Something unusual and interesting happened in April: U.S. personal income grew at the fastest pace on record, while consumer spending fell at the fastest pace on record. The government's massive outlays led to a surge in personal income, but that money was mostly saved rather than spent and did not stimulate economic activity. Although wage income fell 8% from March to April, total personal income increased 10.5% due to a massive transfer of funds from the government to households in the form of one-off transfers and enhanced unemployment insurance. Why did people save so much? First, with much of the economy in lockdown, there were few spending opportunities. Second, people were averse to engaging in activities that required interaction with other people such as visiting restaurants and flying on airplanes. Third, many people lost jobs and were uncertain as to when jobs would return, so they hoarded cash. Finally, even people with jobs likely reduced spending in anticipation of possible trouble.

Read full statement below

full statement: A note on the global economy from Deloitte

After nearly three months of closure due to the Covid-19 crisis, Galeries Lafayette reopens its iconic flagship store on boulevard Haussmann in Paris. The retailer has taken essential measures to ensure safety of customers and staff: the number of customers is limited and visitor flow is organized using clearly sign-posted entrances and exits, masks are compulsory for both customers and employees, hand sanitizer is available at various points throughout the store, clear floor markings indicate social distancing requirements, plexiglass screens have been installed at the tills, items of clothing that have been tried on are removed for a few hours before theu are put back on display. For the time being, the store's restaurants  remain closed.

wwd article: Galeries Lafayette Reopens Boulevard Haussmann Flagship

press release: Galeries Lafayette Paris Haussmann will reopen its doors on Saturday May 30, 2020

video of Galeries Lafayette Haussmann reopening

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Unsurprisingly, recent sales data show that spending on home goods is higher than last year – more than 3,000 times higher in some cases.

So which items have made it to the top of our shopping lists?

full article by the financial times: What we buy during lockdown

Marks & Spencer has announced its latest annual results for the year to end March 2020. Revenue was down almost 2% while pre-tax profits were down over 21%. These results include end of March figures which are obviously affected by the virus pandemic.  According to management, they are still in a transformation process, although the trend towards digital has been accelerated. The figures also include the investment in Ocado online grocery business.

The food business saw an increase in revenue and like-for-like sales while the clothing and home business is being reengineered.

The international business continues to shift towards a franchise and joint venture model.

The press release gives a scenario for the year 2020-2021 by quarter in which clothing and home is expected to fall by 46%, food by 6%, and international by 22%, with the biggest hits in the current quarter.

Press release: Marks & Spencer annual results

The Four Seasons hotel in Manhattan has been providing free rooms for health professionals who were in town to help take care of coronavirus patients in the city. And Bloomingdale's made the stay all the more welcoming. "To celebrate National Nurses Day (13 May), we delivered 125 gift bags to the Four Seasons to hand out to their nurses in residence. They were filled with various beauty product — hand creams, moisturizer, facial masks; loungewear, candy, candles and a throw" said Kevin Harter, vice president of integrated marketing and fashion direction at Bloomingdale's.

More on department stores initiatives during the covid-19 crisis:

• Galeries Lafayette and BHV/Marais support Paris' hospitals
• M&S donates clothes to NHS
• Nordstrom is sewing face masks for health care workers
• Eataly Paris Marais supports hospital staff
• What are IADS members doing on Instagram?

Czech billionaire Daniel Kretinsky took a stake in Macy's Inc. and plans to engage management on ways to improve performance of the struggling U.S. retailer.

Kretinsky's Vesa Equity Investment amassed a 5% holding in Macy's for strategic investment purposes, according to a securities filing . The purchase makes him one of the company's top five shareholders, according to Bloomberg data.

The move is the latest variable for Macy's, which has been plagued by rising uncertainty since the coronavirus outbreak forced it to close its stores and furlough most of its workers. The chain, which had seen sales declines even before the pandemic, has been seeking additional sources of financing as the lockdown has caused revenue to dry up.

Macy's shares have slumped almost 70% this year.

Kretinsky, who tested positive for the coronavirus in March, has shown an interest in troubled retailers. He invested in France's Casino GuichardPerrachon SA last year after a $6.5 billion takeover offer for German wholesaler Metro AG was rebuffed.

