What: the programme is called the Livestream Shopping channel

Why is it important: having already hosted more than 50 virtual events since last year, it formalises the retailer’s commitment to the digital and service-oriented business model

Livestreaming has become popular in Asia, but in the U.S., it’s in the very early stages. Some brands have begun experimenting with the format, especially in the beauty category and on Amazon Live and TikTok.

The virtual events will allow Nordstrom shoppers to seamlessly shop while engaging with the hosts and ask questions about the featured products. The first event on 18 March is a virtual styling tutorial with Burberry and stylist José Ramón Reyes, including a Q&A session and a recorded runway show stream.

This new shopping channel will give customers real-time access to Nordstrom employees and brand partners as well as experts in the beauty, fashion, and home categories. Six events are already planned, including four events related to cosmetics and beauty.

Nordstrom worked with an external partner to create the Livestream Shopping customer experience but didn’t specify the partner.

Nordstrom’s Next Channel Livestreaming 

Nordstrom Introduces Livestream Shopping

What: Saks pushes into luxury ecommerce

Why is it important: online experience will evolve and expand with “a hybrid retail and marketplace platform”

Hudson Bay, with USD 500 million from private equity firm Insight Partners, is establishing a standalone e-commerce company known as "Saks." Marc Metrick, who has been running Saks Fifth Avenue, will be CEO. The private equity firm will take a minority stake in the new company, which is valued at USD 2 billion.

The department store's 40-store fleet will operate separately as "SFA" and remain wholly owned by HBC. "Saks Fifth Avenue" will be the customer-facing branding for both.

Transforming the Saks Fifth Avenue stores and e-commerce businesses into separate companies could be a prelude to spinning off the e-commerce operation into a public company. Saksfifthavenue.com generates about USD 1 billion in annual sales. That’s roughly twice the volume of the Mytheresa luxury website that went public in January and saw its stock price quickly soar.

HB said strategic investments will be made to “evolve and expand” the online experience, including strengthening service, styling capabilities and data-driven personalization. Saks e-commerce business will also feature “a hybrid retail and marketplace platform, expanding its assortment while maintaining a curated experience.”

Saks and SFA will work in conjunction to continue delivering a seamless customer experience. Returns, exchanges and SaksFirst credit cards will continue to be accepted both online and in stores.

Saks will lead marketing and merchandising across both businesses, while the stores will fulfil the physical functions of Saks, such as buy online, pick up in-store, exchanges, returns and alterations. Saks will retain ownership and control of the Saks Fifth Avenue intellectual property, including the brand and visual identity.

Larry Bruce has been appointed president of SFA and will report directly to HB’s chairman and CEO, Richard Baker. Bruce has been with Saks Fifth Avenue for nearly 20 years, including the past eight years as director of stores. Sebastian Gunningham will join the company’s board of directors and serve as an adviser. He was previously a member of the executive team at Amazon and led its marketplace expansion, among other large technology and operational divisions at the company. He has also held executive roles at Apple and Oracle, among other leadership roles.

Saks stores and ecommerce to become separate companies

What: the new format has been inspired by Nordstrom’s neighbourhood stores

Why is it important: it comes as John Lewis plans to shutter 8 more department stores

John Lewis has been opening concessions in its Waitrose supermarkets. And while only a few have opened so far, it's reportedly planning to ramp up this process considerably as chairwoman Sharon White wants most of its 331 supermarkets to have one within the next year to 18 months.

It added that the new plan to expand the local format has been inspired by US chain Nordstrom’s neighbourhood stores.

While John Lewis remains the only one of the non-luxury-specific UK department store chains not to have faced some sort of collapse in recent years, it's still been under heavy pressure and has been forced to look at new ways of growing its business and maximising its efficiency.

In the face of a fast shift online by consumers (which means the company expects 75% of its sales to come via the web by 2025), the business needs to make sure that its physical spaces really pay their way.

