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

Read also:

• 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

What: The technology-enabled “store of the future” is developing now, in several different directions.

Why is it important: The brick-and-mortar store is evolving, customer needs changing and technology advancements blurring the lines between channels.

Here are three store of the future concepts that customers don’t have to wait to experience.

• 21st-century vending machine

Travel retailer Hudson is rolling out an automated airport store concept it envisions as a miniature shopping mall. Interactive touchscreens showcase merchandise images and provide product information, while personalized augmented reality (AR) technology provides eyewear customers with a fully-immersive, virtual try-on experience.

It is also worth mentioning the eight-story automated “car vending machines” offered in at least 29 locations across the U.S. by online used auto retailer Carvana. Customers receive a commemorative, oversized Carvana coin to insert into the machine, activating the automated vending process, and then watch their vehicle descend.

• Digital-only stores

Taco Bell just opened its first digital-only U.S. location in New York, where customers can use one of 10 self-service digital menu kiosks or order ahead digitally. Meanwhile, Chipotle is piloting a store concept called “Chipotle Digital Kitchen. Customers must order in advance via the Chipotle website, app, or third-party delivery partners, and pick up their food from a lobby.

Starbucks was a pioneer in digital-only stores, opening its first-ever Starbucks Pickup store in New York City’s Penn Plaza in late 2019. This location uses the mobile order & pay feature of the Starbucks app as the primary ordering and payment method for customers.

• The store comes to you

Another interesting future store concept comes from Northeast grocer Stop & Shop (an Ahold Delhaize USA banner), which has piloted driverless vehicles that act as stores on wheels. Shoppers summon the vehicles with a smartphone app, head outside, unlock its doors, then personally select the grocery products they would like to purchase.

Three ‘store of the future’ formats you can visit today 

What: The department stores want to better collaborate with younger generations thanks to simplification and paper consumption decrease.

Why is it important: The company introduced the new system knowing that 80% of its employees are Millennials and Gen Z people.

Hyundai Department Store has taken the initiative to change its reporting system as part of efforts to transform into a better workplace for the M-Z generation, which refers to those born between 1980 and the early 2000s as a combination of millennials and Generation Z.

The company introduced a simplified electronic reporting system that is available not only on PCs but also on mobile devices. Employees can now report to senior colleagues simply by sending notes through a messenger app. The company also introduced a group chat function.

In a survey it conducted last year with its employees, 67.4% said that reports were the most difficult part of their work.

Hyundai Department Store Upgrades Reporting System in Favor of MZ Generation

What: Brookfield Asset Management buys out the full control of Brookfield Property Partners for USD 6,5 bn.

Why it is important: Mall management is getting under the full control of owners, who have in mind selling a part of their assets once the economy bounces back.

Last year, Simon Property Group bought Taubman Centers in a scaling move. Brookfield Asset Management just announced the purchase of the remaining shares in Brookfield Property Partners (including Brookfield Place mixed-use real estate project in Manhattan) for USD 6,5 bn. Their project is to position themselves on the market, control the brand proposition within each of their malls, as well as be in the best position to sell a part of their locations once the opportunity arises, in a similar posture to Unibail-Rodamco-Westield who announced to be getting ready to do so next year.

Brookfield’s $6.5 Billion Buyout Approved

What: Fast-fashion sees a decline as consumers become more sustainably aware.

Why it is important: Apparel companies seen as bad for the environment face "reputational risk."

According to a UBS survey, fast-fashion retailers could face revenue declines of 10% to 30% over the next 5 to 10 years as more consumers become aware of the environmental and human costs of apparel production.

Apparel companies in fast fashion, like H&M, are addressing consumer concerns through experimentation with textiles and releasing eco-minded collections.These siloed efforts might not be enough. Consumers are becoming more aware about the impact their clothing choices have on the environment. This has resulted in a change of buying behaviour to focus on buying less and invest in more sustainable pieces.