While any crisis is a good opportunity for costs savings and optimizations, he said that a moderate approach should now prevail. "Those who will not react enough will lose all or a lot, but those who will overreact will lose as well, potentially a lot."

He also said in April that the public perception of the outbreak came from misleading math. "In my opinion, the numbers are persuasively showing that the coronavirus, despite being a real tragedy and extremely serious problem for mankind, is not an important life-or-death threat for the standard population with no important underlying health problems."

Full article below

Full article: New investor takes 5% of Macy's

More on department stores news:

• The rise of the follower and the agile department store
• Selfridges boss's warning: 'We're in for our hardest year ever'
• Debt and hubris: the demise of the US department store

Sephora, which is JCPenney's only make-up retailer, threatened to pull its cosmetics counters out of the department store in an attempt to end its longtime contract with the retailer in the midst of the coronavirus pandemic. Late April, JC Penney filed a temporary restraining order against Sephora in an attempt to prevent the makeup seller from leaving the department stores, which are in the process of being reopened. "JCPenney filed a temporary restraining order so Sephora could not prevent JCPenney from reopening Sephora inside JCPenney locations," Penney spokesperson Brooke Buchanan said. Sephora and Penney have had a joint enterprise operating agreement since 1 February 2009. "We have been in active discussions with JCPenney regarding our agreement for some time," Sephora said in a statement. "Although this is a sudden and unfortunate development, we are hopeful of continuing discussions and reaching an amicable agreement for both Sephora and JCPenney."

Related item:

• JC Penney considers debt-management options

Full article : Walmart sales surge with stockpiling

Related item:

• Walmart debuts fulfillment services for third-party vendors
• Walmart cuts hours and hires staff

British department store group Debenhams is set to cut hundreds of head office jobs, slimming down its administrative functions to support a smaller business going forward. Around 160 jobs have gone from the merchandising department and a similar number from buying. Other jobs in design and human resources have also been cut.

The retailer plans to open doors again to customers from June 15 with 90 stores initially, followed by another 30 over summer.

Last month Debenhams went into administration for the second time in a year, seeking to protect itself from legal action by creditors during the coronavirus crisis that could have pushed it into liquidation.

Related items:

• Debenhams to file for administration
• Five more Debenhams stores to close down

Restaurants in the Lithuanian capital Vilnius are reopening in style with mannequins filling seats left empty because of social distancing guidelines. Indeed, the country has eased the restrictions on bars, cafes and restaurants to allow them to operate indoor seating areas, although strict social distancing measures remain in place. Tables that otherwise must be kept empty will therefore be used for mannequins to demonstrate this season's fashions and promote local fashion designers. "Empty tables inside our restaurant look rather odd, and we don't have any way to remove them," explains Bernie Ter Braak, the owner of Cozy restaurant, who came up with the idea with a local well-known fashion designer, Julija Janus. "We decided to reach out to our neighbours, fashion boutique stores, and invited them to use our empty tables to showcase their newest collections. The news spread and well-known designers joined this project, which keeps gaining interest across the city," said Ter Braak. "Designers do not have many opportunities to showcase their latest collections, and in general, the consumption is down. We hope that this campaign will move the waters and local designers will gain some visibility," said fashion designer Janus. A few dozen restaurants and cafés located in the Old Town Glass Quarter of Vilnius are participating in the initiative. Over 60 originally dressed mannequins have been placed at the unused indoor tables, filling the space between dining guests, showcasing unique fashion pieces from 19 boutiques, featuring local fashion designers and brands.

As many unexpected developments in retail appear during the lockdown, luxury department store Harrods will open an outlet branch at London's Westfield White City. After a historic first-ever shutdown for the store in 170 years, the reopening of the flagship store (reportedly on 15 June) will be followed in early July by the debut of Harrods Outlet, which will be selling discounted Spring/Summer merchandise and housing summer sales, which will also be available online. Harrods MD Michael Ward stated: "Harrods Outlet allows us to enable better social distancing across a larger footprint, move towards the new season decisively and confidently, and retail in a responsible way."Indeed, designed for social distancing, the open-plan duplex space will feature three-meter-wide walkways. For now the outlet is temporary, but might be an option for the Christmas time also.