John Lewis plots hundreds of shop-in-shops in Waitrose 

John Lewis is opening concessions in sister brand Waitrose 

What: the retailer is aggressively introducing active labels, across the athleisure, performance wear and fitness gear categories

Why is it important: Nordstrom plans to become a stronger destination for active categories

The department store is rapidly introducing labels and products never before offered by the retailer, the goal being to carry 75 new labels to Nordstrom, Nordstrom Rack stores and websites. Brands being introduced in March include Eleven by Venus Williams, Bad Birdie, and Gramicci, and among the brands that were introduced within the last three months are IVL, Outdoor Voices, Brooks Running, On Running, Malbon Golf, and Parks Project. For fitness and training, Nordstrom recently began selling items like Bala weighted bangles, Sweaty Betty running gloves, Topo Designs hiking backpacks, Smith snow helmets and ski goggles, and Yoga Design Lab yoga mats.

Also new to the mix: Hyperice and Theragun massage devices, and digital fitness equipment such as the smart Tangram Jump Rope, which syncs to one’s phone to track jump counts, and Tonal, a high-tech, at-home digital weight and personalized coaching system.

Nordstrom’s strategy to become a stronger destination for active is internally designated “active ambition.” It’s a key element in the retailer’s strategy for long-term growth and it’s logical considering the nation’s interest in health and fitness has only intensified with COVID-19.

In December, Nordstrom launched an active microsite, enabling customers to search for active brands by activity or category for the whole family. On the microsite, shoppers can also find fitness and wellness advice, expert tips, and product and performance guides to support fitness and wellness goals.

Currently, Nordstrom has more than 200 brands in its active portfolio including men’s, women’s, kid’s, shoes and athletic gear divisions, though the mix constantly changes and evolves depending on customer preferences.

Nordstrom’s in-house Zella private brand, Nike, Adidas, The North Face, Canada Goose, Sweaty Betty, Ivy Park, Beyond Yoga, Alo, Vuori and Rhone are among the retailer’s important active collections. In athletic shoes and sneakers, key brands have been Hoka, Brooks, On Running, Asics and Teva, to name a few.

Nordstrom Pumps Up Active 

What: The Toronto-based retailer's marketplace strategy brings a broader assortment to thebay.com

Why is it important: With marketplace vendors, there is less risk for Hudson’s Bay since it’s not purchasing the products, but there would be less profit per transaction

Hudson’s Bay has transformed its e-commerce website into a marketplace format, which launches 19 March with an augmented assortment. By the end of 2021, Hudson’s Bay expects to have added more than 1 000 brands to thebay.com.

Categories Hudson’s Bay is introducing Friday through its marketplace include pet supplies; books; stationery; health and wellness; gourmet food; electronics; vintage designer handbags, and sports equipment.

According to Hudson’s Bay, thebay.com expects to generate about CAD 1 billion in 2021. The website attracts 220 million visits annually, nearly half of whom come from mobile, and has 5.7 million loyalty customers.

Iain Nairn, president and CEO of Hudson’s Bay, said getting brands onto the marketplace is faster and easier than the normal wholesale process. “It can be as quick as a week for a brand to get on our website,” versus the six-to-seven-month normal wholesale process involving buyers visiting showrooms and placing orders. Supported by the marketplace solution by Mirakl, a French firm, Hudson’s Bay can react rapidly to consumer trends and expand its assortment in a matter of days.

With marketplace vendors, there is less risk for Hudson’s Bay since it’s not purchasing the products, but there would be less profit per transaction. Hudson’s Bay does make money by charging the third-party sellers on its marketplace a commission based on sales plus a monthly CAD 30 fee. Hudson’s Bay takes the transaction and sends it to the seller, which holds the inventory and handles the shipping and customer service.

With the marketplace, “We can tap into inventory already available,” Nairn said. “We now have the ability to add millions of products to our offering, quickly adapting to customer demand. The response from the seller community has been extraordinarily positive as more and more brands seek to join this modern and convenient shopping experience.”

Hudson’s Bay Launches an Online Marketplace 

What: Nordstrom partners with Package Free giving customers the ability to buy in bulk to reduce waste

Why is it important: an innovative business model to challenge traditional product offerings with zero waste as the main focus.

Zero-waste retailer Package Free will be the star of Nordstrom’s Pop-In shop, available in select Nordstrom stores and online through May 9. The Pop-In concept has been known to promote sustainability and the partnership with Package Free offers customers an accessible solution to trash-free living.

Biodegradable and eco-friendly items across all verticals are available including beauty, grooming, kitchen, cleaning, and children’s items. Some products carried by Package Free do have packaging, but they are typically compostable or recyclable, and are vetted by a team of sustainability experts.

