What: Ripley’s 2025 results show a 120% profit jump, led by growth in Peru, retail, banking, and real estate, and supported by strategic investments in digital and physical expansion.

Why it is important: Ripley’s results highlight the effectiveness of a diversified business model and the strategic value of the Peruvian market.

Ripley Corp delivered a remarkable 120% increase in profits for 2025, reaching US$136.8 million, driven by robust performance across its core business lines—retail, banking, and real estate. The Peruvian market played a pivotal role, with retail revenues surging due to increased liquidity and strong apparel sales, while the banking segment saw healthy loan portfolio growth and contained delinquency rates. Real estate revenues soared by 21.5%, buoyed by high occupancy and tenant sales in shopping centres, particularly in Peru. Despite rising costs and administrative expenses, the company’s operational improvements and digital transformation initiatives supported sustained growth. Ripley’s fourth-quarter results further underscored this momentum, with net income and EBITDA both posting double-digit gains. Looking ahead, Ripley plans to invest US$56 million in 2026, focusing on omnichannel expansion, technology, logistics, and shopping centre development, especially in Peru. This balanced approach aims to reinforce its market position and adapt to evolving consumer and market dynamics.

IADS Notes: Ripley’s record-breaking performance in 2025, marked by a 120% profit surge and robust results in Peru, is a direct outcome of its strategic focus on diversified growth and operational efficiency. This trajectory was foreshadowed by the company’s $38.5 billion investment plan announced in June 2025 by Perú Retail, which prioritised both physical expansion in Peru and the strengthening of digital and logistics capabilities. The company’s multi-segment approach, spanning retail, banking, and real estate, has proven highly effective, as evidenced by the doubling of net profits and strong sales growth reported by Modaes in December 2025. Notably, the Peruvian market has consistently outpaced Chile in retail performance, with Mall Aventura’s high occupancy rates and tenant sales growth further reinforcing Ripley’s integrated retail-real estate strategy, as highlighted by Modaes in May 2025. This approach mirrors broader regional trends, where leading players like Mallplaza are also investing heavily in omnichannel infrastructure and shopping centre expansion, as reported by Perú Retail in March 2025, underscoring the competitive imperative for continuous innovation and market adaptation.

Ripley achieved record profits in 2025

What: Gillian Anderson joins M&S in a new role focused on affirmation and customer connection, following the success of the retailer’s viral social media campaign.

Why it is important: This move demonstrates how innovative influencer partnerships and emotional branding can drive engagement and differentiate retail brands.

M&S has taken a creative approach to brand engagement by appointing Gillian Anderson as its first “chief compliments officer,” a role designed to champion affirmation, positivity, and customer connection across its Fashion, Home, and Beauty divisions. This initiative builds on the momentum of the retailer’s “Love That!” campaign, which originated as a social media series and quickly gained viral traction, amassing 20 million views. By leveraging Anderson’s influence and the emotional resonance of compliments, M&S is reinforcing its brand values and encouraging customers to embrace joyful, everyday moments. The campaign’s digital-first strategy, including expansion into platforms like TikTok Shop, reflects the growing importance of social media and influencer partnerships in shaping retail marketing. Unified messaging across categories ensures a consistent brand experience, while research-led insights into consumer happiness and affirmation underpin the campaign’s relevance. Through this innovative approach, M&S is setting a new standard for emotional branding and customer engagement in the retail sector.

IADS Notes: M&S’s strategy is supported by recent developments reported in Drapers (November 2025, “M&S launches on TikTok Shop”; September 2025, “Marks & Spencer CEO Stuart Machin reveals his masterplan”; November 2025, “M&S steps up store plan with 500 new sites”), Retail Week (September 2025, “Marks & Spencer makes transformation hire at fashion division”), and Fashion Network (November 2025, “Hugo Boss joins Brands at M&S, retailer partners with Circulose on sustainability”). These sources highlight the retailer’s focus on digital engagement, influencer partnerships, and unified cross-category messaging as key drivers of brand differentiation and customer loyalty.

M&S signs Gillian Anderson as "chief compliments officer" 

What: Gap Inc. is experiencing a turnaround under CEO Richard Dickson, with renewed brand storytelling, refreshed marketing, and operational improvements driving eight consecutive quarters of same-store sales growth.

Why it is important: Gap’s progress highlights the power of brand storytelling, operational discipline, and cultural relevance in reviving legacy retailers, as seen in recent industry analyses.

Gap Inc. is staging a notable recovery under the leadership of Richard Dickson, who has revitalized the company’s image and operations by returning to its roots in brand storytelling and cultural resonance. Through high-impact marketing campaigns, such as collaborations with Gen Z icons and music-driven ads, Gap has successfully re-engaged younger consumers and reignited interest in its core product lines. Operationally, the company has streamlined its store portfolio, invested in refurbishments, and leveraged AI and automation to enhance inventory management and delivery speed. The shift away from heavy discounting toward more appealing, trend-driven assortments has resulted in higher average selling prices and improved store traffic. While challenges remain—particularly for brands like Athleta and Old Navy—Gap’s renewed focus on product excellence, faster production cycles, and experiential marketing is yielding tangible results, with eight consecutive quarters of same-store sales growth and a share price rebound of over 125% since Dickson’s arrival.

IADS Notes: Gap’s ongoing turnaround under CEO Richard Dickson is emblematic of the broader challenges and opportunities facing legacy retailers in today’s market. As detailed in The Robin Report (December 2025/January 2026), Gap’s strategy of ambitious category expansion and high-profile executive hires is unfolding amid persistent issues in product quality, pricing discipline, and customer experience. The brand’s renewed focus on operational discipline and product fundamentals mirrors industry lessons from Dillard’s and Macy’s, where success has hinged on curated assortments, disciplined management, and targeted investment. BoF (January 2026) highlights Gap’s bold move into “Fashiontainment” with the appointment of a chief entertainment officer, reflecting a wider trend toward experiential and cultural engagement in retail. The Economist (September 2025) underscores the volatility of fashion retail, as seen in Lululemon’s struggles with shifting trends and supply chain challenges—paralleling the need for agility and innovation at Gap. Vogue Business (August 2025) and BoF (December 2025/January 2026) further illustrate the complexities of modernizing legacy brands, emphasizing the importance of brand identity, curated offerings, and customer relationships over discount-driven strategies. Collectively, these sources reinforce that sustainable growth for Gap and its peers depends on restoring brand equity, investing in product excellence, and delivering a coherent, trusted customer experience.