Meanwhile, the Knightsbridge flagship will largely focus on new, full-price. The store has taken measures to welcome customers in the best conditions, meaning the main flagship will be able to put strict social distancing measures in place and also create the best possible backdrop for new collections that will be arriving. Technology will be used to monitor footfall so that it can control numbers inside the store at any time. And it will also convert its doors into specific entrances and exits.

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• Harrods to offer VIPs remote personal shopping before reopening
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Karen Vernet (pictured here), E-Commerce Printemps.com development Director, is awarded the Margaret Intrapreneur Europe 2020 prize by the Digital Women's Day organization for the committed vision of Luxury Fashion-Creators resolutely inclusive, exclusive and caring of the new website. Created by "the Bureau" agency in 2013, the Digital Women's Day (JFD) has been honoring and connecting women who are working to revolutionize the world through digital technology. Read the press release below for all the winners:

Press release: les Margaret 2020

Related item:

• Printemps launches inclusive website

Singapore department store Robinsons will be closing its outlet at Jem in August 2020, where it first opened in 2013, the same year the mall was launched. According to a report, discussions between the department store and the mall's landlord Lendlease had been ongoing since November 2019. Following the departure of the Jem outlet, there will only be two Robinsons outlets in Singapore: The Heeren and Raffles City Shopping Centre.

A Robinsons spokesman said the company is working with staff to move them to other Robinsons outlets, to other brands under the Al-Futtaim Group which include Marks & Spencer and Zara, or to help them find other employment with Jem. The company also said that plans to revamp its e-commerce platform are in the works. To reach out to more customers online, Robinsons also recently launched its digital Robinsons Department Store on e-commerce marketplace LazMall last month.

Robinsons is not the first department store to experience a closure: in January, Japanese department store Isetan announced that it will be closing down its Singapore outlet at Westgate, which is just next to Jem.

IADS comments 20/05/2020

What should we expect from the post-virus future? Speculation is rife, forecasters are having a great time trying to convince us that we will soon be returning to a familiar pre-pandemic world, or, on the other hand, that we will be forced to adjust to a completely changed paradigm in a post-revolutionary world. We have identified three tendencies which will likely co-exist in the future, in combination with elements we

have not even dreamed of. A case of "known knowns; known unknowns; and unknown unknowns" the last of which, according to Donald Rumsfeld, tend to be the difficult ones.

Download full report below:

The new normal - A year without spring 5

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• A year without spring 4: The rise of the follower and the agile department store

Seattle-based Nordstrom is preparing to reopen some of its department stores, offering a glimpse at how shopping at the retailer will be different coming out of the coronavirus pandemic. "Our stores won't open all at once," President Pete Nordstrom and Chief Executive Erik Nordstrom said in a memo. "We're going to take a phased approach." Nordstrom laid out a number of changes in the wake of reopening stores. First, the retailer will be limiting the number of people that can come in its stores all at once, and store hours will be shortened to allow for additional cleaning. Nordstrom said it will be reopening its Ebar coffee shops. But its restaurants will resume operations on a case-by-case basis. Some employees will be positioned at store entrances to hand out masks to customers who need them. All Nordstrom workers will be provided with face coverings. It will also shut some of its dressing rooms and clean them between uses. Nordstrom added that any merchandise that is tried on, or returned, will be held "for a period of time" before it goes back to the rack or shelf. Around checkout areas, Nordstrom will be adding plexiglass dividers to protect cashiers from customers and said it will clean these areas after each shopper's transaction. It added that it is working toward making all transactions contactless, meaning it will only accept credit cards and not cash.

The coronavirus pandemic does allow Nordstrom to lean into one of its most popular services: Buy online, pick up in store. The company said it will be offering curbside pickup at more locations, and adding parking spaces for returns outside some stores.

On the same day, Nordstrom announces it will permanently close 16 full-line stores across the country, which represents about 14% of its fleet.

Read press release below for more details on the reopening

press release: Nordstrom Provides COVID-19 Business Update

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Anne Pitcher, Selfridges managing director, warns that the department store is 'in for our hardest year ever - boring shops won't survive'.