Fast fashion faces steep declines in the next decade or sooner

What:  A new partnership with a fashion retailer for the iconic American department store

Why it is important: The approach is very different from the previous (and failed) partnership with Jeffrey’s, as Nordstrom is positioning itself as a platform for new brands, rather than using Dover Street Market as a way to emphasize its fashionable positioning.

Nordstrom has announced a new partnership with fashion retailer Dover Street Market and will present seven brands belonging to the DSM incubator in stores and online. Said brands cover Men’s and Women’s RTW, accessories and shoes areas.

Dover Street Market has never partnered with another retailer before and uses Nordstrom as a way to leverage the visibility and exposure of the brands belonging to its incubator.

Nordstrom on the other hand sees this partnership as a way to support newcomers to fashion, as well as to bring unusually and never seen before products and brands to its customers. Very interestingly, this new approach is quite different from Nordstrom’s previous (and failed) buyout of Jeffrey’s, which had the delegated task to bring fashion sense back to Nordstrom. Here, the partnership is all about collaboration for the sake of new brands, without any delegation of any sort.

Nordstrom Space to Offer Dover Street Market Incubator Brands 

What:  Now that there is light at the end of the tunnel, customers are back in stores, which changed significantly in the course of a year

Why it is important:  Since customers grew accustomed to many of the strategies listed here, the basis playbook changed with the addition of many must-haves (which used to be considered as gadgets prior to the crisis).

Retailers and brands had to rethink their operations during the Covid crisis and the consequent lockdowns. Now that there is light at the end of the tunnel, with some countries already experiencing a back to normal kind of situation, customers go back to stores, only to find that they have changed and massively adopted new features:

• Frictionless payment options: contactless, self-checkout,
• The store as a part of the digital ecosystem: kerb side pick up options, BOPI, store inventory available online,
• Safety protections considered as a must-have (gel, social distancing, new ways of displaying products) including when redesigning stores,
• Addressing local customers with a carefully curated product offer and marketing strategy,
• Reviewing the set up of the stores: since they are also here to serve as a local fulfilment platform, the net retail space is not king anymore, as back rooms increase to be able to serve that strategy,
• Private shopping increased in quantity and quality during the pandemic, and customers are now expecting this as a basic service,
• Stores are also ‘social hub’: since they had to find ways to stay open during lockdowns, including creative reasons not always linked to their primary activity, they acquired new savoir-faire and techniques that will prove key in making sure customers are coming in, and returning. Therefore, the store is confirming its central position in the digital ecosystems retailers and brands have built.

Take a Look Inside The Post-Pandemic Store

What: Hainan is growing fast and taking the share of the lion in terms of international luxury market shares

Why it is important: the Chinese authorities keep this growth under a very close watch, this Eldorado might not be risk-free for international brands.

To boost domestic consumption and increase the recuperation rate, China turned the island of Hainan into a duty-free shopping hub. Combined with the international borders closure, this results into Hainan being the epicentre of international luxury spending, with total sales amount expected to grow sevenfold by 2030. For now, 50% of sales are in beauty and cosmetic products, however hard luxury is growing strongly as well, from a third of sales now.

This is obviously fuelling international luxury players such as LVMH which announced that the Chinese market helped it not only overcome the 2020 difficulties, but post a growth in comparison with pre-pandemic levels of 2019.

However, the structure of the market, and the permanent control enforced by the Chinese authorities fuel worries within brands that they might loose control of their distribution, and encourage, unwillingly, the expansion of Daigous (parallel resellers).

Hainan ‘on fire’ as luxury’s centre of gravity tilts to China

What: During lockdown, U.K. businesses were rethinking commercial spaces and preparing for a surge in post-pandemic demand.

Why is it important: London high streets’ predicted shift to smaller, hyper-local and new commercial formats should be observed as an example of what might happen in capitals in the future.

The British economy is estimated to grow by 4% this year — and by 7.3% in 2022 — and much of that growth will be powered by British tourists, returning office workers, and the international rich who already own homes in the U.K., and are planning to spend their summer here.

