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 

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 

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 

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 

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

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.

How Ikea and Gucci use VR

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

What: Iconic department store goes on market for GBP 4 billion.

Why is it important: No formal bid has yet been tabled but a small number of parties have already expressed potential interest with sovereign wealth funds of Abu Dhabi, Saudi Arabia and Qatar all named possible bidders alongside Hong Kong’s Lane Crawford.

The Weston family has launched a formal auction to sell the historic department store business. The process could be completed by the end of the year. It was first reported last month that the retail business could be sold after an unnamed bidder approached the Westons, who own a majority stake in Primark owner Associated British Foods, with a move to buy Selfridges.

Selfridges is for sale

What: Farrell Redwine will join the executive team and report to Nordstrom CEO Erik Nordstrom.

Why is it important: Nordstrom is committed to diverse workforce representation at every level of leadership. Redwine was recognized by Savoy magazine as one of its 2019 "Most Influential Women in Corporate America," a prestigious list of African American business leaders and executives.

Redwine joined Nordstrom in 2016 and has held various leadership roles throughout her tenure, most recently overseeing centres of excellence for the entire employee lifecycle. Prior to Nordstrom, she held global HR leadership roles at several other large corporations, including ExxonMobil and Time Inc.

She will oversee all aspects of human resources including recruitment and succession planning, learning and development, recognition and retention, diversity, and total rewards.

Nordstrom Announces New Chief Human Resources Officer Farrell Redwine

What: Hammerson suspends granting rent concessions to tenants as activity picks up

Why it is important:  Cooperation with tenants has been the norm so far, however now that the economy is getting back to a semi-normal, business is back.

UK-based Hammerson has announced that it would stop granting rent concessions to tenants, now that activity picks up and that the UK government extends a ban on evictions until March 22.

Rent collection has improved, according to Hammerson, to 89% for 2020, and currently at 68% for first half of 2021.

Now that business is picking up, operators do not see the need to extend the support that has been the norm during the pandemic.

Mall Operator Hammerson Plans To Stop Giving Rent Concessions 

What:  Olivier Bron, former Galeries Lafayette’s Director of Strategy, takes on a new challenge.

Why it is important: With an experience both as a consultant at Bain and Strategic Director and COO at Galeries Lafayette, Olivier Bron is bringing in a new set of competences to the Thai competitor of IADS member The Mall Group.

Olivier Bron was appointed Director of Strategy for the Galeries Lafayette Group last year and previously led the Galeries Lafayette-BHV network before becoming Director of Group Operations in 2018.

The executive, who had spent more than twelve years at Bain & Company before joining the group led by the Houzé family, will now lead the activity of Central department stores, which have 23 units in Thailand, but also the Robinson brand, which operates about fifty stores in the country and has begun an expansion outside of its borders.

Galeries Lafayette Olivier Bron, Strategy Director, has left the group

What: A reflection on the potential competitive advantages of the new Bloomie’s format launched by Bloomingdale’s and how it could complete, not compete with, the larger department store format.

Why it is important: The US market is known for having a high department store footprint, which might be disconnected for the actual needs of the market. This is why department stores have searched for a long time a new formula to reinvent themselves. Bloomie’s is the latest venture of one of the major players on the market.

Launching a new, smaller retail concept is not something new for US department stores, which have been searching for a new winning formula for quite some years. However, so far, the initiatives were not that successful: Neiman Marcus launched in 2006 a new model, Cusp (smaller boutiques with a lower price contemporary approach), but, instead of opening 70 stores, Cusp became a shop-in-shop concept within Neiman Marcus stores. Nordstrom launched Nordstrom Local, however, they are more successful for being services super hubs more than points of sales.

Things may change with Bloomie’s, launched by Bloomingdale’s, which are expected to be about one-tenth of the typical Bloomingdale’s size with, according to the article, several interesting competitive advantages:

• The smaller format makes it more scalable, and can integrate smaller neighbourhoods, reinvigorating a certain sense of intimacy with local customers,
• The selection will be tailor-made to the local community, with an adaptable floor plan according to the best categories for local customers,
• Bloomie’s will also make sure that many services are available: stylists, BOPI and an easy returns option, customisation and alteration services, all supported by a tech platform allowing the sales staff and customers to access the whole Bloomingdale’s offer.