How Gap is trying to get its cool back

What: OpenAI’s withdrawal from its checkout initiative signals major challenges for AI-driven commerce strategies in retail.

Why it is important: The move underscores the risks for retailers relying on external tech providers for critical commerce functions, reinforcing the need for resilience and adaptability.

OpenAI’s decision to step back from its checkout initiative marks a significant moment for the intersection of artificial intelligence and retail commerce. The retreat highlights the complex operational, technological, and trust-related hurdles that even leading AI firms encounter when attempting to revolutionise retail transactions. Retailers have increasingly looked to AI-driven solutions to streamline checkout processes and enhance customer experience, but OpenAI’s withdrawal raises questions about the reliability and scalability of such technologies. This development comes at a time when the sector is already grappling with rapid digital transformation and heightened consumer expectations for seamless, efficient service. The incident serves as a cautionary tale for retailers considering deep integration with external technology providers, emphasising the importance of building resilient, adaptable systems that can withstand shifts in the tech landscape. Ultimately, OpenAI’s move illustrates the ongoing tension between innovation and operational reality, reminding the industry that successful digital transformation requires more than just advanced technology.

IADS Notes:OpenAI’s retreat mirrors recent industry setbacks, such as Amazon’s withdrawal from its Just Walk Out technology in October 2025, which exposed the operational and trust challenges of scaling AI-driven checkout systems. The Financial Times in November 2025 noted the risks retailers face as power shifts to AI platforms, while Journal du Net in January 2026 warned that those failing to adapt to AI-driven commerce risk irrelevance. Fortune in February 2026 emphasized that technology and logistics alone cannot replace operational excellence and customer experience, and Inside Retail in September 2025 highlighted the vulnerabilities retailers face when key technology providers exit, reinforcing the need for resilience and agile management.

Why OpenAI’s checkout retreat spells trouble for its commerce strategy

What: Chinese tourist spending is shifting from Japan to Korea, driving a surge in Korean department store revenues.

Why it is important: This shift highlights the impact of diplomatic relations on regional retail and the ability of Korean retailers to capture international demand.

Chinese tourists are increasingly choosing Korea over Japan as their preferred shopping destination, resulting in a notable surge in revenues for Korean department stores. This trend is largely attributed to diplomatic tensions and changing travel patterns, which have redirected Chinese consumer flows away from Japan. Korean retailers have responded swiftly, implementing targeted promotions and experiential offerings that appeal to international shoppers, particularly during peak travel periods. As a result, department stores such as Lotte and Shinsegae have reported significant sales growth, with some periods seeing foreign sales rise by as much as 40%. Meanwhile, Japanese department stores have experienced a sharp decline in tax-free sales and foot traffic, exacerbated by a Chinese tourist boycott. This evolving landscape underscores the importance of diplomatic relations in shaping retail tourism and highlights the strategic agility of Korean retailers in capturing new demand. The shift not only benefits Korea’s luxury and premium retail segments but also signals a broader transformation in Northeast Asia’s competitive retail environment.

IADS Notes: In March 2026, ChosunBiz reported a surge in Chinese tourist spending at Korean department stores, highlighting a significant shift from Japan to Korea due to diplomatic tensions. This trend was further evidenced in October 2025, when ChosunBiz documented a 40% increase in foreign sales at Lotte Department Store during the golden holidays, driven by targeted promotions for Chinese tourists. Inside Retail, in September 2025, described how Korean retailers were innovating with new experiential offerings to attract Chinese visitors ahead of visa-free entry, reflecting the competitive dynamics with Japanese retailers. Meanwhile, Sora News noted in June–September 2025 a sharp decline in tax-free sales and foreign tourist numbers at Japanese department stores, underscoring the impact of shifting Chinese tourist flows. The Financial Times, in March 2026, explored the significant losses faced by Japanese department stores due to a Chinese tourist boycott, emphasizing the influence of diplomatic relations and the need for diversification in retail strategies.

Chinese shoppers shift to Korea as department stores ride spending surge

What: Kohl’s is pursuing a business reset under new leadership, aiming for a promising start to 2026 despite forecasting annual sales below estimates.

Why it is important: The company’s strategy highlights the growing importance of leadership-driven transformation for department stores seeking to remain relevant in a rapidly evolving retail landscape.

Kohl’s is embarking on a significant reset under its new CEO, signalling a strategic shift as the company aims to revitalise its performance and reposition itself for future growth. Despite projecting annual sales below market estimates, the leadership is focused on operational improvements and adapting to changing consumer expectations. This approach reflects a broader trend in the department store sector, where companies are increasingly relying on leadership-driven transformation to navigate a challenging retail environment. The reset includes efforts to modernise store formats, enhance customer experiences, and respond to evolving shopping behaviours, particularly as digital convenience and experiential retail become more important to consumers. By prioritising innovation and operational agility, Kohl’s is positioning itself to compete more effectively, even as the sector faces ongoing pressures from both traditional competitors and new market entrants. The company’s actions underscore the critical role of decisive leadership in steering legacy retailers through periods of uncertainty and change.