Interestingly, Matt Farrell, managing director of Trophaeum, said that his company has not lost any retail tenants over the past 12 months, and it has been seeing demand from high-end restaurants seeking space.

Grosvenor Britain & Ireland is landlord to about 500 retailers. The company is willing to “selectively invest in tenants to help them pivot their businesses and grow post-pandemic”, showing confidence in the future of physical retail.

Anita Balchandani, partner at McKinsey, said that fashion and luxury sales will recover more quickly in the U.K. than in Europe due to the country’s rapid vaccine rollout. Balchandani believes that physical stores that know how to create a “relevant experience” will thrive. She added that “hyper-local” shopping will also be “a very dynamic and interesting space”.

Diane Wehrle, marketing and insights director at Springboard Research, believes that smaller high streets will benefit from the new hybrid working model that’s emerging, with people engaging more with their local neighbourhoods on the days they spend at home. She believes that once rental rates are “rebalanced” in traditional retail neighbourhoods, there will be ample room for new commercial formats, experiential and community spaces.

U.K. Businesses Lay Groundwork for Recovery 

What: The pandemic stifled many fashion retailers, but some brands and merchants seized upon opportunities that opened up during the crisis.

Why is it important: Retailers are negotiating discounts on store lease as well as marketing support from landlords.

It’s less risky for big, long-standing retailers to open stores in the current economic climate, given their clout with landlords, their rapidly growing digital businesses that support brick-and-mortar operations, and the familiarity shoppers already have with them. Burlington Stores, Ulta Beauty, Urban Outfitters, Sephora, Athleta, Aerie, TJX Cos., Old Navy and Dollar General are among the retailers opening significant numbers of stores this year. They’re taking advantage of mall vacancies, landlords loosening up on rent and lease terms, and forecasts for the second half of 2021 that predict higher levels of shopper traffic. Malls already are seeing increased foot traffic as a result of all of those factors.

Pinko, the privately owned Italian fashion brand with about 260 freestanding stores and 1 500 shops-in-shop inside department stores around the world, opened a 5,000-square-foot in Manhattan’s SoHo district. It’s a playful, airy, three-story environment with a huge glass window for a full view into the store, exposed brick walls, open sales floors, lilac and fuchsia carpets, and an inflated purple man known as Peter Dance.

According to the company, 2020 was its first negative performance in 30 years. In 2019 Pinko generated sales of 220 million euros. “Then we obviously took a hit in 2020, but we are now aiming at 240 million euros for 2021, and we are confident we can achieve it,” said Emanuel Bianchi, Pinko’s chief marketing officer.

The Carini Group, a real estate brokerage, represented Pinko on the real estate deal. “We have negotiated lease terms for Pinko that are at a very significant discount from the overtenant’s lease, indicating continuing real estate savings opportunities for retailers planning expansions in New York City and in other major U.S. markets,” said Alex Carini, president and founder of the Carini Group. He said the yearlong agreement calls for USD 30 000 in monthly rent or 15% of sales value, whichever is greater.

In mid-March, designer Adam Lippes opened a “flagship” in Brookfield Place, the mixed-use complex for retail, dining, offices and events, situated by the Hudson River in lower Manhattan. “There was a lot of deliberation and conversations about the calculated risks,” Jeannie Yoo, the president of Adam Lippes. Yoo declined to divulge any details about the lease at Brookfield, though she did say, “It was not only about the financials. It was about the marketing support, the Brookfield name. They have a lot of experienced marketing and PR professionals.

Gene Spiegelman, vice chairman and principle of Ripko Real Estate, said that over the last year, Ripko has been in discussions with six to nine direct-to-consumer brands looking to have a brick-and-mortar location, but not ready to commit to traditional 10-year leases. More likely, they would go for three-to-five year leases with options to get out of the lease on a six-month notice, according to Spiegelman. “Some of these brands were showcased in Barneys or Saks, or hoping to be in Nordstrom,” he said.

Independents Open Shops Despite 

What: BoF sits down with Klarna CEO Sebastian Siemiatkowski to discover innovations in the path to purchase.