Package Free has seen a lot of success and will be offered in select Nordstrom stores including Toronto, Seattle, Chicago, Austin, Dallas, and the New York City flagship. Nordstrom staff are trained on zero-waste tips and living as per the Package Free ethos. In the case of online orders, fulfillment will be handled by Package Free where the company uses 100 percent post-consumer paper to pack and ship orders.

Package Free had physical stores in Chelsea Market and Brooklyn that were closed due to the pandemic, but hope to revive their physical presence again following the initiative with Nordstrom Pop-In.

Nordstrom Wants You to Buy in Bulk, Shop Zero Waste With Package Free

What: Macy’s, Gap and Neiman Marcus will let you buy now and pay later

Why is it important: retailers add BNPL options to attract younger shoppers

Traditional retail chains like Macy’s that derive much of their income from shoppers who pay with a store credit card are making room for a less-lucrative customer: buy now, pay later. Historically, BNPL had been used to spread out the cost of large purchases. But in the past year, a greater number of consumers have used it for items costing less than USD 500.

The emerging payment option is a modern take on layaway plans, allowing shoppers to pay for purchases over time. The difference is they get the goods upfront. Chains from Macy’s to Gap to Neiman Marcus have introduced BNPL options in recent months to attract younger shoppers, who are less likely to use credit cards.

Instead of earning a profit from customers who revolve a balance on their store cards, retailers pay fees to the financial-technology companies that offer BNPL plans, including Klarna Bank and Afterpay.

Macy’s Chief Executive Officer Jeff Gennette said in an interview that the risks are offset by the new, younger customers that BNPL attracts. He said 40% of shoppers using Klarna are new to Macy’s and 45% are under 40 years old. By contrast, slightly more than a quarter of Macy’s existing customers are under 40.

Afterpay Co-CEO Nick Molnar said the firm sent about 45 million customer referrals in December 2020 from its app to its retail partners, on par with traffic generated by social media platforms.

While still fairly new in the U.S., BNPL options are expected to grow to 4.5% of North American e-commerce payments by 2024 from 1.6% in 2020.

Macy’s, Gap, Neiman Marcus Will Let You Buy Now, Pay Later 

What: the lease expiring next October will not be renewed

Why is it important: Covid-19 and online surge explain the store termination

Globus department store announces the closure of Marin-Centre store. 35 retail jobs are at stake.

The company will focus on strategic store renovations (Zurich, Geneva and Basel) and e-commerce. Globus is clearly aiming at positioning itself as a luxury destination, and reports an increase of 50% in e-commerce sales, from 10 to 15% of total contribution.

Globus to close a store

Related item:

• Globus will maintain its renovation plan

What: this is the first Korean duty free’s ESG (Environmental, Social and Governance) Value Management Commission.

Why is it important: Lotte Duty Free laid down an action plan for new eco-friendly initiatives, corporate social responsibility and increased corporate management transparency.

Eco-friendly initiatives

The plan includes replacement of plastic product packaging by biodegradable materials. Plastic bags are also to be replaced with eco-friendly paper shopping bags at all Lotte Duty Free branches.

The Lotte Duty Free logistics centre in Incheon will reduce its carbon emissions by decreasing electricity consumption through the introduction of photovoltaic power. In addition, all one-tonne delivery vehicles will be converted to electric vehicles by the end of this year.

The company will also encourage the listing of “eco brands”, with the opening of an eco-friendly brand zone at its World Tower store in Seoul this year.

In all Lotte stores, further digitisation will be encouraged, for example to replace paper receipts with electronic receipts, sent via SMS on mobile devices.

Local communities and small businesses

Lotte’s STARUPS project, which has been running since 2019, will continue. It focuses on fostering young businesses to create local jobs and revitalise tourism. Lotte Duty Free is also introducing its new CHEERUPS project to help small business owners. It will start with 30 restaurants to support them in reducing waste.

On the governance side, Lotte Duty Free has pledged to strengthen its fair trade compliance systems. It is doing this in order to ensure transparency in its transactions with product suppliers.

Putting the planet and society first: Lotte Duty Free establishes ESG Value Management Commission

What: Luxury brands are leaning into traditional analogue marketing as a way to cut through the noise online and connect with consumers at home.