IADS Notes: Kohl’s reset under new leadership reflects the broader transformation in the department store sector, as highlighted by Maeil Business Newspaper in March 2026, which reported that sales are increasingly concentrated in top-performing, often luxury-focused locations, pushing mid-sized stores to innovate through experiential retail and operational changes. Fashion Network in January 2026 noted that major department stores are shifting toward new operational models and curated experiences in response to financial pressures and evolving consumer preferences. Belk’s investment in smaller, flexible formats, as detailed by Patch in December 2025, and John Lewis’s focus on operational excellence and service, discussed by Retail Week in August 2025, exemplify these adaptive strategies. Additionally, Retail Wire in October 2025 emphasised the growing influence of Gen Z, whose demand for digital convenience and engaging experiences is accelerating the need for leadership-driven change to maintain relevance and competitiveness.

Department store Kohl's points to promising start to 2026 as CEO attempts reset

What: Strategic leadership is shaping retail’s response to the Iranian conflict’s disruption of supply chains, consumer confidence, and regional operations.

Why it is important: The response to the Iranian conflict underscores the importance of scenario planning and resilience, building on trends identified in the past year.

The Iranian conflict has become a defining test for retail leaders, compelling them to demonstrate strategic foresight and resilience in the face of unprecedented disruption. As supply chains are thrown into disarray and inventory backlogs mount, particularly in fast fashion and global brands with significant Middle Eastern exposure, executives are forced to rethink sourcing strategies and logistics frameworks. The closure of stores and the decline in airport retail activity have further eroded consumer confidence, amplifying the operational and reputational risks faced by the sector. In this volatile environment, effective leadership is characterised by transparent communication, agile decision-making, and robust scenario planning. Retailers are increasingly prioritising risk management and stakeholder trust, recognising that the ability to adapt swiftly to geopolitical shocks is now a core competency. This period of instability is not only reshaping operational models but also redefining the expectations placed on retail executives, who must now balance immediate crisis response with long-term strategic vision.

IADS Notes: In March 2026, Inside Retail reported on how the Iranian conflict disrupted global retail supply chains, forcing rapid adaptation in sourcing and logistics. That same month, Inside Retail highlighted the accumulation of fast fashion inventory in South Asia due to grounded flights, while Reuters documented the closure of global brand stores in the Middle East as conflict escalated. Retail Week, also in March 2026, analysed the decline in airport retail and consumer confidence amid the crisis. Additionally, Inside Retail’s January 2026 coverage emphasised the importance of strategic leadership and coordinated executive action during times of crisis. Collectively, these sources illustrate how recent geopolitical instability has driven the retail sector to prioritise scenario planning, risk management, and agile leadership.

How retailers can navigate Iran war’s supply chain disruption

What: The transformation of Hong Kong into Beijing’s financial vanguard is altering capital flows, retail pricing, and cross-border luxury retail approaches.

Why it is important: The development underscores the need for retailers to adapt to new financial realities and changing consumer behaviours in Hong Kong’s evolving market.

Hong Kong’s emergence as Beijing’s financial vanguard is fundamentally altering the city’s retail landscape, with significant implications for investment, pricing, and luxury retail strategies. As the city’s financial sovereignty becomes more closely aligned with Beijing, the strength of the Hong Kong dollar and evolving regulatory frameworks are reshaping capital flows and influencing the cost structures faced by retailers. This has led to a noticeable shift in consumer behaviour, with value-conscious tourists and locals increasingly seeking experiences over traditional shopping, and a growing trend of outbound shopping due to currency advantages across the border. Luxury brands are responding by investing in integrated retail destinations that blend shopping with lifestyle and entertainment, aiming to capture both local and cross-border demand. The city’s continued role as a financial hub ensures ongoing international investment, but sustainable growth now depends on retailers’ ability to innovate and align with rapidly changing consumer expectations and financial conditions.

IADS Notes: As reported by The Economist in January 2026, rising visitor numbers in Hong Kong have not led to increased retail spending, with the strong Hong Kong dollar prompting locals to shop across the border and tourists to prioritise experiences over shopping. Inside Retail in September 2025 highlighted similar trends, noting that despite modest retail growth, the robust currency continued to deter tourist spending and encourage outbound shopping. The luxury sector has responded by investing in integrated, experience-driven destinations, exemplified by record sales at K11 Musea during Golden Week in February 2026 (Inside Retail) and new luxury brand investments in Lifestyle’s Kai Tak mall as covered by Hong Kong Business in March 2025. These developments collectively demonstrate how shifts in financial policy and consumer behaviour are redefining Hong Kong’s retail sector.

Hong Kong is Beijing’s new ‘vanguard’ in the contest for financial sovereignty

What: Ikea is launching a smaller-format store in Dallas, offering over 3,000 items for immediate purchase and integrating online order pickup to increase accessibility in urban markets.

Why it is important: This marks Ikea’s first small-format store in the US, signaling a major strategic shift to reach urban consumers and test new retail models in a key growth market.

Ikea’s new Dallas store represents a significant evolution in the brand’s US strategy, as it debuts its first small-format location designed to serve densely populated urban areas. With over 3,000 products available for immediate purchase and more than 5,000 items on display, the store blends the convenience of curated in-store shopping with the flexibility of online order pickup. This approach allows Ikea to maintain its signature experience—including decorated room displays and a food court—while adapting to the space constraints and fast-paced lifestyles of city dwellers. The Dallas opening is part of a broader investment in Texas, reflecting the region’s population growth and economic vitality. By pioneering this compact format in the US, Ikea is positioning itself to capture new urban customers, enhance accessibility, and set a precedent for future expansion in other metropolitan markets.

IADS Notes: Ikea’s expansion into smaller, urban store formats in the US and globally reflects a broader retail shift toward accessibility, flexibility, and omnichannel integration. Retail Brew (March 2026) highlights Ikea’s plan to open 10 new US stores—including small-format locations—demonstrating adaptability to evolving consumer preferences and urban market demands. The Financial Times (May 2025) details Ikea’s £378 million investment in London’s Oxford Street, combining immediate purchase options with home delivery to meet city dwellers’ needs for proximity and convenience. Fashion Network (January 2026) reports on Ikea’s closure of seven stores in China and renewed focus on urban formats and digital channels, underscoring the necessity for international retailers to remain agile amid shifting consumer sentiment. Chainstore Age CSA (November 2025) describes Ikea’s partnership with Best Buy to launch shop-in-shop concepts, leveraging cross-category collaboration and omnichannel convenience. Fashion Network (February 2026) notes Ikea’s move to host Decathlon in its Croydon store, signaling a willingness to experiment with collaborative, multi-brand environments and further invest in smaller urban stores and digital services. Collectively, these developments illustrate how Ikea is redefining its retail strategy to balance brand identity, experiential retail, and localized, customer-centric offerings in a rapidly changing landscape.

