & lifestyle (21 April) and Cross Functional #3 on Department stores branding (4 June) that we organise with our members.

Kohl's Tommy Hilfiger partnership is another blow to Macy's, malls 

Coup for Kohl’s, Tommy on His Way 

What: The company will gauge demand through a test period starting 15 April in the U.K. and 13 May in the U.S.

Why is it important: While rental services are a growing business, H&M’s one aims to boost job prospects.

One/Second/Suit is an H&M Man suit rental service offered to customers “so anyone attending a job interview can make a powerful first impression”. The retailer said the suits will be completely free for 24 hours.

H&M Man launches suit rental service

What: Non-essential retailers in England and Wales can reopen their shops on 12 April.

Why is it important: Reopening plans include new brands and areas dedicated to lifestyle.

While Selfridges unveiled its new windows ahead of reopening, Harrods said it would launch new, headlining brand boutiques and pop-ups in addition to exclusive collections and launches. Harrods customers can also expect al-fresco dining experiences, exceptional retail theatre throughout the store and new collections and pop-ups from the world’s most sought-after brands.

Meanwhile, Fenwick will launch new clothing brands as well as a new lifestyle zone. New clothing concessions include Soletrader, menswear brand Boy London, and sustainable brands Ninety Percent and Colorful Standard.

At its Bond Street store in central London, Fenwick is launching The Studio – a wellness and lifestyle area on the lower-ground floor that will include a concession for bicycle and cycling-wear retailer Velorution and running specialist brand On.

Al fresco dining, a new wellness space and a vegan restaurant will also open at Bond Street store. Fenwick is also willing to support local independent businesses showcasing local artisans and producers.

Harrods and Fenwick reopening plans

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What : Walmart is pitching itself as a sustainable investment to Wall Street

Why it is important: Commentators recently noted that investors are not looking anymore at retailers for their stores or their stocks, but just their brand name. Pitching sustainability is a good way to valorise retailers’ operations (and investments in such a strategy) to make sure the company is valued at the right level by investors.

Walmart is emphasizing its sustainability efforts to investors in Wall Street (zero emission pledge, employee protection, racial equity…). It is positioning itself as a long-term investment with sense, because it appeals to both customers’ and investors’ consciousness.

The move is smart, as it is a way to give a value to the way operations are built, including store operations, at a moment when potential investors are more interested by the name of the store and the possibilities to licence it (Barney’s, Topshop…) rather than the stores themselves and the stock. It is also a step towards “branding” the retailer’s name and make it desirable, with the hope that this desire will trickle down in terms of customers loyalty and willingness to join the retailer’s audience, as well as more direct benefits such as the success of private labels. We will organise on the 4th June 2021 a Crossfunctional workshop dedicated to “Making the department store brand desirable”.

Walmart’s Sustainability Pitch to Wall Street

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• Exclusive talk with retail veterans Simon Susman and Erika Vilkaus

What: The retailer has a new plan to hold on to shoppers in the crowded electronics market.

Why is it important: The programme is set to compete with Amazon.

After a strong sales during the pandemic, the retailer is launching a USD 199.99 annual membership program with free device installations, a concierge service for tech support and other perks. The program, Best Buy Beta, will be available at around 60 Best Buy stores in six states by the end of this month. It also includes free shipping without order minimums, extended return windows and exclusive sales.

Best Buy has adapted to competition from online players like Amazon by beefing up customer service and positioning itself as the expert in TVs, computers and other electronics.

Amazon has popularised the membership model in retail with Prime, which currently costs USD 120 a year, and other retailers have followed its example. Walmart last year debuted Walmart+, a USD 98-a-year plan that includes free shipping from USD 35 and over and same-day grocery delivery.

Best Buy launches a new membership programme

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What: The brand was one of the few successes last year.

Why is it important: Selfridges’ choice confirms eco-athleisure surge.

The unisex label, whose name comes from Pan (all inclusive) and Gaia (mother earth), generated USD 75 million in revenue in 2020, and now for the first time since its inception in 2019, is launching pop-up store at Selfridges.

Given that the Pangaia’s luxe loungewear formed the basis of fashion lover’s pandemic uniforms, the pop-up store will stock tracksuits in its seven core colours, as well as introduce some new offerings including note books and a partnership with Ocean Bottle.

The brand has pioneered self-cleaning T-shirts made from seaweed; puffer coats filled with wildflowers; and lab-produced pigments made from a flower’s DNA. The Pangaia pop-up is a continuation of Selfridges’ Project Earth initiative, which it launched last summer.

Pangaia launches first ever pop-up at Selfridges 

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• Selfridges unveils its “Good Nature” campaign

What: An innovative development in Culver City offers pointers as to how retail might evolve post-pandemic.

Why is it important: It’s neither mall nor department store, neither traditional Main Street nor high street plumbed with independent owners. It’s an array of these elements, with unusual merchandise partnerships and online connectivity thrown in.

Several of the two dozen stores at Platform are pop-ups with short-term leases, nestled together and connected with meandering sidewalks lined with trees, bushes and benches. Much of the merchandise — and restaurant fare — can be purchased online and picked up at a drive-through.

Familiar stores such as Monocle, Blue Bottle coffee, Aesop or Reformation are sprinkled among Platform’s own shops, including the Optimist, Teller women’s fashions and a beachwear shop called Optimist Beach. The entire development is targeted to appeal to the trendy upscale local neighbourhood. The mix of shops and great places to eat out is also an essential part of the blend at Platform. While restaurants are shuttered all over Los Angeles, those at Platform were busy.

Platform’s approach to leasing and merchandising is where it breaks away from retail industry traditions. The brand shares the risk with the store, but rather than charge-backs, fees and other contractual clauses, Platform’s approach splits sales 50-50. After 120 days, decisions about what to do with unsold merchandise are left up to the brand, which might send it to another store or set a lower sale price.

Platform supposedly offers fashion labels roughly a 20% higher profit margin and more control over merchandising and fast information on what’s selling. The shared control makes it feel like a partnership. “You get the exposure, you get the placement, you get the sales,” Platform explains. “It’s not traditional wholesale. It’s not traditional consignment.”

Is LA’s Platform the future of retail