Why is it important: Buy Now, Pay Later options, which are set to grow at a 28% compound annual growth rate globally over the next five years.

The below news is a condensed version of a sponsored feature paid for by Klarna as part of a BoF partnership.

Founded in 2005 with a mission to offer a more flexible payment solution for shoppers online, Swedish tech company Klarna has rapidly evolved its scope and strategy to become a leading global retail bank, payments and shopping service. Today, it serves 90 million active consumers partnering with over 250 000. It counts H&M, Ganni, Charlotte Tilbury, Macy’s, Acne Studios and Sephora among its roster of clients.

BoF: What insights can you share on evolving consumer attitudes to payments?

Sebastian Siemiatkowski: The ongoing shift away from traditional credit cards and towards debit has been accelerated and further amplified by the pandemic. Credit card applications have dropped 50% while over USD 100 billion worth of credit card debt has been paid off.

Additionally, we’re tracking how the pandemic has accelerated the shift to contactless. Shoppers really love the Apple Pay and Google Pay experience, and we have launched a number of in-store initiatives, including virtual cards for digital wallets. This has facilitated alternative payment options within physical stores while also [answering] consumer demand for access to contactless solutions.

BoF: How is the relationship between Klarna and its merchant partners evolving?

Sebastian Siemiatkowski: I generally think about retail in two different pieces. One is around discovery and curation, while the other piece is purely the product and brand. When we are trying to help retailers, it’s about presenting their customers with useful, curated options. Historically, if you think about the Amex Platinum Card, part of the idea was the [customer] would go into a restaurant and the owner would think, “It’s a Platinum Card, so I need to ensure I offer my best wines and food.” At Klarna, we can help our retail partners curate more efficiently with the consent and interest of the consumer in mind.

BoF: How is customer data shared and actioned between Klarna and its partners?

Sebastian Siemiatkowski: At Klarna, data must be approached from a customer-centric perspective first, which then benefits our retail partners. When we process a transaction today, Klarna sees the SKU (stock keeping unit) data and full digital receipts, which allow us to create a much richer experience for consumers post-purchase. We can provide customers with additional value, such as target offers relevant to past purchases. It can [translate] into an increase in sales for our partners.

One further data aspect is our Wish List functionality on the Klarna app, where we allow customers to save their favourite items from across the internet. If a shopper has saved a pair of shoes, they will be linked to offers on the item or an indication on where to purchase if it has gone out of stock. The customers feel like their data is working on their behalf and that is valuable to our retailers.

BoF: What payment solutions and technologies should luxury brands prioritise?

Sebastian Siemiatkowski: In luxury fashion, we are seeing the most traction with our product offerings that allow customers to pay in three or four interest-free instalments, depending on the market they are in. Where we see a big opportunity is with our Try Before You Buy offering, where consumers pay nothing at the time of purchase and pay everything 30 days later. We’re seeing it in China, with Buy Now Pay Later accounting for 50% of Alipay’s total volume, and we have seen Amazon already beginning to experiment with [this solution] as part of the Amazon Prime Wardrobe offering.

Klarna’s New Growth Levers for Retailers 

What: 88% of shoppers saying they are more likely to shop with a beauty brand that offers a BNPL option.

Why is it important: As beauty is a critical business for department stores, data shows all age groups have increased their orders during the pandemic.

“Klarna’s beauty survey has uncovered new consumer insights and trends that beauty brands should keep in mind as they plan their strategies for the rest of the year,” said David Sykes, head of U.S. at Klarna. “For example, a key learning is that shoppers across all generations agree that brand values play a significant role in their purchasing decisions when shopping their favourite beauty items.”

More consumers in the Baby Boomer generation said sustainability values were most important when shopping for beauty products (31%) than Gen Z (19%). Instead, diversity and inclusion was named the most important value by both Gen Z at 40% and Millennials at 31%. When asked what items beauty shoppers want most, skin care came out as the top beauty category shopped during the pandemic.