Ikea debuts in Dallas with a new, smaller store concept

What: Government delays are stalling tariff refunds for retailers, impacting cash flow and operational planning.

Why it is important: These delays exacerbate existing financial and operational pressures on retailers, reinforcing the need for strategic resilience in a volatile trade environment.

Retailers are facing mounting challenges as government delays in processing tariff refunds disrupt cash flow and complicate operational planning. The uncertainty surrounding these refunds is intensifying financial strain, particularly for major players who are already grappling with increased costs and shrinking margins due to ongoing tariff impacts. Many retailers have been forced to raise prices, restructure supply chains, and reconsider hiring and investment decisions as a result of these delays. The situation is further complicated by the need for strategic flexibility, with some companies exploring mergers, acquisitions, and enhanced private label offerings to maintain competitiveness. As consumers become more price-sensitive, retailers are under pressure to deliver value while navigating unpredictable government actions and global trade dynamics. This environment demands heightened resilience and adaptability, as the industry seeks to safeguard profitability and ensure long-term stability amid persistent policy uncertainty.

IADS Notes: On 1 August 2025, Internet Retailing reported that seven in ten UK retailers had already suffered profit losses due to tariffs, with major brands like Adidas warning of significant cost increases. Forbes, on 3 October 2025, detailed how escalating tariffs and government policy delays were driving up costs, reducing margins, and forcing retailers to overhaul supply chains and limit hiring. The complexity of tariff management and the need for strategic flexibility were explored by Forbes on 20 March 2025, while Inside Retail on 8 April 2025 examined how retailers were enhancing value propositions and private label offerings in response to changing consumer behaviour. The Robin Report, on 15 September 2025, emphasised the importance of contingency planning and operational agility as economic uncertainty and tariff-driven cost increases contracted discretionary spending across the sector.

Tariff refunds for retailers are stalled by government delays

What: Europe’s retail sector is struggling to cope with a new surge in energy prices, revealing widespread vulnerability and lack of preparedness.

Why it is important: The sector’s response to energy market instability reinforces the importance of adaptive supply chain strategies identified over the past year.

Europe’s retail sector is facing renewed pressure as energy prices surge, exposing significant vulnerabilities in operational resilience and cost management. Many retailers, already weakened by previous economic shocks, are finding themselves ill-prepared to absorb the latest increases in energy costs, which are eroding margins and forcing difficult decisions on pricing and investment. The resulting squeeze on profitability is compounded by shifting consumer behaviour, as shoppers become more cautious and prioritise value amid ongoing uncertainty. Retail executives are now compelled to revisit their risk management frameworks, seeking more adaptive and segmented supply chain strategies to buffer against future shocks. This environment demands not only immediate contingency planning but also a fundamental reassessment of long-term operational models. The sector’s struggle to respond effectively to energy market volatility underscores the need for greater agility, robust scenario planning, and a proactive approach to resilience, as retailers strive to safeguard both profitability and consumer trust in an increasingly unpredictable landscape.

IADS Notes: In March 2026, Reuters reported on the European retail sector’s lack of preparedness for a new energy price shock, highlighting widespread operational vulnerabilities. The Robin Report’s September 2025 analysis emphasised the growing importance of contingency planning and resilience strategies in response to rising costs and policy shifts. BCG’s June 2025 report detailed the impact of economic uncertainty on consumer confidence and spending, while Bain & Company in May 2025 discussed the move toward more adaptive supply chain models. Inside Retail’s September 2025 coverage further underscored the operational risks associated with third-party dependencies, collectively illustrating the sector’s urgent need for adaptive strategies in the face of ongoing energy market instability.

Europe's struggling retail sector looks ill-prepared for new energy price shock

What: The Iran conflict is forcing retailers to adapt rapidly as supply chain breakdowns, store closures, and economic instability reshape the industry.

Why it is important: This development illustrates how geopolitical conflict can rapidly destabilise retail operations, echoing recent findings on supply chain and leadership resilience.

The ongoing conflict involving the U.S., Israel, and Iran has created a volatile environment that is profoundly affecting the retail sector. Retailers are contending with severe disruptions to global supply chains, leading to inventory backlogs and logistical challenges, particularly in fast fashion and other time-sensitive categories. Store closures in the Middle East have highlighted the vulnerability of retail operations to geopolitical instability, forcing companies to reassess their risk management and crisis response strategies. Economic uncertainty, inflation, and currency fluctuations are further complicating pricing and profitability, compelling retailers to adopt more robust contingency planning and scenario analysis. At the same time, shifts in consumer behaviour—driven by anxiety, reduced discretionary spending, and changing priorities—are prompting brands to rethink their engagement and merchandising approaches. Leadership teams are under pressure to communicate transparently, act decisively, and foster resilience throughout their organisations. The cumulative effect of these challenges is a retail landscape that demands agility, innovation, and a renewed focus on operational continuity and stakeholder trust.

IADS Notes: In March 2026, Inside Retail reported that the Iran conflict triggered significant supply chain breakdowns and inventory backlogs, especially in fast fashion, compelling retailers to overhaul sourcing and logistics strategies. That same month, Reuters detailed the closure of global brand stores across the Middle East, highlighting the acute vulnerability of retail operations to geopolitical instability and the urgent need for robust crisis management. Also in March 2026, Inside Retail described how grounded flights in South Asia left fast fashion inventory stranded, exposing the fragility of just-in-time logistics models. The Robin Report’s September 2025 analysis emphasised that scenario planning and supply chain restructuring are now essential for resilience in the face of tariffs and inflation. Finally, the Harvard Business Review in January 2026 underscored the necessity of agile, transparent, and inclusive leadership teams for navigating uncertainty, maintaining stakeholder trust, and ensuring business continuity in this volatile era.

