On Running is a Swiss based company founded 2010 in Zürich by two friends who teamed up with professional athlete Olivier Bernhard. In 2019 they had 400 employees and generated a turnover of more than US $20m and claim to have grown +60% during the pandemic. Their appeal is based on a Swiss patented technology which equips its $195-278 pairs, sold in 4,000 stores over 50 countries.

They have announced on 15th of September the release of a new pair of shoes, made at 50% with bio-based material, which will not be available on sale but only on subscription, for $29.99 a month. The trick? You receive a new pair every 6 months and they take back the old ones.

Kohl’s is reportedly giving Amazon grocery store, probably its new banner called Fresh, a space in a its La Verne store, California. The proposed store would share building space with an existing Kohl’s; grocery being separated by a wall connecting to the existing Kohl’s next door. For a few years now, Kohl's has been reducing selling space and teaming up with grocery brands (ex. Aldi) or fitness club to increase traffic to Kohl's stores and to make smaller, more operationally efficient stores.

Through this project the department store extends its partnership with the ecommerce giant, as it is accepting Amazon Returns instore nationwide.

Kohl's to Help Amazon Grow Grocery Footprint

Alibaba’s Tmall Luxury launched three new features in a move to reach out to Chinese Gen Z customers. The goal is to “to educate, entertain and engage the new generation of luxury buyers”. The new features include:

• Soho Live: a daily livestreaming service focusing on luxury
• Soho Mag: a content-rich channel developed with fashion editors and trend-setting influencers
• an upgraded membership program offering personalized services to high-value customers

Tmall Luxury Connects High-End Brands with China’s “New Luxury” Gen Z Consumers

LVMH’s Louis Vuitton will present its next collection inside the not-yet-opened luxury department store La Samaritaine. Schedule on 6 October, it will be last physical show in Paris Fashion Week. Designer Nicholas Ghesquière will stage his show on the top floor of the complex, underneath a giant glass dome that casts light into a massive interior atrium. Due to social distancing restrictions, the designer will host two shows.

The luxury project La Samaritaine -which includes a department store, a luxury hotel, a hi-tech office space and even public housing- has been in the works for over 15 years and will open early next year (opening has been pushed back due to the pandemic).

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DFS Has a New CEO

Breuninger has opened a flagship store in Nuremberg. The 11000sqm space offers premium fashion and lifestyle brands, along with design and innovative labels. The store also features a bar, Eduard’s, and the Breuninger confiserie. The opening is celebrated all through the fall with special campaigns and events, and with brands collaborations.

Breuninger opens flagship store in Nuremberg

El Corte Inglés announced on Sept 28th the launch of Decor Studio, a new service of decoration and interior design to give personalized advice to their customers. As reported by the company, "this new service involves a continuous and personal support, from making decisions on the decorative concept, to the selection of furniture, lighting, textiles, finishes, accessories and even small details that complement the desired environment. To this end, the company put together a team of over 240 professionals composed of decorators, interior designers, landscapers, stylists, architects, and highly qualified technicians. Decor Studio is already available in 17 El Corte Inglés stores and will gradually expand to other centers until reaching 30 establishments by the end of the year.

El Corte Inglés lanza Decor Studio, un servicio de decoración integral y a medida de cada cliente

Retail specialist Walter Loeb looks at the recent developments of JC Penney. After rumours of liquidation earlier this month, JC Penney asked administration for a 120-days reorganization plan period. Sales Q2 2020 dropped by -44% to US $1.4b and Loeb is concerned that cash shortage might have led JC Penney into reducing fashion orders for the coming Christmas season –as JC Penney is reportedly known for being fashion savvy.

The JC Penney enigma continues

According to the Buenos Aires Times, Falabella of Chile will close 4 stores in Argentina. Falabella, which has ten stores of various formats in the country will close two Falabella department stores and two Sodimac outlets in Buenos Aires. The newspaper quotes the company as saying that it is “evaluating profitability options in its subsidiaries in Argentina, which could include the entry of a strategic partner”. A number of companies have apparently been considering an exit from Argentina as the covid pandemic further deepens the challenging business environment in the country which has been in recession since 2018.

Falabella to close stores in Argentina

Central Retail Corporation of Thailand has announced that it is to unite its Central and Robinson stores and “streamline its fashion segment”. According to management, the business synergy will make the combined department stores more customer-centric and strengthen the company's omni-channel competencies. The consolidation will create a store network which will form the basis of an omni-channel platform offering services, click & collect, 24/7 ordering and collection from any of the 74 Central and Robinson stores nationwide. However, the two names will remain and trade as Central and Robinson. 