Why is it important: Post-pandemic, retailers will have to find ways to stand out.

Mansur Gavriel is an interesting example. The brand introduced its first direct marketing campaign this month, in the form of a free 32-page book featuring new editorial imagery as well as past campaigns and original artworks. The brand has already seen a clear jump in new customer acquisition and the next edition will be sent to customers in May. In order to track sales, Mansur Gavriel has a promo code embedded in its book.

Luxury brands have long relied on direct advertising and printed marketing materials. As online spaces are now “flooded” with content, it’s tougher to stand out without investing in paid marketing. Direct mail is also becoming an advertising alternative as brands find a way to prepare for Apple and Google’s upcoming privacy changes, which will make it harder for marketers to track consumer data and personalise.

Books, alongside other physical materials like handwritten notes are like keepsakes, rather than disposable catalogues. Furthermore, top spending customers are increasingly expecting brands to come to them. But there are drawbacks: direct mail is expensive to do well, and tracking is more difficult. Experts say it’s still a worthy investment for luxury.

Post-pandemic playbook - The return to physical marketing

What: coming with an extensive experience in the field, Jean-Marc Bellaiche is to focus on digital

Why is it important: the plan includes an omnichannel strategy, a concept store approach for the store, sustainable projects, exclusive products and a wider local customer base

Product range

“The first thing is to develop new categories in addition to the ones we are historically very strong in, like accessories, men’s and women’s fashion, beauty products, home goods, children’s section. I think there are other areas that we can expand in, like art, cultural items, technology, objects linked to sports” he said. Bellaiche is also eager to seek leadership in the realm of exclusive brands. “Printemps needs to work with fashion schools around the world, with little brands, to return to being a kind of incubator and constantly offer surprises to our clients, with unknown brands” he said.

Sustainability

“This year, we plan to open a space dedicated to the circular economy” he said. The retailer has also been working on a project in the northern French city of Lille with a startup called Revive, which customizes unsold, Printemps-branded garments to give them a second life. Printemps is also looking into second-hand market.

Omnichannel retail

Bellaiche has some ideas about leveraging the department store’s key asset: prime, physical space. Bellaiche comes with a background in data, as chief strategy officer at Contentsquare, a French start-up that tracks consumer behaviour online.The retailer launched e-commerce a year ago, and plans to expand the platform to other product categories. The executive is also planning the use of tablets in stores, so clients can order things that the retailer has run out of — the idea is to set up a system with the brands. And, going the other direction, he would like to push in-store sales through online channels with personal shoppers. E-commerce also offers an opportunity to expand abroad and there are plans to roll out printemps.com, which was launched in the U.K. in November, in the U.S., Asia and elsewhere in Europe.

Customer centricity

“My obsession is the client,” he said. Loyalty program Printania will expand abroad. The plan is also to launch recruiting drive to gain new clients, younger ones, families, different nationalities.

Internal transformation plan

Bellaiche wants to rebuild teams with a more entrepreneurial approach and more women in leadership roles. Internally, Sophie Boquet, who formerly headed Citadium, has taken charge of the store network beyond the Haussmann flagship, while Karen Vernet, general director of offer, will take up relations with brands. External recruits include Stéphane Roth, who is directing marketing efforts and comes with experience in Asia and the U.S., and with digital activities, and the head of transformation Maude Funaro, who has a digital transformation background.

Investments

They will be focused on the digital front, and the company has said it plans to invest more than EUR 40 million a year in this area over the next few years. Printemps also intends to open a store in Qatar in 2022, to coincide with the FIFA World Soccer Cup.

Printemps' transformation plan

What: the retailer creates a new Top of the List Unlocked status

Why is it important: Bloomingdale’s focuses on the highest spenders for the first time.

Consumers who spend more than USD 15 000 per year will receive elevated benefits in the retailer’s new Top of the List Unlocked status, its new most rewarded category.

Top of the List Unlocked members have been increasing their luxury spending during the Covid-19 pandemic when discretionary income wasn’t being allocated to travel and entertainment. Rather than apparel, however, consumers bought fine jewelry and shoes, said Frank Berman, executive vice president and chief marketing officer of Bloomingdale’s.