Analysts see this new venture as a way to keep alive the multibrand retail, in a market which is considered as overcrowded with department stores.

Bloomingdale’s Finds A Scalable New Model In Bloomie’s

What: Gap Inc. has announced that it will close all stores in the U.K. and Ireland.

Why it is important: The closures come as Gap Inc. undergoes an operational revamp.

Gap Inc plans to close all Gap and Gap Outlet stores in the U.K. and in Ireland, although it plans to continue online sales. The retailer is looking to revamp their European operations by understanding the geographical needs for each country.

Gap continues to expand its footprint in Europe as it is negotiating with French retailer Hemione People and Brands to take over its stores. And Italian fast-fashion retailer OVS announced that it will sell Gap clothing online and in stores.

All Gap company stores in U.K., Ireland to close 

What: The American retailer has taken a minority stake in Topshop and the three other brands Asos acquired out of administration in February.

Why is it important: The deal could signal a new chapter as fashion’s biggest retailers seek out strategic alliances to build an edge in the market.

Asos has performed well during the pandemic, benefitting from the closure of physical stores. But it faces fierce competition from rivals like Boohoo Group and Zalando and has long-standing ambitions to expand in the US. Meanwhile, Nordstrom is regrouping after a challenging year.

A tie up between Asos and Nordstrom could help solve issues for both companies. Asos has strong penetration with a young customer base –— and the powerful Topshop brand. Nordstrom has a ready network of stores in the US. While Asos has said physical retail is not its model, there are definite benefits to gaining access to storefronts.

The partnership will build on existing ties. Nordstrom has been the exclusive retailer of Topshop and Topman in the US since 2012 and will gain exclusive multi-channel retail rights for the two brands for all of North America. It will be the only brick-and-mortar presence for the brands globally.

Nordstrom Buys Stake in Topshop With Asos Joint Venture

What: WS Development’s president Samantha David and Clot’s co-founder and creative director Edison Chen discuss using retail stores as community spaces.

Why is it important: Retailers are encouraging a sense of community, which emerges as an increasingly part of successful physical retail strategies. Whether evidenced through representative store design with visual storytelling that reflects the neighbourhood in which the store sits to encourage local engagement, or events that foster loyalty among consumers for whom social activities are an important differentiating factor.

Prioritise the place over purchase

SD: When we think about building a place, it makes a lot more sense to think about where somebody wants to spend their time and not where they necessarily want to spend their dollars. I think you create much deeper bonds and deeper loyalty. We actually launched in the Seaport in Boston a collection of tiny [stores] called The Current. Some are 200 square feet, and it forces creativity. There is usually one person in there, so it forces a connection.

EC: If someone walks into our store, it’s important for them to feel included in the community that we’re trying to build. [We ask] what do local people want to see. And that leads to a discussion [about] the way that the interior is designed, like in LA, it’s a heavy art gallery vibe, and in Shanghai, it’s like an old traditional Chinese pagoda village. So I definitely think that the curation of each store is heavily reliant on local culture and local needs.

Learn about the local communities and cultures

SD: I certainly know I don’t want to walk into a store or a mall and have them all feel the same. [In] different neighbourhoods, in different communities, each one is completely distinct, and whenever we buy a property, the first thing we do is just listen.

EC: From city to city, the culture is very different, and [it’s about] trying to really accommodate and accentuate what the locals are feeling or what they’re going through or what is trending. Retail nowadays isn’t just about a sale, especially as more people shop online and [a] store is just an area for people to understand what you as a company are representing.

Foster a company culture for employee and consumer loyalty

EC: The type of person that we want to work with is someone that isn’t jaded and someone that is willing to admit that they can still learn every day. Having people who understand the nature and the culture that we represent makes it a lot easier for us to send out the troops and have them navigate and search for these people.

SD: I think that our tribe is what distinguishes our places and similarly, with a great retailer, you walk in and you meet a person who’s passionate about that place. If we can’t find somebody to do a job [...] we just pitch in until we can find that superstar player, instead of settling.

This is a sponsored feature paid for by WS Development as part of a BoF partnership.