CRC Announces Strategic Move, Combining the Strengths of Central and Robinson

CEO Ewan Venters has left luxury department store Fortnum & Mason to manage an art gallery, after 8 years at his position. His previous companies include Sainsbury’s & Selfridges.

Fortnum & Mason CEO Ewan Venters to step down

Thai-based Central Group, owner of Robinson, La Rinascente, Illum, Alsterhaus, Kadewe, Oberpollinger and Globus, is expanding its range of retail categories and format by acquiring Thai office supplies, entertainment and culture chains OfficeMAte, B2S and Meb E-books.

Thailand’s Central Group buys OfficeMate, B2S parent for US$390 million

Macy’s has announced that it will stage a pared down version of its almost one-hundred-year-old Thanksgiving parade this year because of the covid pandemic. This year’s event will be staged over two days, the overall number of participants will be reduced by 75% and all participants will observe social distancing. The traditional 2.5 mile route will not be part of this year’s event and the massive balloons will be tied to specially rigged anchor vehicles without the traditional 80-100 handlers.

According the the New York mayor, Macy’s "is reinventing the event for this moment in history. And you will be able to feel the spirit and the joy of that day on television, online — not a live parade, but something that will really give us that warmth and that great feeling we have on Thanksgiving Day."

Start-up incubator Lafayette Plug and Play has unveiled its 9th promotion. This new year will focus on five key retail innovation challenges:

• New Distribution Channels
• Smart Content at Scale
• Circularity and Ethical Commerce
• E-commerce Boosters
• Seamless Checkout

The incubator is also launching a third course dubbed “the International Early Track” that is fully digital. This new session will end on 3 December.

See on the press release below the 19 start-ups selected for the programme.

Lafayette Plug and Play first batch of start-ups amid the “new normal”

The John Lewis Partnership of the UK recently announced unaudited half-year results until 25 July 2020. The tone of the announcement was upbeat with a profit figure (loss) equivalent to last year, total trading sales up 1%, a healthy liquidity and a reduction in debt.

However, while Waitrose supermarket sales were up almost 10%, partly due to an impressive online growth to around £ 1 bn on an annualised basis, the results at the department stores were more difficult. Overall sales were down almost 10% in spite of online growth of 73%.

The group is currently undergoing major realignment with a new Board and Chairman.

See press release, presentation slides and audio recording below

press release

Presentation

audit

In a bid to dramatically reduce waste, the Berlin government has launched a state-run “department store” that both sells items that might otherwise get thrown away and acts as an education centre encouraging repair and re-use. Called B-Wa(h)renhaus (an apparently untranslatable pun meaning both department store and “conserving house”), the store covers over 700 sqm and sells used and upcycled clothing, furniture, phones and other electronics. In an attempt to reach beyond the usual people who already patronise second-hand shops, the store’s location is also significant: it’s not in an especially hip location, or a flea market known for knock-down prices, but within one of Berlin’s most established, middle-of-the-road department stores. It occupies the third floor of the Kreuzberg neighbourhood’s well-known Karstadt department store and has been planned to operate for a six-month pilot. The city says that it aims to open three or four re-use stores across Berlin in the near future. Its longer-term ambition, according to the city’s 2020-2030 waste master plan, is to launch a store in every one of Berlin’s 12 boroughs.

Seattle-based Nordstrom has launched a nationwide non-partisan voter participation initiative: Make Your Voice Heard. It aims to educate and make it easy for employees and customers to “make their voice heard”.  The initiative is organised in partnership with nonprofits When We All Vote and the National Urban League to help increase participation in upcoming elections, through virtual learning series, curbside voter registration and online resources related to the 2020 Census and voter registration, among others.

Saks Fifth Avenue has launched “Register to Vote at Saks” campaign at its NYC flagship store and online, in partnership with nonpartisan organizations HeadCount and Vote.org. Window displays call upon the community to take action and vote, and special booths inside the store will allow for customers to register to vote, complete absentee ballot applications and check their registration status.

Both Nordstrom and Saks are making election day (3 November) a paid holiday for employees and will arrange schedules of employees from stores and operations centers -which remain open- to make sure everyone can vote.