“It’s a really small group,” Berman said of Top of the List Unlocked members, adding that these highly-engaged consumers on average visit stores and shop online 30-plus times per year. “It’s less than 1% of customers, but accounts for a pretty sizable percentage of our luxury customers. This group is in a different stratosphere. They’re a disproportionate part of our business and they’re the apostles who go out and recruit the next new generation of top customers.”

Top of the List Unlocked members are predominantly women and in their Forties – the age is a sweet spot for Bloomingale's. These clients “buy every category of merchandise from us, including luxury fashion and home. She has an active youthful lifestyle and is in touch with what’s happening and what’s new,” Berman said.

Members in the top Loyallist tier can now earn 10 points per dollar, or 5% back, with a Bloomingdale’s credit card, or one point per dollar with any other payment method. This tier will also receive early access to products, get four triple point days per year, an unlimited return window, free local delivery and special offers and promotions.

Bloomingdale’s created a private Instagram account for Top of the List Unlocked members, launching later this month. “These customers will be able to preorder products from top brands before everyone else,” Berman said. “It’s all handled through our 59th street flagship. There will be exclusive Instagram content and access to the Best of Bloomingdale’s cobranded credit card with American Express AXP +0.2% AXP +0.2% AXP +0.2% with all purchases earning 5%.”

Bloomingdale’s Revamps Loyallist Program With New Perks For Top Customers

What: the move is part of the world’s biggest retail strategy shift

Why is it important: Walmart aims to close the e-commerce gap with Amazon and tap into China’s vast network of manufacturers

This month, Walmart began opening up its third-party marketplace to foreign sellers, who no longer need a US address or business tax identification. The vendors will still be carefully vetted, both locally and by Walmart’s global trust and safety team. The new sellers will make up just a fraction of Walmart’s total seller population, which is mainly based in the US.

Walmart is looking to expand its marketplace, where suppliers can offer their products via the company’s website, and the services that branch off of it, like fulfilment and advertising. For retailers, marketplaces are attractive because they provide revenue from fees without the cost of storing inventory. Last year, Walmart began offering fulfilment services for its marketplace sellers, a move that Amazon made 15 years ago.

For Chinese manufacturers, US marketplaces have become a popular way to reach American customers. Nearly 40% of all Amazon marketplace sales to US shoppers come from Chinese merchants, according to researcher Marketplace Pulse, which monitors the site.

“This will get Walmart more selection, more affordable goods that already dominate Amazon best-sellers lists,” said Juozas Kaziukenas, founder and CEO of Marketplace Pulse. “To an investor, that reads as positive news.”

Walmart doesn’t disclose how many marketplace sellers it has, but Marketplace Pulse pegs it at about 80 000. Walmart carries more than 80 million unique items online.

Walmart Opens Marketplace to Non-US Vendors in Strategy Shift

What: The luxury platform should deliver its first annual profit this year

Why it is important: Marketplace model and uplift from Covid-19 have proven to be key to enter Chinese market

Last November, Farfetch got USD 1.1 billion from competitors Alibaba and Richemont (owner of Net-a-Porter) in order to push the luxury ecommerce platform into Chinese market. In addition, further endorsement came from Kering’s billionaire founder, François-Henri Pinault, who invested EUR 50 million via his personal holding company.

The fact that Farfetch founder José Neves had managed to collaborate with rivals was further proof that the pandemic had brought a reckoning in an industry that had once been slow to move online.

After casting doubt on Farfetch’s ability to turn profitable, analysts now estimate that sales should have leapt 60% in 2020 to reach USD 1.65 billion. Moreover, Farfetch has promised that the uplift from Covid-19 will help it deliver its first annual profit (on an adjusted basis) this year.

When the pandemic hit, the nature of Farfetch’s business meant that it could still deliver even when one region was shut down, unlike Net-a-Porter, which was paralysed last spring when its UK warehouse shut down.

Furthermore, Neves’s choice of a business model is key to eventually deliver profit as it differs from other online retailers such as Net-a-Porter or Matches Fashion and it’s crucial: Farfetch would not buy any inventory. Instead, it acted as a marketplace.

In 2015, the company also diversified by creating another business to provide technology, software and services to help department stores such as Harrods to run their e-commerce operations.