As vaccines become available, Klarna’s survey found many young shoppers plan to return to stores to shop for beauty — 30% of Gen Z and 24% of Millennials. However, while 67% of respondents said they preferred shopping in-store for beauty pre-pandemic, 42% said they plan to continue to shop as they currently are even after the vaccine rolls out.

Over the past year, the survey shows that Millennials were the top generation to prefer mobile shopping at 42.5% while all other generations preferred shopping on a desktop. Overall, the option to buy now, pay later was found to be the “biggest factor in improving the online shopping experience” during the pandemic in all age groups. 88% of shoppers saying they are “more likely to shop with a beauty brand that offers a BNPL option.”

“A lot of our partners are looking for new customer-centric strategies to drive customers back to store,” said Alex Fisher, Afterpay VP of retail, adding that there has been “massive demand” for Afterpay to be at beauty retail stores.

According to a BareMinerals spokesperson, in-store locations typically see an average order value of USD 42, but this has increased to USD 96 since the start of its Afterpay partnership. Additionally, the repeat purchase rate for Afterpay customers is over 20%, which is higher compared to other payment methods, the spokesperson said.

Klarna Survey Reveals Changing Consumer Behaviors in the Beauty Sector

Buy Now Pay Later platforms are catching on in beauty stores

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What: Anil Patel, CEO of HotWax Commerce, describes how a "store crediting framework" can bolster omnichannel sales.

Why it is important: A majority of retailers still view different shopping channels as completely separate departments in their organization.

As retailers and brands continue to accelerate their digitalization strategies, Anil Patel, CEO of HotWax Commerce, says they’re missing a key component to success: properly crediting and incentivizing physical stores at the unit level. Indeed, Patel found that very few brands have considered changing their store crediting policies to incentivize a company-wide adoption of their omnichannel vision, starting at the associate level.

Associates may view online sales as a threat to their job security and will likely attempt to sabotage the company’s initiatives unless they are brought into the strategy. Instead of reacting to that reality, retailers should anticipate that tension and create frameworks to eliminate it.

Most retailers aren’t deeply aware of their customer’s shopping journeys. Without the right technology in place, you won’t have the visibility into whether your online shoppers browsed in-store and vice versa. Studies also show that brands see an increase in online sales from regions where they’ve recently opened a physical location, which means your stores should be credited for participating in that revenue creation.

A store crediting framework is a policy intended to reward stores and its associates for driving or assisting sales (whether online or in-store). In the past, store crediting frameworks have been very straightforward and based on the assumption that online shoppers shop online and offline shoppers shop in-store. The first step to achieving a truly omnichannel approach is to eliminate channel-based performance reporting. Shopping channels should be irrelevant to compensation because it is ultimately irrelevant to the customer.

Studies have shown that a majority of retailers still view different shopping channels as completely separate departments in their organization, with their own P&Ls. For many retailers, implementing an omnichannel solution requires a paradigm shift and significant organizational change to eliminate or bridge channel silos and unify all staff members around the customer.

Why Store-Level Incentives Can Be Key to Omnichannel Success 

What: Three years after opening, Shinsegae Duty Free is a victim of the collapse in inbound and outbound tourism driven by the pandemic.

Why is it important: The premises will be converted to expand Shinsegae Department Store.

Shinsegae Duty Free’s full-year revenues in 2020 slumped -45.9% to KRW 1 693 billion (USD 1 53 billion). While downtown duty free sales held up better than the disastrous airport business (down by just -22%  year-on-year in Q4 compared with an overall -47.5% fall), that result was spurred almost entirely by a resilient group daigou (Chinese personal shoppers) channel. Shinsegae Duty Free’s flagship store in Myeong-dong will continue to serve that business.

Shinsegae invested around KRW 75 billion (USD 69 million at the time) in opening the 13 350 sqm store in 2018 amid buoyant times for South Korea’s duty free industry.

Shinsegae Duty Free to close Gangnam store in July

What: The athleisure giant is the latest brand to launch resale.