'Awful' is how she described the feeling when turning the lights out and pulling up the shutters on Oxford Street's most iconic store. 'the day we had to close was, for all of us, something we never thought we'd have to do – and something we haven't had to do since the war.' 'We will change the way we shop from this point on forever,' she says. 'We will shop more digitally, there will be fewer stores, I'm afraid. People in the short term will not want to visit public spaces as often or attend large events. It will be the most difficult year ahead of us that we've ever known.' The silver lining is that 'it's the years beyond that that are going to be the exciting times'. 'This is about reinventing retail, nothing less,' she adds. 'Stores will be different forever.'

full article: 'We're in for our hardest year ever - boring shops won't survive': Selfridges boss's warning

Related item:

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Nordstrom has permanently closed its three Jeffrey specialty stores located in Atlanta, New York City and Palo Alto. Nordstrom bought a majority stake in the Jeffrey luxury stores in 2005, hiring founder Jeffrey Kalinsky at the same time. Kalinsky joined Nordstrom as director of designer merchandising. He later served as executive vice president of designer merchandising and vice president, and subsequently designer fashion director.  Now Kalinsky will be retiring as Jeffrey closes. Closing Jeffrey as well as the 16 full-line stores (announcened on 5 May) is a response to COVID-19 and "ensuring we have the right footprint to best serve customers," Nordstrom said in a statement (read full statement below).

A Statement from Nordstrom: COVID-19 Store Update - 18.05.2020

Related item:

• Nordstrom's plan for stores reopening

Most high-end department stores are expecting foot traffic declines in the high-double digits when they reopen their doors, particularly in cities dependent on tourist shoppers. In Paris, Nicolas Houzé, the Galeries Lafayette chief executive, said that he does not expect to see a return to normal levels of business until the end of 2021, adding that it had lost "hundreds of millions" of euros worth of expected sales.

But the expectation is that those shoppers who do return in the coming months will be far more likely to buy. Simply put, retailers need to be selling more goods to fewer shoppers. And that means rolling out the red carpet.

Full article below

Full article: Will shopping ever be the same ?

More on department stores news:

• The rise of the follower and the agile department store
• Selfridges boss's warning: 'We're in for our hardest year ever'
• Debt and hubris: the demise of the US department store
• European fashion weeks go digital
• Harrods to offer VIPs remote personal shopping before reopening

US retailer chain Kohl's has reopened department stores in Arkansas, Oklahoma, South Carolina and Utah on 4 May, and it plans to reopen more stores in an additional 10 states on 11 May. In preparation for a safe reopening, the company has made significant enhancements to the store environment and operations to prioritize the health and safety of Kohl's customers and associates. The new measures include: limited store hours, social distancing measures, elevated cleaning procedures, and new returns process, among others. They also include wellness and temperature checks, safety training and the use of masks and gloves for our associates. Kohl's will continue to offer limited-contact drive up service at most stores for buy online, pick up in store and ship to store orders. Customers can simply drive up and park in designated parking spots at their local Kohl's and an associate will place their Kohls.com order directly in their trunk or backseat.

Press release below

Press release : Kohl's phased approach for store reopenings

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London's big name retailers are planning their eventual reopening and also making sure that they keep their top customers engaged before that happens. Harrods is reportedly planning to offer personal shopping for its top customers prior to opening its doors again with staff, taking orders by phone or smartphone message. A report said this "remote clienteling" should start on 18 May with the retailer saying it will be built on the "one-on-one relationships that our retail colleagues have with customers". The service is made possible by the fact that only a very small number of staff would be required to run it, which means that social distancing won't be a problem. Also it will allow the company to assess whether the service could be rolled out further. This could be crucial at a time when tourist shoppers are not expected to return right away.

Related item:

• John Lewis launches virtual experiences

A GDR Creative Intelligence Assembly Interview with Daniel Hulme, the AI expert and CEO and founder of optimisation specialists Satalia. Daniel talks to GDR Head of Strategy Eric Coulon about how Covid-19 will accelerate the move towards what he refers to as the "Ultra Gig" economy, why no one in retail understands AI and why he thinks the pandemic could have a positive impact on the world.