How Farfetch prospered in a pandemic year

What: A USD 5.7 billion loss related to the sale of Asda group

Why it is important: Due to the retailer hyperactivity online and ability to upgrade its operations, the financial loss did not affect the share price

Following Walmart’s announcement of selling UK Retailer Asda last October, the end of the fiscal year allowed it to put a price tag on such a divorce: USD 5.7 billion, in non cash loss. Walmart announced that the earnings per share will be reduced by 20 cents in 2021. However, interestingly, this did not impact the value of the share on financial markets.

Walmart Reports $5.7 Billion Non-Cash Loss Related to Asda Sale 

What: digital demand was nearly 60% of owned business during the holiday season

Why it is important: CEO Marc Metrick gives perspectives for 2021

In his quarterly letter sent to vendors, Marc Metrick explains the following about Q4:

• More customers shifted their spending online and responded positively to Saks’ revamped online experience,
• The decision to delay designer sale break was successful in driving more full-price selling,
• Key markets such as Detroit, Atlanta, Boca Raton and Philadelphia were up double digits to 2019,
• Men’s, women’s accessories, kids and fragrances were the top-performing categories across all channels.

In 2021, Saks will:

• Introduce new personalization initiatives including the reveal of an “online preference centre” which will enable shoppers to find and save the newest arrivals of their favourite brands, offering a dedicated landing page with personalized products based on browsing behaviour,
• Amplify clienteling efforts through automation,
• Amplify the recently launched “customer council”, a cross-functional team focused on further improving the customer experience including executives from marketing, digital, finance, store operations, distribution and logistics,
• Redesign SaksFirst loyalty program, starting with the introduction of new rewards and benefits, such as early access to sales and in-home styling sessions,
• Continue with off-hours and virtual styling appointments and same-day delivery.

According to Marc Metrick, business is expected to ramp up over the course of 2021 despite uncertainty due to the pandemic.

Q4 at Saks Stores Down, Digital Up 

What: new giant shopping store in Seoul.

Why it is important: is it really a different concept providing more than shopping, or is it yet another large, albeit spectacular and updated department store?

Korean department store Hyundai is opening a new shopping mall next month on Yeouido in Seoul to test the concept for the future. The new building, called "The Hyundai Seoul," stands eight stories tall and extends another seven levels underground. The flagship store has a floor space of 89,100 sqm and it is the biggest department store in the capital area. It will compete directly with the International Finance Centre mall on the same street.

Hyundai Department Store said the new facility is different from others in that it offers not only shopping but also cultural spaces and areas for relaxation. It is decorated in futuristic and nature-friendly concepts including a 12-metre waterfall, an indoor botanical garden, and robots which give directions and can take visitors’ body temperature.

Hyundai Department Store to test future business model

What: Two key women executives, leaders in digital operations and merchandising, are leaving the company.

Why it is important: Neiman Marcus is entering next phase of its digital efforts.

Katie Mullen, chief digital officer since July 2020 will step down this summer. “Katie has set Neiman Marcus Group on a course for long-term success, and we are well-positioned to move to our next phase of digital capability building,” the company said in an emailed statement.

Melissa Lowenkron, a 24-year veteran who started at the company as an assistant buyer in children’s is leaving the company as senior vice president and general merchandise manager of handbags, ladies shoes, beauty and jewellery. “Her leadership, deep merchandising experience and passion for developing people throughout the organization had a significant impact on our business,” the company said.

Last week, Neiman Marcus said that it had hired Bob Kupbens to be executive vice president and chief product and technology officer to lead the next phase of its digital efforts. He started Monday and takes over from Mullen who is staying for a transition period.

A couple of key executive departures at Neiman Marcus 

What: a series of eco-friendly collections

Why it is important: sustainability has become an essential part in a business’ strategy, especially in retail. The fast-fashion group has been trying to upgrade its image these past years through various sustainable actions and commitments: recycling, organic materials, sustainable line (Conscious). Now the H&M brand is launching a series of eco-friendly collections called Innovation Stories

The brand concept will celebrate sustainability, modern design processes, and a circular fashion system. The first collection Science Story will launch in March and will introduce new materials in its production cycle, such as bio-based yarn derived from castor oil and Desserto, a plant-based alternative to leather produced from cactus plants. The collection will feature jeans, top and tracksuit among others. More collections will drop throughout the year. “Innovation Stories is a platform that pushes our experimentation to the next level. The initiative encourages our work with scientists and developers and puts a spotlight on our progressive ideas. Science Story is a homage to the years of research and experiments behind these incredible materials,” stated Ella Soccorsi, concept designer at H&M.