Other retailers, such as Walmart, Pantagonia or Levi’s, are making arrangements to ensure their employees get to the polls.

Saks Fifth Avenue Launches “Register to Vote at Saks”

Nordstrom Unveils Make Your Voice Heard - A Commitment to Voter Education and Participation

In parallel, Saks CEO Mark Metrick mentioned being ‘cautiously optimistic’ for fall, citing the relaunch of ww.saks.com and advanced clienteling effort. The last set of known figures for SFA is from Q3 2019, which showed a -1.7% sales decrease year on year.

WWD: Saks Fifth Avenue’s CEO On What’s Ahead

Walmart is simplifying its digital structure, focalising its approach to markets and divesting from former acquisitions, by letting go the Shoes.com footwear website as well as Bare Necessities lingerie brand. The reason: focus 100% of its efforts on its own Walmart e-commerce activity.

Walmart sells two more e-commerce brands in a digital reshuffle

Saks Fifth Avenue CEO Mark Metrick is dismissing the concept of retail apocalypse: as retail is not done yet. However he reckons that department stores lost themselves along the way, from their beginning a hundred year ago when going to them was a day event for the customer. By being captive to the fashion cycle, department stores lost track with their customers: they were offering them collection as an inopportune moment, and the cost related to operations prevented investing into the experience itself. But Metrick reminds that department stores stand for fun, escapism, fashion and service, providing an experience well beyond transaction. The solutions he proposes are multiple: investing in supply chain innovation – to deliver products when needed -, in frictionless omnichannel experience – including a personalized customer experience-, and an outstanding experience.

Saks CEO: Department stores are struggling. Here's how to fix them

London department store Selfridges is hosting an Oxfam pop-up for secondhand items. Oxfam is a confederation of independent charitable organizations that fights again global poverty. The shop at Selfridges features a mix of seconhand accessories and clothing, ranging from GBP 3 to GPB 450. The pop-up is part of Oxfam’s second annual secondhand September campaign.

Oxfam Opens Pop-up at Selfridges, Styled by Bay Garnett

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In a bid to convince luxury brands of its credibility, and following Alibaba’s suit, Amazon just launched its Luxury Store, an on-invitation only, reserved to US prime members, app-in-the-app. Oscar de la Renta is the first brand available on the marketplace.

Full article below

Amazon Launches Luxury Store on App With Just One Brand So Far

Department stores in Korea are adapting to younger demand, by integrating new brands at Hyundai, or giving fashion more space by moving cosmetics upwards at Lotte.

South Korean department stores refurbished to attract cashed-up MZ shoppers

Macy’s is expecting sales to be down over the rest of the year as it continues to face “deep declines” in footfall in large US cities. Clothing was among several departments that performed weakly in August, and Macy’s said the back-to-school season had been “slow”. However, the company said luxury products, from diamonds to upmarket handbags, were selling better than mass-market items.

Full article below

Macy’s points to uneven recovery from lockdown

Starting 1st of October, GKK will gather around CEO Miguel Müllenbach and CFO Guido Mager a new team, composed of Mr. Engelbert Thulfaut, formerly from Peek & Cloppenburg, in charge of Brands and Branches management, Mr. Dirk Lessing as COO (formerly member of the board of Takkt AG), Mr. Andreas Hink as the head of  digital (formerly at Globus) and Ms. Karin Busnel-Knappertsbusch as head of category management (formerly at Manor).

GKK stärkt Chefetage mit hochkarätigem Management-Quartett

John Lewis has opened its Christmas shop in the Oxford Street location this week, and is rolling over in the rest of the stores from 25th of September until the 5th of October. More than opening date (earlier than before), or the number of Christmas trees showcased in the "Christmas Forest", the most interesting innovation is a 360° visit of the floor with the possibility to buy a selection of products. The visit is accessible here. Acknowledging that Christmas might feel different to UK customers this year, the retailer decided to transfer the experience online in the hope to boost sales of gifts and Christmas decoration.

It feels at the same time odd and comforting to navigate in an empty store with a google street-like way of hovering in the various aisles. The department store is reproduced at the finest detail possible, and allows to immerge oneself into the visit. The limited and guided choices of what is available for purchase feels however somehow frustrating, as well as the fact that a click on said products gets you out of the page to land on a standard e-commerce feature.

John Lewis & Partners launches Christmas Shop including first ever virtual shop tour