Retailing during wartime

What: Kohl’s revises its annual sales outlook downward, citing ongoing market pressures and challenges in retaining customers.

Why it is important: This downward revision reflects the persistent challenges facing department stores, reinforcing recent findings on the need for strategic adaptation in a highly competitive retail environment.

Kohl’s has lowered its annual sales forecast, attributing the decline to intensifying competition and difficulties in maintaining customer loyalty. The company’s efforts to counteract these pressures include launching new value-driven initiatives and strengthening partnerships, such as the Deal Bar and Sephora collaborations. Despite some operational improvements and margin gains, these strategies have not fully compensated for the broader market challenges, including shifting consumer preferences and leadership instability. The ongoing struggle to balance cost controls, brand partnerships, and evolving customer expectations highlights the precarious position of traditional department stores. Kohl’s experience exemplifies the broader industry trend, where even established players must continuously innovate and adapt to survive. The situation underscores the urgency for department stores to rethink their business models and embrace agility in response to a rapidly changing retail landscape.

IADS Notes: Kohl’s recent sales outlook revision aligns with developments observed in February 2026, when the company introduced the Deal Bar to attract value-conscious shoppers. Despite these efforts and margin improvements noted in August and May 2025, persistent sales declines and leadership instability remain significant hurdles. The company’s strategic partnerships and operational adjustments mirror broader survival strategies discussed in March 2026, emphasising the necessity for innovation and adaptability in the face of ongoing industry disruption.

Kohl's forecasts steeper-than-expected annual sales drop amid stiff competition

What: Singapore retail sales declined in January 2026 due to the late timing of Chinese New Year, affecting sector performance.

Why it is important: The sector-specific impacts of shifting holiday calendars underscore the importance of digital innovation and operational flexibility in Singapore’s retail market.

Singapore’s retail sector experienced a marked decline in sales for January 2026, a direct result of the late occurrence of Chinese New Year. This timing shift disrupted typical consumer spending patterns, with certain categories such as watches and jewellery showing relative resilience, while apparel and supermarkets were more adversely affected. The volatility in sales performance highlights the ongoing challenge for retailers to anticipate and adapt to calendar-driven fluctuations. In response, many operators have accelerated their adoption of digital tools and refined their inventory and promotional strategies to better align with shifting demand. The sector’s ability to pivot quickly is further supported by a focus on experience-driven retail and the integration of digital channels, which have become essential for maintaining engagement and driving sales during periods of uncertainty. These adaptive strategies not only mitigate the impact of unpredictable holiday timing but also position Singapore’s retail market as a leader in operational flexibility and innovation within the region.

IADS Notes: Singapore’s retail sector’s sensitivity to holiday timing was evident in March 2026 (Inside Retail), with a notable sales decline following the late Chinese New Year. Similar patterns were observed in April and March 2025 (Inside Retail), where sales performance varied sharply depending on the holiday’s timing. Sector-specific volatility and the need for digital integration and strategic adaptation were further highlighted in February 2026 and February 2026 (Inside Retail), reinforcing the importance of operational flexibility and experience-driven retail in navigating these challenges.

Singapore retail sales fall in January as Chinese New Year occurs late

What: OpenAI is shelving plans for native payments in ChatGPT, shifting to a model that redirects users to retailers’ platforms as agentic commerce matures.

Why it is important: These developments demonstrate that as agentic commerce matures, the balance of power is shifting toward platforms and standards, compelling retailers to optimize for AI-driven journeys.

OpenAI’s decision to abandon native payment integration in ChatGPT in favor of redirecting users to third-party retailer platforms marks a pivotal moment in the evolution of agentic commerce. While conversational AI has proven highly effective for product discovery and recommendation, consumer trust and established purchasing habits remain barriers to completing transactions within AI interfaces. This strategic pivot reflects the logistical complexities of real-time catalogue management and payment standardization across millions of SKUs, as well as the need for robust retailer infrastructure to support seamless conversion. The move also signals intensifying competition among tech giants, with Google and Meta advancing their own universal standards and transactional features to capture value in the emerging AI-powered commerce ecosystem. As agentic commerce enters a maturation phase, retailers must adapt by ensuring their product data is machine-readable, their platforms are agent-friendly, and their customer journeys are optimized for AI-driven discovery and conversion. The shift underscores that, while AI is reshaping the path to purchase, the final transaction—and the trust it requires—remains firmly anchored in retailer-controlled environments.

IADS Notes: The rise of agentic commerce is fundamentally transforming the retail landscape, as AI agents increasingly mediate and automate e-commerce transactions. Journal du Net (September 2025) highlights how this shift is redistributing power from traditional retailers to tech giants, with 32% of consumer goods companies implementing generative AI and 38% of global consumers using AI shopping tools as of early 2025. McKinsey (November 2025) underscores that autonomous AI agents are now anticipating needs, negotiating, and executing transactions, compelling brands to recalibrate their digital strategies for machine readability and agent-friendly platforms. Journal du Net (March 2026) details the emergence of open standards like the Universal Commerce Protocol, which are crucial for ensuring accessibility and competition as agent-based commerce becomes mainstream. Forbes (February 2026) notes that consumers’ rapid adoption of AI-driven shopping tools is forcing retailers to prioritize hyper-personalisation, efficiency, and robust data privacy. Inside Retail (October 2025) emphasizes that the rise of AI-driven instant checkout is placing algorithms at the center of discovery, purchase, and brand engagement, requiring retailers to optimize for AI-driven discovery or risk invisibility as traditional marketing and loyalty strategies lose effectiveness.

OpenAI defers its ambition to turn ChatGPT into a shopping platform

What: Liverpool has launched Glam, a new wholesale division, and will manage Dockers’ distribution in Mexico, marking a strategic shift toward vertical integration and brand management.