Optimising the Store as a Community Hub 

What: The new brand, And Now This, offers men’s and women’s apparel for the “fashion-forward, contemporary shopper.”

Why is it important: Privates labels, now consisting of some 20 brands, are a corner stone of Macy’s turnaround strategy.

Striking a balance between a trend-focused aesthetic and affordable price points, the new label’s selection is built around basics that seek to be both wearable and elevated, with a sophisticated touch.

The retailer said that it was on track for its private brands to collectively make up 25% of its total sales by 2025 and revealed plans to transform its popular International Concepts, Alfani, Style & Co., and Charter Club labels into USD 1 billion businesses.

Macy’s Gets Contemporary With Latest Private Label 

Macy's Launches And Now This for the Fashion

What: Large-scale shopping malls in Bangkok and some 10 provinces are closed to comply with the latest Covid-19 curbs.

Why is it important: Covid19 cases are surging in Asia, from South Korea to Thailand.

Sixteen branches belonging to Central Department store will be closed from 12 to 25 July. Shopping malls under the Mall Group, including all branches of The Mall, the Emporium, the Emquartier, and Paragon Department Store, are also closed.

Supermarkets will remain open from 8am to 8pm, while key service businesses at these premises, including eateries (takeouts only), banks, pharmacies and mobile phone shops are also open.

Major malls close for two weeks to curb infections

What:   Hema is closing down its entire operations in the UK to focus on its core markets

Why it is important:  The race is not anymore on scale economies and network size, but making sure each individual operation is profitable and efficient.

Hema has announced the total closure of its 6-stores strong operations in the UK, effective by the end of the summer. The CEO explains this decision by the search for sustainable growth on its core markets, namely the Netherlands, Belgium and France. The company established its presence in the UK in 2014, and it is highly probable that the difficulties inducted by the Brexit also explain this decision.

PRESS RELEASE - HEMA focuses on core markets and withdraws from the United Kingdom

What: Unilever has invested USD 275 million to expand the production capacity of its manufacturing facilities.

Why it is important: Mexico continues to be an important growth lever for the company.

The investment will help increase export capacity to USD 1 billion over three years to the United States, Canada, the Caribbean, Central and South America, and Europe. The investment will also create 3,000 more jobs in Mexico.

Unilever’s $275 Million Mexican Investment 

What: A multitasking salon opens at the Knightsbridge store.

Why is it important: Expected to be more important in the future, beauty services are developing in department stores as a great way to increase customer loyalty and time spent in store.

Harrods has been refurbishing and expanding its beauty halls over the past three years to create one of the largest offers in the country, and worldwide. The new halls currently span 90,000 square feet on the fifth floor, and Hair and Beauty Salon, which puts a strong focus on wellness and services, adds a further 16,985 square feet.

The space was created by the London-based Sparcstudio Design, and based on a 1982 picture of the store. It features glossy peach marble, cream stone counters and powder-pink walls with gold finishes. Treatment spaces include a Backwash Room, Conditioning Bar, Hairdressing Rotunda, Eye Zone, and a Hair Extension Library.

The Hair Extension Library is packed with an array of colours, lengths and styles allowing customers to get their extensions on the spot. The salon’s Backwash Room was inspired by traditional Japanese head spa rituals. It offers customers a “facial” for the scalp, a head massage, and a trip to the Conditioning Bar, for bespoke treatments.

Some 43 beauty brands are on offer with several Harrods exclusives, including Sarah Chapman’s Overnight Facial; Aromatherapy Associates’ City Serenity Bath & Shower Oil; Philip Kingsley’s Mayan Vanilla & Orange Blossom Elasticizer, and Harrods’ first beauty box, which contains an assortment of hair and skin care essentials chosen by the Harrods beauty buying team.

Other treatments include nail art by Townhouse, laser hair removal, waxing, massages, body wraps and facials. There is also an Eye Zone, which offers eyelash extensions, Anastasia Beverly Hills eyebrow treatments, and Dr. Dennis Gross LED light treatments, and Oxygen Flash Facials.

Hair by Harrods

What: It will be located in Suseo Station Transit Centre.