Link to podcast below:

PODCAST: GDR Assembly Interview: Daniel Hulme Of Satalia

The Mall stores in Thailand reopened last Sunday with an exemplary high-quality information campaign reinforcing trust among employees and customers.

See links to videos below.

THE MALL GROUP NEW NORMAL

THE MALL GROUP NEW NORMAL : CHECK IN-OUT REGISTRATION

 THE MALL GROUP NEW NORMAL : PHYSICAL DISTANCING, HYGIENIC CLEANING, COMPREHENSIVE INFORMATION

THE MALL GROUP NEW NORMAL : DEPARTMENT STORE POLICIES

THE MALL GROUP NEW NORMAL : TOUCHLESS RETAIL

More on department stores reopenings:

• The Mall prepares for reopening with a 'Happy Handbook'
• Harrods to offer VIPs remote personal shopping before reopening
• Canada's Holt Renfrew begins to reopen stores
• Interview: CEO Nicolas Houzé prepares the Galeries Lafayette for reopening
• Nordstrom's plan for stores reopening
• Selfridges reopens London food hall
• Thailand's Central department store introduces 5 principles for store reopening
• Breuninger's safety measures for store reopenings in Germany
• Kohl's phased approach for store reopening
• Le Bon Marché reopens in Paris – sanitary measures are taken

On 11 May, Le Bon Marché is reopening its Paris store, implementing measures specified by the health authorities for both customer's safety and that of employees. Openings hours have been adapted, and the number of people in the store will be regulated. Both staff and customers are required to wear masks. Other measures include physical plexiglass barriers at some of cash desks and information desks, and availability of hydroalcoholic gel. Read the note and watch the video (in French) below for more details.

Note: Le Bon Marché reopens Paris store (in english)

Video: Le bon marché se prépare à vous accueillir (in french)

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• Interview: CEO Nicolas Houzé prepares the Galeries Lafayette for reopening
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• Kohl's phased approach for store reopenings

John Lewis will begin to reopen its shops for customers as part of a gradual approach from Monday 15 June, starting with its Poole and Kingston department stores, followed by 11 others on Thursday 18 June. Depending on the response from customers and Partners to new ways of operating with respect to social distancing, more shops will open throughout the summer. The decision follows the Government's guidance earlier this week on easing restrictions for non-essential retailers.

Learning from the social distancing measures the Partnership has taken in Waitrose shops, John Lewis plans initially to open just under a quarter of its shops as part of a steady, gradual approach with rigorous safety and social distancing measures in place. Branches selected to open have been chosen primarily because of their accessibility by car.

As John Lewis takes the first steps in reopening its doors for business, a raft of measures will be introduced into its shops drawing from the Partnership's experience of applying and managing social distancing in its Waitrose supermarkets and from within the delivery and warehousing aspects of its e-commerce businesses. These include;

• The introduction of a "Customer Service Host" assigned to welcome customers into the store and answer any questions while managing customer numbers, queues both at entrances and busy areas of the shop and explain to customers what changes they might see in store.
• Reducing the number of shop entrances.
• Caps on the number of customers entering stores.
• Prominent social distancing signage.
• Protective screens at checkouts and areas of the shop where 2 metre social distancing cannot be achieved between customers and Partners.
• Control procedures for escalators and lifts limiting the number of users.
• Rigorous and frequent cleaning.
• Provision of hand sanitiser for customers to use at all entrances.
• Social distancing in back of house areas.
• New contactless payment limit of £45.
• Limiting the number of additional customer services - for example close-contact beauty services will not be offered and customer catering outlets and fitting rooms will remain closed until further notice.
• Safe and simple returns process - for example inline with government guidance we are going to separate returned stock from new or old stock for 72 hours.

Related items:

• Harrods to offer VIPs remote personal shopping before reopening
• Interview: CEO Nicolas Houzé prepares the Galeries Lafayette for reopening
• Nordstrom's plan for stores reopening
• Kohl's phased approach for store reopening
• Breuninger's safety measures for store reopenings in Germany
• Thailand's Central department store introduces 5 principles for store reopening
• Selfridges reopens London food hall
• The Mall prepares for reopening with a 'Happy Handbook'
• The Mall in Thailand reopens
• Belk prepares for reopening
• Dillard's starts reopening stores