Why is it important: The initiative will allow Lululemon to better control the market, collect data and benefit from the resale profits.

A resale program called “Lululemon Like New” will first be tested in Texas and California.

Shoppers can trade in like-new Lululemon products starting in May and will receive a USD 5 to USD 25 gift card. The company will be cleaning and reselling the used garments starting in June, piloting the program in about 80 stores in same markets.

Lululemon joins a slew of brands that are launching resale. As for Nike with its “Nike Refurbished” program, it’s a way to see some of the profits that have gone to marketplaces like Poshmark, Tradesy, and Thredup. Lululemon fans also have dozens of buy-sell-trade groups on Facebook, where shoppers hunt and splurge on their favourite gear.

Lululemon Is the Latest Brand to Launch Resale 

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• Nike is launching “Nike Refurbished”

What: Hudson’s Bay is embarking on an ambitious plan to upgrade its flagship properties in its home country of Canada.

Why is it important: The retail group announced that it will build a 25-story office tower, as well as “transform” its existing retail space in downtown Montreal.

The mixed-use real estate project is expected to be underway by 2023, with its completion targeted for 2027. According to president and CEO Iain Nairn, the development will include a “curated assortment” of merchandise in a “digitally connected store with elevated service.”

The office tower will align with LEED standards. “This project presents an opportunity to establish a multi-functional store that continues to offer the brands and services that Canadians trust us to deliver, while developing new uses for space, such as showrooms or concierge services, that reflect the modern lifestyles of our customers and the vibrancy of downtown Montreal,” Nairn said.

Hudson’s Bay Flagship in Downtown Montreal to Undergo Transformation

What: It’s the third such convenience store to feature Just Walk Out Shopping tech in the UK.

Why is it important: Amazon Fresh looks like a store, but really it’s an online shop guarantying 100% data capture.

Shoppers use the Amazon app to enter the store (no Prime membership required) and buy items, bagging them as they go. At the end, they don’t need to stand in queue or check out. They are automatically billed as they leave. The store will offer the private food brand, ‘by Amazon’, Customers will also find a range of hot food throughout the day and on-the-go meals for breakfast, lunch and dinner.

Amazon Fresh isn't a physical store, it's an online shop, according to Jonathan Haywood, Head of Operating Model Redesign, Loyalty & CRM at Holland & Barrett. Haywood notes that Amazon Fresh is doing a good job at disrupting some of the classic problems retailers face, including customer identity and data.

Amazon, therefore, has created a bricks and mortar proposition that looks and acts like a shop, with some differential customer propositions that draw people to it (no queuing etc).  But underneath all that, it’s an online shop that guarantees 100% customer data capture.

Haywood bets we will see a rapid rotation of inventory, not only predicated on top sellers, but on repeat rate, basket expansion and anchor/destination SKUs for some of the smaller customer cohorts.

Amazon opens third London Amazon Fresh store, in White City 

What: Selfridges strategy for reopening on 12 April.

Why is it important: The famous department stores bets on sustainability.

Last year, Selfridges “Project Earth” was launched when the store opened between lockdowns. It’s an on-going, five-year move towards greater sustainability including only using PVC-free vinyl, signage for the project will be from recyclable and sustainably-sourced materials. As part of “Good Nature”, the creative theme for Selfridges that will run through 2021, and while the shop waits to reopen, a weekly podcast examines the relationship between pleasure and nature.

The shop’s windows, rather than having merchandise, will feature a single image commissioned from artists, and will be shown across the stores, both London, Manchester and Birmingham. Independent stores within Selfridges will feature vintage and upcycled products from iconic outdoor brands including the North Face “Nuptse”. Other sections will be devoted to rental rather than purchase, a repair concierge will be on hand.

There will also be an “experience concierge” who will be able to put together opportunities, from skate sessions to a collection of treatments in the beauty studios and meals, including the new restaurant concept Hive, where specially built beehives will also receive their first colonies.

How One London Department Store Is Planning To Thrive In 2021