Why is it important: Shinsegae said the operating area would be about 83,000-square-meters, and it would become its second largest department store after its Gangnam Branch.

The project aims to develop a 115,927-square-meter site around the SRT Suseo Station in Gangnam District, Seoul, into a complex of commerce and businesses.

It is the second time the department store is participating in a project involving a train transit complex. In 2016, the company opened a department store branch at Dongdaegu Complex Transfer Center at Dongdaegu Station in Daegu.

Shinsegae Department Store to build new landmark in Suseo

What:  The passing away of an iconic Filipino entrepreneur

Why it is important: Mr. Tancoco is well-known in the country for having enabled international luxury brands to enter the market in the 1950’s

Bienvenido Tancoco Sr, founder of Rustan Group in the Philippines, passed away this week. Tancoco is famous for having introduced many luxury brands to the Philippines in the 50’s, such as Yves Saint Laurent and Christian Dior, remaining an operator of these brands for a long time. Mr. Tancoco also served as the ambassador to the Vatican from 1983 to 1986.

Rustan’s is composed, among others, of 5 department stores in the Philippines as well as Stores Specialists, a franchise operator for foreign brands.

Benny Tancoco

What:  A reflection on the key actions taken during the pandemic to help the company strive

Why it is important:  In addition to omnichannel improvement based on the physical stores network, the CEO mentioned key partnerships with Amazon and Sephora (in a similar manner to what Manor does with FNAC and Decathlon), as well as a strong audit of the product and brands portfolio, leading to a more focus assortment.

Michelle Gass, CEO of Kohl’s, was interviewed during the NRF Retail Converge event (see our report here) and provided some insights on her way to deal with the pandemic and the key lessons:

• A careful audit of the department store’s brand portfolio to make sure its offer was at the same time coherent, adequate to customers’ needs and efficient (leading to a reduction of 20% of the assortment between 2019 and 2021, including the discard of 25 private labels),
• Capitalize on the real estate portfolio and variety of formats to provide omnichannel services (BOPIS, kerb side pick up, ability to accept returns from Amazon products),
• Partnerships with specialist retailers such as Sephora, which will expand to 850 stores within 2023. The target is to send a message to other specialist retailers and be attractive thanks to its physical stores footprint, as well as its digital capabilities.

Kohl’s CEO Brand Partnerships, Omni Services Position the Department Store for Future Success

What: With sales increasing, the retailer plans to invest USD 500 million to build a digital ecosystem.

Why is it important: Neiman Marcus is developing its omnichannel strategy, both betting on stores and e-commerce.

Neiman Marcus no longer reports public financial results but its CEO provided figures to The Wall Street Journal and WWD showing comparable sales for the February-April period rose 43.8% compared with the same period last year. Compared with 2019, sales were down 6.6% and e-commerce sales represented about 35% of total revenue, rising 1.6% from 2019. Also, Neiman’s top 20 luxury brands were up about 35% in the fiscal third quarter compared to the pre-Covid period. Men’s, shoes and handbags were the best categories, while women’s apparel and formal wear have not recovered yet.

The company plans to invest more than USD 500 million over the next three years to refresh stores omnichannel capabilities, speed up its supply chain, expand same-day delivery and improve its digital business. Neiman Marcus’s landlords are kicking in USD 100 million of the planned investments. The investments also include an agreement to acquire Stylyze, a machine learning software operating under SaaS, that curates outfits for customers based on their past purchases and browsing history. The acquisition will allow Neiman Marcus to engage even more with luxury customers, and convert one-time shoppers into lifetime customers, attracting them with automated suggestions.

CEO Geoffroy van Raemdonck said he wants to focus on high-end luxury customers, including the 40% of Neiman Marcus shoppers who spend at least USD 10,000 a year with the chain, while also attracting new customers. The average order size for new customers increased more than 80% in the recent quarter compared with a year ago. Neiman Marcus ended the quarter with inventory down 31% compared with a year ago.

Neiman Marcus Group Accelerates Digital Capabilities with Intended Acquisition of Stylyze (Press Release)

Neiman Marcus Rides a Rebound in Luxury Shoppers - WSJ

Neiman’s Turns Toward Technology With Heightened Investments – WWD