H&M's Innovation Stories concept drives it deeper into sustainability

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What: e-tailers using Shopify are now able to create ad campaigns for TikTok

Why is it important: French e-tailers using Shopify now have access to TikTok’s 100 million European users

The addition of the new “TikTok for Business” tool on their Shopify dashboard will allow online retailers to create and control ad campaigns, therefore to reach new customers and boost sales.

Comparing to 2019, Shopify France has seen a 61% growth in 2020. By the end of 2020, Shopify had more than 1.7 million merchants in 175 countries. TikTok and Shopify partnership has previously been launched in the USA, then in Italy, Spain, Germany and the UK.

Le partenariat entre TikTok et Shopify s’étend en France et dans d’autres pays européens

What: Due to Covid-19 restrictions, it is estimated that CNY-related domestic trips will fall from the usual 3 billion people to 1 bn.

Why it is important: Analysts do not see it as a major threat to sales: at worst, Q2 2021 will compensate for the losses incurred during this traditional high season.

New pikes in the virus in China, leading to local lockdown, will impact domestic travels related to CNY by an estimate of -2 billion travellers. This is expected to impact luxury brands which see China as their sole growth reservoir at this stage.

However, this is seen as a temporary and inconsequential blip by duty-free operators, as this will not hamper the long-term perspective of an otherwise more than the healthy market. On top of that, e-commerce and local forms of revenge-spending will probably help to compensate for the lost opportunities very soon in the course of 2021.

Chinese New Year Sales Hang in the Balance 

What: the retailer has no plan to sell its clothes online despite being hit hard by lockdowns

Why is it important: since the pandemic many retailers have enhanced their digital platforms and began to implement online strategies to survive during these difficult times. However, Primark decided to not go online because of the cost of managing the operations and processing high volumes of return, which would mean it could no longer offer low prices. Even customers have said they would like to have the opportunity to buy the clothes online.

If Primark doesn’t start to implement a strategy for today’s customer’s needs it could mean a risk of losing loyal clients since they're discovering new brands and ways to shop. Online players like Asos and Boohoo make it work because they are “geared up for it in terms of logistics” and reported soaring growth in sales this Christmas season, but since Primark value proposition as a fast-fashion retailer is low prices, the cost of going online would mean prices rise.

Primark refuses to go online despite £1bn lockdown loss 

What: Nordstrom celebrates Black History Month

Why is it important: how Nordstrom responds to activists’ push for back-owned brands

Last August and further to the Black Lives Matter movement, Nordstrom committed to:

• increasing Black and Latin representation among its managers by at least 50%,
• delivering USD 500 million in retail sales from brands owned by, operated by or designed by Black and/or Latinx individuals,
• increasing charitable donations to organizations that promote anti-racism to USD 1 million per year for the next five years.

Six months later and in honour of February's Black History Month, Nordstrom is preparing to celebrate Black-owned brands and amplify their voices through various merchandise categories in store and online.

Committed To Community: Nordstrom Celebrates Black History Month [...]

Activists Pushed Retailers to Back Black-Owned Brands. Here’s How Nordstrom Responded.

What: the acquisition of Topshop, Topman, Miss Selfridge & HIIT by British e-commerce giant Asos

Why it is important: following the collapse of UK retail group Arcadia in December 2020, and after many speculations on who would buy the bankrupt group out (Frasers Group, Authentic Brands Group), online player Asos eventually acquired four of the group’s strong fashion brands. With the move the online retailer is expanding its brand portfolio and its reach over UK’s retail landscape.

Nick Beighton, Asos CEO, commented: “The acquisition […] will help accelerate our multi-brand platform strategy [...]” The acquired brands were already sold on Asos.com and will join Asos Venture Brands portfolio alongside others (including Collusion, AsYou and Reclaimed Vintage), retaining their established brand and customer positioning. According to the press release, ASOS has acquired the intellectual property assets of Topshop, Topman, Miss Selfridge and HIIT; but does not mention the physical stores.

Acceleration of ASOS Brands strategy - Acquisition of Topshop, Topman, Miss Selfridge & HIIT

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