Why it is important: Liverpool’s new model highlights the growing importance of brand control and wholesale partnerships in modern retail.

Liverpool is redefining its role in the Mexican retail sector by launching Glam, a new division dedicated to wholesale distribution, and taking over the management of Dockers’ business across both physical and online channels in Mexico. This strategic move marks a departure from the traditional department store model, positioning Liverpool as a comprehensive operator with direct control over brand, distribution, and scalability. By vertically integrating operations and optimising inventory, Liverpool aims to capture greater margins and align product strategies more closely with local consumer preferences. The company’s approach is not limited to Dockers or Authentic Brands, as Glam is set up to incorporate additional international brands in the future. This transformation is part of Liverpool’s broader push to strengthen its digital ecosystem, supply chain, and technology capabilities, ensuring resilience amid a challenging retail environment. The shift underscores Liverpool’s ambition to become a unique partner for global brands seeking scale and market entry in Mexico, while also responding to evolving industry dynamics and consumer expectations.

IADS Notes: Liverpool’s transformation and the launch of Glam are detailed in Modaes (March 2026, “The keys to Liverpool's turnaround: brand control, a comprehensive model and international appeal”; February 2026, “Liverpool cuts its profits by 25% despite increasing revenue by 7% in 2025”; January 2026, “Liverpool, the department store that modernised Mexican retail”; October 2025, “El Puerto de Liverpool loses momentum in fashion: can e-commerce and credit save the day?”) and Digital 360 (November 2025, “Liverpool department store deploys agentic AI shopping experience”). These sources highlight Liverpool’s evolution toward brand control, wholesale partnerships, and digital innovation as central to its new retail strategy.

The keys to Liverpool's turnaround: brand control, a comprehensive model and international appeal

What: The Iran conflict has halted air shipments, causing a backlog of fast fashion inventory in South Asia and delaying deliveries to global retailers.

Why it is important: Geopolitical instability continues to reshape sourcing, logistics, and risk management practices in the apparel industry, building on insights from the past year.

The grounding of planes due to the Iran conflict has resulted in a significant backlog of fast fashion garments in South Asia, severely disrupting the flow of goods to global retailers. This bottleneck exposes the acute vulnerability of the fast fashion supply chain, which relies heavily on rapid, uninterrupted air freight to maintain inventory turnover and meet consumer demand. South Asian exporters, already challenged by previous trade tensions and tariff shocks, now face mounting operational and financial risks as unsold inventory accumulates and cash flow tightens. Retailers are being forced to reassess their sourcing strategies, with many accelerating efforts to diversify suppliers and invest in more resilient logistics networks. The ongoing crisis underscores the necessity for robust risk management and operational agility in an industry where geopolitical events can swiftly upend established practices. As the apparel sector adapts to these disruptions, the importance of flexibility and proactive scenario planning becomes ever more critical for sustaining global competitiveness.

IADS Notes: The Iran conflict’s disruption of air freight, as reported in March 2026 (Inside Retail), has caused fast fashion inventory to accumulate in South Asia, highlighting the sector’s vulnerability to geopolitical shocks. The forced closure of global brand stores in the Middle East earlier in March 2026 (Reuters) and the financial strain on Bangladesh’s garment sector following new tariffs in April 2025 (Inside Retail) further illustrate the operational and financial risks facing exporters and retailers. Broader industry analyses from March and August 2025 (Vogue Business, GDI) emphasise the ongoing need for diversified sourcing, resilient logistics, and robust risk management in response to escalating geopolitical instability.

Fast fashion garments pile up in South Asia as Iran conflict grounds planes

What: Central Retail plans to open 30 new stores in Vietnam by 2029, reinforcing the country’s role as a key growth market for regional and international retailers.

Why it is important: The move reflects broader trends of international retailers investing in Vietnam, emphasising the need for operational agility and local market insight, building on insights from the past year.

Central Retail’s ambitious plan to launch 30 new stores in Vietnam by 2029 highlights the country’s growing significance as a strategic destination for retail investment. This expansion is set against the backdrop of Vietnam’s robust economic growth, a burgeoning middle class, and increasing urbanization, all of which are fuelling demand for modern retail experiences. Central Retail’s focus on hypermarkets and supermarkets aligns with evolving consumer preferences and the broader shift toward organized retail formats. The competitive landscape is intensifying as both regional and global players seek to capture market share, prompting companies to prioritize adaptability and deep local understanding. While the opportunities are substantial, the market’s complexity requires retailers to navigate regulatory challenges and shifting consumer behaviours. Central Retail’s commitment, alongside similar moves by other international brands, underscores the dynamic nature of Vietnam’s retail sector and the critical importance of strategic investment and operational flexibility for sustained growth in Southeast Asia.

IADS Notes: Central Retail’s expansion strategy, as reported in March 2026 (Inside Retail), exemplifies Vietnam’s status as a prime growth market. The country’s $350 billion retail potential and economic momentum, highlighted in January and March 2025 (The Diplomat, Inside Retail), have attracted significant investment from international retailers. Strategic pivots by competitors, such as Lotte’s focus on mall and supermarket development in September 2025 (Inside Retail), and Central Retail’s $1.4 billion regional investment plan in June 2025 (Forbes), further illustrate the opportunities and challenges of large-scale retail development in Vietnam.

Central Retail bets big on Vietnam with 30 new stores planned

What: Certain patterns of AI use in retail are causing cognitive fatigue and burnout among employees.

Why it is important: The risks of AI-induced fatigue underscore the importance of leadership engagement and workflow redesign.

The increasing integration of AI in retail environments is creating new challenges for employee well-being, as certain usage patterns are linked to cognitive fatigue and burnout. While generative AI tools can accelerate productivity and expand the scope of work, they also intensify workloads and responsibilities, particularly when not accompanied by structured practices and comprehensive training. Many frontline retail employees remain unprepared for the rapid pace of AI-driven change, with only about half actively using these technologies and a significant portion feeling ill-equipped to adapt. This situation is especially pronounced in entry-level roles, where aggressive automation threatens both talent development and long-term business sustainability. However, when AI is implemented with a human-centric approach, it can enhance customer service efficiency and team engagement, provided that organisations invest in robust support systems and ongoing upskilling. The evolving landscape underscores the need for intentional leadership, thoughtful workflow redesign, and a sustained commitment to balancing technological advancement with the preservation of human capabilities.

IADS Notes: The phenomenon of “brain fry” from AI use in retail is increasingly substantiated by recent industry research. In February 2026, Harvard Business Review reported that generative AI tools, while accelerating productivity, often intensify workloads and expand responsibilities, leading to cognitive fatigue and burnout if not managed with structured practices. Gallup’s January 2026 findings showed that only 51% of frontline retail staff actively use AI, and just 36% of workers feel prepared for AI-driven change, underscoring the urgent need for targeted upskilling, workflow redesign, and leadership engagement. BCG’s September 2025 analysis highlighted the acute disruption for entry-level roles, where aggressive automation threatens talent pipelines and long-term sustainability, emphasising the necessity of balancing technological advancement with human capital investment. In June 2025, ERE Media warned that automation in entry-level positions could undermine business sustainability and talent development. Meanwhile, Journal du Net’s July 2025 article demonstrated that agentic AI, when implemented with a human-centric approach, can boost customer service efficiency by up to 30% and improve team engagement, though comprehensive training and support remain significant challenges. Collectively, these findings emphasise that sustainable AI integration in retail depends on intentional practices, robust training, and a commitment to preserving the human element within increasingly digital environments.

When using AI leads to “brain fry”

What: Boston Consulting Group analyses how evolving tariffs, regulatory changes, and USMCA negotiations are prompting companies to rethink sourcing, manufacturing, and stakeholder engagement strategies.

Why it is important: The findings underscore that operational agility, scenario planning, and stakeholder engagement are now essential for organisations to maintain competitiveness in a fragmented trade environment.

This Boston Consulting Group article explores the implications of the upcoming USMCA review and the broader shift toward a fragmented global trade landscape. Despite recent tariff hikes and a proliferation of bilateral deals, trade within North America remains robust, with the USMCA providing a foundation for integrated supply chains and duty-free access—though this stability is now under review. The article outlines several scenarios for the future of North American trade, ranging from targeted updates to the USMCA, to a complete renegotiation or even a shift to bilateral agreements. Each scenario carries significant uncertainty, as countries may still impose unilateral tariffs or regulatory changes with little notice. The authors recommend that companies establish tariff command centres, invest in scenario planning, and redesign sourcing and manufacturing networks to preserve flexibility and margins. Proactive stakeholder engagement and a solid fact base are also emphasised as critical for navigating negotiations and potential disruptions. Ultimately, the article argues that those who prepare now with robust contingency strategies will be best positioned to seize opportunities and mitigate risks as North American trade rules evolve.

IADS Notes: The looming renegotiation of the USMCA and the evolving patchwork of North American trade rules are driving a fundamental transformation in business strategy and operations. As highlighted by The Robin Report in September 2025, persistent tariffs and policy shifts have forced companies to overhaul supply chains, embrace AI-powered analytics, and prioritise scenario planning to navigate rising costs and declining confidence. BCG’s May 2025 guidance on tariff command centres and McKinsey’s April 2025 analysis of geopolitical nerve centres both underscore the necessity for dedicated, cross-functional teams capable of real-time monitoring, supplier diversification, and rapid response to trade volatility. The January 2026 BCG report further emphasises that organisations are moving beyond just-in-time models, investing in diversified supply chains and robust contingency strategies to manage operational risk in an increasingly fragmented trade environment. McKinsey’s additional guidance from April 2025 reinforces the need for AI-driven analytics and proactive stakeholder engagement, as only a small fraction of companies have successfully scaled these capabilities. Collectively, these sources confirm that success in the new era of North American trade will depend on agility, resilience, and the ability to anticipate and communicate around complex regulatory and market shifts

Preparing for a new era in North American trade

What: A new study finds that outdated return policies and return shipping fees are deterring shoppers, eroding trust, and reducing conversion rates in North American retail.

Why it is important: The impact of returns on shopper behavior underscores the need for retailers to rethink policies and invest in data-driven, customer-centric solutions, reflecting trends documented in the past year.

A recent study by Cashew reveals that outdated return policies and the imposition of return shipping fees are significantly undermining consumer confidence and suppressing demand in North American retail. Nearly half of surveyed shoppers hesitate to purchase if free return shipping is not offered, regardless of product or price, directly impacting conversion rates and long-term loyalty. The research highlights that sizing issues remain the primary reason for returns in apparel, with 74% of returns attributed to fit, while older shoppers—particularly those over 45—account for the majority of returns. Notably, 35% of consumers add items to their cart with the expectation of returning some, and more than half will not complete a purchase without detailed sizing visuals or guidance. The findings suggest that retailers must view returns management as a growth strategy, investing in sizing intelligence, frictionless processes, and multi-generational design to unlock trust, conversion, and loyalty in an increasingly competitive market.

IADS Notes: Return policies have become a critical front-line factor influencing conversion, trust, and long-term loyalty in retail. Journal du Net (January 2026) reports that the escalation of returns fraud has led retailers to phase out universal free returns in favor of differentiated, data-driven solutions, including AI-powered risk management and personalized return experiences. Forbes (July 2025) highlights the industry’s shift toward “returnless returns,” with research showing that allowing customers to keep unwanted items can significantly boost loyalty and repurchase intentions, transforming returns from a cost center into a strategic advantage. By October 2025, Retail Week notes that three-quarters of major UK fashion retailers were charging for returns, reflecting a broader move to balance profitability, customer satisfaction, and sustainability. Forbes (September 2025) observes that the surge in fit-related returns, driven by changing consumer demand and the “Ozempic effect,” is prompting US retailers to recalibrate inventory and invest in real-time planning. The Financial Times (January 2026) underscores the growing influence of older shoppers, who combine digital fluency with brand loyalty and a preference for clear, flexible return policies.

A ‘Returns Revolt’ is underway

What: Saks Global is closing more stores, 12 Saks Fifth Avenue and three Neiman Marcus stores as part of its ongoing bankruptcy-driven restructuring.

Why it is important: This second wave of store closures move reflects the accelerating consolidation and competitive shifts in the luxury retail sector.

Saks Global’s decision to close 20 Saks Fifth Avenue and four Neiman Marcus stores marks a significant transformation in the luxury retail landscape. Following its Chapter 11 bankruptcy filing in January 2026, the company has prioritized optimizing its store portfolio by shutting down underperforming locations and concentrating on markets with the highest density of luxury consumers. This approach is designed to strengthen the company’s financial position and ensure long-term sustainability by focusing resources on its most profitable stores. The closures are expected to result in the loss of thousands of jobs and a substantial reduction in sales volume, but Saks Global aims to drive loyalty and sustainable growth through a more refined footprint. The restructuring also impacts vendor relationships, as many suppliers face uncertainty regarding payments and are exploring alternative distribution channels. The company’s strategy includes continued investment in elevated customer experiences and digital engagement, even as it reduces its physical presence. These developments underscore the challenges facing legacy luxury retailers amid shifting consumer behaviours and intensifying market competition.

IADS Notes: Saks Global’s latest wave of store closures and restructuring efforts align with trends observed in January and February 2026, as reported by WWD (“Major round of store closings set for Saks Fifth Avenue, Neiman Marcus,” February 2026; “The $700M in market share ‘up for grabs’ in the Saks Global bankruptcy,” January 2026; “Saks Off Fifth is shuttering 57 locations and e-commerce,” January 2026; “Saks Chapter 11: how it plays out for vendors,” January 2026; “Dramatic downsizing of the Saks Global store fleet expected with bankruptcy,” January 2026). These sources highlight how major luxury retailers are accelerating portfolio optimization in response to mounting debt and changing consumer preferences. The bankruptcy has led to a redistribution of market share, with competitors poised to benefit from Saks Global’s contraction, while vendors and employees face heightened uncertainty and disruption.

Saks Global sets second wave of luxury store closings

What: Coupang’s data breach exposed over 33 million customer records, triggering executive resignations and regulatory scrutiny.

Why it is important: This breach demonstrates the critical impact of cybersecurity failures on consumer trust and executive accountability in retail.

Coupang’s recent data breach has sent shockwaves through the retail sector, as the exposure of more than 33 million customer records has led to significant fallout, including executive resignations and heightened regulatory scrutiny. The incident has not only damaged Coupang’s reputation but also raised urgent questions about the adequacy of data governance and cybersecurity measures across the industry. As regulatory bodies intensify their investigations, the breach underscores the vulnerability of even the largest and most technologically advanced retailers to sophisticated cyber threats. The operational and financial repercussions have been severe, with the company facing a US securities class action and increased pressure to overhaul its data management practices. This event has become a catalyst for broader industry reflection, prompting retailers to reassess their risk management strategies, invest in more robust security frameworks, and prioritise consumer trust as a core business imperative. The Coupang case serves as a stark reminder that in the digital age, the cost of inadequate data protection extends far beyond immediate financial loss, threatening long-term brand equity and market position.

IADS Notes: As noted in Inside Retail (February 2026), Coupang’s data breach resulted in the exposure of over 33 million customer records, executive resignations, and regulatory investigations, reflecting the severe operational and reputational risks facing the retail sector. Additional coverage in Inside Retail (December 2025) highlighted the critical importance of transparency and robust cybersecurity protocols, while The Retail Bulletin (August 2025) and Retail Week (August 2025) documented similar high-profile breaches at major retailers and emphasized the sector’s vulnerability, particularly through third-party providers. Collectively, these incidents underscore the urgent need for integrated security strategies, resilient vendor management, and a renewed focus on consumer trust and regulatory compliance in modern retail governance.

Coupang’s data breach and the urgency of data governance reform in South Korea

What: Japanese brand Beams is launching a 1,250 sqm flagship store in the US as part of its international expansion strategy.

Why it is important: Beams’ entry intensifies competition among premium retailers in the US, reflecting shifts in consumer preferences and retail strategies.

Beams, a prominent Japanese fashion and lifestyle brand, is set to open a 1,250 sqm flagship store in the United States, signaling a strategic push into the American market. This move is emblematic of the broader trend of Asian brands expanding their global footprint, particularly in Western markets where consumer appetite for Japanese design and culture continues to grow. The flagship format not only serves as a brand statement but also as a hub for immersive customer experiences, reinforcing Beams’ commitment to innovation and differentiation. As the US retail landscape becomes increasingly competitive, Beams’ arrival is poised to challenge established premium and contemporary retailers, compelling them to adapt to evolving consumer expectations. The choice of a large-scale, experiential store underscores the ongoing relevance of physical retail, even as digital channels gain prominence. By leveraging its unique brand identity and retail expertise, Beams aims to capture the attention of American shoppers and set new standards for engagement and service in the sector.

IADS Notes: Beams’ US flagship opening mirrors the surge of Asian brands expanding into Western markets, as detailed in The Robin Report (January 2026), where experiential and digital-first strategies are intensifying competition. The renewed focus on physical retail and flagship investments, highlighted by John Ryan Newstores (December 2025), demonstrates the strategic value of innovation hubs for customer engagement. Inside Retail (August 2025) emphasised the lasting importance of flagship stores for brand differentiation and omnichannel growth. Meanwhile, Inside Retail (July 2025) documented the transformation of Japanese retail, with specialty brands like Beams thriving as consumer preferences shift. The NRF (July 2025) further outlined how the US competitive landscape is being reshaped by international entrants and experiential concepts, particularly those with Japanese roots.

Japanese brand Beams to open US flagship